Saving is critical for a young person because you have a lot time to do it. If you start saving a little bit of money as early as even twenty years old, you will be helping yourself for once the future comes. By saving at a young age, you will start to produce a lot of money by the time retirement comes around.
A couple good strategies that may help saving easier, is to think about a big ticket item that costs a lot of money, such as a car or a house. If you set a goal for yourself on what you want to save up for, it will make it easier for yourself. Thinking about retirement is one of the biggest topics to think about when saving money. If you start saving early into your retirement fund, you will have a much better living once retirement comes about. Another helpful strategy would be to save a little bit of money each time you withdraw money from the ATM. If you save five dollars every time you withdraw, then you will eventually save up a lot of money.
Compound interest is interest that accrues on the initial principal and the accumulated interest of a principal deposit, loan, or debt. Here is an example of how compound interest works:
A table showing how much someone saves over a span on years.