You've figured out that money doesn't fall from the sky or grow on trees. It sure doesn't just show up in your pocket. You probably earn spending money by holding a part-time job—you know what hard work is.
Why not make your money work for you? It can. It's not magic, but it sure can work like magic!
Compare these three ways of managing your money:
1. You do all the workRoll your mouse over the jar of money.
You save your spare change daily and say it adds up to seven dollars a week. You do that for 10 years, and keep it in a jar in your room.
Roll your mouse over the image on the right to reveal how much you will save (your account balance) that way.
Yes, simply saving money—that is, just not spending it—really adds up.
But your money isn't working for you yet.
2. Weekly investments workRoll your mouse over the credit union.
Collect your spare change every day in a box or jar.
Then, take $7 out once a week and invest it in an account at your credit union.
Have fun with the rest!
Roll your mouse over the image on the left to reveal the total amount of money you'll have in your account after 10 years.
3. One-time investments workRoll your mouse over the bags of money.
Let's say you receive $3,640 at your graduation party (of course!) You put it in a credit union savings account.
This is called a lump-sum investment. Assume the interest rates stay fixed at 2.2%.
Roll your mouse over the image on the right to reveal the total amount of money you'll have in your account at the end of 10 years.
Keep reading to learn what causes such a difference in earnings...