Schwab MoneyWise ®

Benefits of Investing Early

The value of time

Our Two Cents

It's about time in the market, not timing the market. Your kids have time on their side, so encourage them to start investing as soon as possible.

Kids may think they don't have enough money to invest. But it's not just about how much money you invest, it's also about how much time you have to invest it. And if there's one thing kids have plenty of, it's time.

The benefits of compound growth

The more time you have, the more you can benefit from compound growth.

Try this example with your kids:

If you put away $25 a month for 10 years and never invested it or earned any interest on it, you'd have $3,000 after 10 years. But if you invested that same $25 a month for 10 years and you earned 8 percent each year on your investment, you would end up with more than $4,500. In other words, you'd have 50 percent more.

Use the to try other scenarios and see how savings can grow.


The information on this website is for educational purposes only. It is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, consult with a qualified tax advisor, CPA, financial planner, or investment manager.

The Charles Schwab Foundation is a 501(c)(3) nonprofit, private foundation that is not part of Charles Schwab & Co., Inc. or its parent company, The Charles Schwab Corporation.

Charles Schwab & Co., Inc. ("Schwab"). All rights reserved. Member SIPC.