Reasons to start saving money while you are young

Published: Friday, Oct. 26 2012 3:01 p.m. MDT

While it can be hard to not use money in your savings account when you are don’t earn much, there are many reasons why saving while you are young is a good idea, a website says.

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While it can be hard to not use money in your savings account when you are don’t earn much, there are many reasons why saving while you are young is a good idea, according to GoBankingRates.com.

Here are those reasons:

Time trumps amount

It’s much easier to save small amounts of money over a larger amount of time than to drop a large sum into your account all at once.

Interest works for you

In savings accounts where compound interest is offered, your account earns money almost constantly. This works more in the favor of those who store their savings for a long time.

Learn to set goals

Committing to saving money teaches one to have enough discipline to reach a goal.

Have a better retirement

Though it may be hard to imagine being a retiree when you are young, saving money earlier will bring in more money, making your retirement more enjoyable.

Prepare for emergencies

Medical problems, car repairs or other financial emergencies could pop up and having enough money to save for them can be a relief.

Young people actually have more money to save

When you are young, you often have fewer expenses, leaving you with more disposable income to save.

EMAIL: sparker@desnews.com

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