The Power of Compound Interest: Start Saving Early

Saving for the future can feel overwhelming, but starting early gives you a major advantage: the power of compound interest. This financial superpower helps your savings grow faster by earning interest not just on the money you deposit but also on the interest that accumulates over time. The earlier you start saving, the more time your money has to multiply, turning small, consistent contributions into a substantial financial cushion.

Why Start Early?

Here’s how compound interest works in your favor:

• Your Money Works Harder: Even small contributions grow significantly over time thanks to the "snowball effect" of compounding.

• Time is Your Best Friend: The longer your money stays invested, the more opportunities it has to earn interest, creating exponential growth.

• Less Stress Later: Starting early means you won’t need to save as much each month as starting later, reducing financial pressure in the future.

• Builds Healthy Habits: Early saving helps you develop good financial habits that last a lifetime.

For example, if you save $100 a month starting at age 25 with a 5% annual interest rate, you could have over $150,000 by age 65. Wait until age 35; that savings plan would only grow to about $82,000. The difference is staggering!

It’s never too early—or too late—to harness the power of compound interest. Whether you’re just starting your savings journey or looking to boost your existing strategy, the key is to begin now. FASNY FCU is here to help you grow your savings with tools and resources that make every dollar count. Start today, and let time work its magic!