Listen up : How does your money grow when you put 50 Euro in a savings account ?

Question

My dad clearly suggest that i open a savings account in which i would of started my savings when i was 12. I am 23 now. Should of started it early.

Answer 1

It's called interest. It is a small percentage with which the money increases. The bank uses that money to invest.

Answer 2

When you put your money in a savings account you are loaning it to a bank for them to invest. They pay you interest so you will bank with them and not invest it in the stock market, or go to another bank.

Invest about 100 Euro's per month and eventually switch from savings to buying stocks and you should be a millionaire when you retire, maybe many times over.