Why should you care about the power of compounding and the time value of money?

Question

Quizplus · Accepted Answer

All of the above reasons are important in understanding the power of compounding and the time value of money. By starting to save early, you can take advantage of the compounding effect over time and achieve your financial goals. It also helps to ensure that you have enough saved for retirement, since Social Security and employer plans may not be enough. Finally, by investing wisely, you may be able to leave a financial legacy for your loved ones.

Why Should You Care About the Power of Compounding and the Time