Why Should Young People Start Investing Early?

Why Should Young People Start Investing Early?

Investing early is one of the smartest financial decisions you can make - and the reason is simple: compound interest. Compound interest allows your earnings to generate their own earnings, significantly multiplying your wealth over time.

A real-life example? Investing just €5 a day starting at age 20, at an average return of 8%, grows to approximately €228,000 by the time you're 50. If you only wait until you're 30, that same investment will just grow to around €27,953.

How Does Compound Investing Work?

Compound investing works by letting your money grow - and then letting that growth grow even more. Instead of taking out the money you earn from your investments, you leave it in so it can keep building on itself. Over time, this creates a snowball effect: your earnings make more earnings, and even small amounts can turn into something big.

Think of your daily coffee: that spare change rounded up and invested can gradually transform into a significant sum without impacting your lifestyle.

Can You Start Investing with Small Amounts?

Absolutely! Platforms like Impacte allow you to begin investing with as little as your spare change. Using small amounts to invest, also called Micro-investing, is a practical, accessible way for young people to build their financial futures without substantial upfront amounts.

How Does Impacte Align Your Investments with Your Values?

Impacte focuses on impact investing - investments that generate financial returns while creating meaningful social and environmental impact. Your money contributes directly towards global initiatives aligned with Sustainable Development Goals (SDGs), including:

• Fighting climate change (SDG 13)

• Promoting clean and affordable energy (SDG 7)

• Supporting biodiversity and responsible consumption (SDGs 12 and 15)

Every investment with Impacte is both a financial and ethical choice, backed by reputable sustainability frameworks and credible investment partners.

Frequently Asked Questions:

• What is compound interest? Compound interest is the process of earning interest not just on your original investment but also on the accumulated interest from previous periods.

• How early should I start investing? The sooner, the better. Starting young leverages the power of time, allowing your money more opportunity to grow significantly.

• Is sustainable investing profitable? Yes, sustainable investing portfolios have demonstrated competitive returns while positively impacting social and environmental issues.

Ready to combine financial growth with positive impact?

Join our early access list and start investing sustainably with Impacte.