From BusinessInsider:

The math is pretty convincing:

• Save (or more accurately invest) $1,000 per year for 40 years starting at 25 and accumulate over $213,000 by age of 65
• Wait 10 years and invest that same $1,000 per year for 30 years starting at 35 and accumulate only $101,000 by age of 65

So, the extra $10,000 saved between 25 and 35 yields over $110,000 in retirement savings at 65.

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Want your students to get more practice with compound interest calculators? Try this NGPF Activity: Compound Interest

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.