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Economics

The Essentials of Personal Financial Literacy

Quick fact

A person who saves $200 a month from age 25 with a 7% average annual return will have roughly $500,000 by age 65, while someone who starts at 35 would need to save nearly double that to reach the same amount—illustrating the massive impact of time and compound interest.

Why this is interesting

You've probably heard that your salary is only one part of your financial picture. But how do some people with modest incomes build wealth while others with high incomes end up broke?