If you buy a cup of coffee every day for $ (an awfully good price for a decent cup of coffee, nowadays), that adds up to $ a year. If you saved that $ for just one year, and put it into a savings account or investment that earns 5% a year, it would grow to $ by the end of 5 years, and by the end of 30 years, to $1,. That’s the power of “compounding.” With compound interest, you earn interest on the money you save and on the interest that money earns. Over time, even a small.
