We get taught a lot of things, but how much are we taught about money?
Compound interest is a powerful concept in personal finance, particularly when applied to saving a portion of your income, like 10%. The importance of compound interest lies in its ability to exponentially increase savings over time. When you save 10% of your income and invest it in a vehicle that earns compound interest, not only do your initial savings earn interest, but the accumulated interest earns interest as well.