👉 Saver math, also known as compound interest savings, is a financial strategy that leverages the power of interest to grow savings over time. When you save money and it earns interest, that interest itself starts earning interest, creating a snowball effect. For example, if you deposit $1,000 at an annual interest rate of 5%, after one year, you'll have $1,050. In the second year, the 5% interest is applied to $1,050, resulting in $1,102.50. This process continues, leading to exponential growth. The key is starting early and consistently saving, as even small amounts can accumulate significantly over decades due to the compounding effect.
