Saving & Compound InterestCompound Interest

Start at 20 or at 30?

Ten years of waiting can cost more than ten years of saving

Ann saves for 10 years and stops. Ben saves for 30. At 65 they have about the same. How?

You'll find out

  • What 10 years of waiting costs
  • Why the first dollars work hardest
  • What a late start can still do

Why it matters

In compounding, years beat dollars. When you start can matter more than how much you put in.

About 3 min6 interactive slides · 5 questionsLesson 42 · Zone 5

Play this lesson

Free to play in your browser or on iPhone

More in this zone

  1. 37SavingPay Yourself FirstSave before you spend, not after
  2. 38InterestSimple InterestInterest paid only on what you put in
  3. 39Compound InterestInterest on InterestCompound interest turns a straight line into a curve
  4. 40Compound InterestThe Rule of 72Divide 72 by the rate to see how fast money doubles
  5. 41Compound InterestEinstein Never Said ItThe 'eighth wonder of the world' quote has no source
  6. 43PatienceFranklin's 200-Year GiftBenjamin Franklin left £1,000 to Boston to grow for 200 years; by 1990 it was worth millions
  7. 44Saving PsychologyFuture You Is a StrangerYour brain treats your older self like someone else
  8. 45SavingThe Emergency FundCash that turns a crisis into an inconvenience