Investing 5 min read

Why invest? Compound growth

Time is your superpower. A teen who invests a little now can end up with more than an adult who invests a lot later.

Saving vs. investing

Saving keeps money safe for short-term needs. Investing puts money into things like companies, hoping it grows over many years.

Investing has ups and downs, so it's for money you won't need for 5+ years.

Compound growth

Compounding means your earnings start earning too. Year 1 you earn on your deposit; year 2 you earn on your deposit plus last year's earnings — and so on.

The stock market has averaged around 7% a year after inflation over long periods. Not every year — some years are down — but over decades.

Why starting early wins

The longer money compounds, the more the growth snowballs. Starting 10 years earlier can roughly double your ending balance.

Real example

Early vs. late

Riley starts investing $50/month at 16. Casey starts the same $50/month at 26. Both stop at 65 and earn 7% a year.

Riley put in: $29,400
Riley ends with: ≈ $253,000
Casey put in: $23,400
Casey ends with: ≈ $122,000

Remember this

Invest money you won't need for 5+ years.
Compounding means your earnings earn more.
Starting early matters more than starting big.

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