7 Reasons to Start Saving Young ...

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There are several sound reasons to start saving at a young age. Saving may not be as exciting as spending, but seeing your balance mount up can be quite a thrill too. So even though having a good time may seem more important than putting money away, don't neglect feeding your savings account. When you have kids, it's wise to encourage them to get into the savings habit as well. So here are some really smart reasons to start saving as early as possible …

1. Compound Interest

One of the best reasons to start saving young is that your savings have longer to grow through compound interest. This is how it works. Say you start with $100. In year 1, you earn interest on that $100. But in year 2, you earn interest on the original $100, plus on the interest you earned in the first year. And so it carries on. Therefore the earlier you start saving, the more years it has to grow.

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