Saving that same amount in a CD earning 2 percent would yield only about $300,000. Michelle Herd, senior client advisor at TFC Financial Management, says investing $5,000 per year from age 25 to age 65 in an account earning 6 percent would result in more than $800,000. "If there's one thing that my father, who was a banker, should have taught me earlier in life, it was the time value of money and the magic of compounding returns," says Ted Austin, a market leader for U.S. Young investors have a valuable commodity - time. Blackston says his father David, the founder of Blackston Financial Advisory Group, taught him to save at an early age as a precursor to investing. Someone who has saved but not invested over the past decade would have missed out on more than 200 percent in market returns, says Chuck Mattiucci, senior vice president at Fort Pitt Capital Group. "Your savings should be for emergencies, while investing is for money you'll need 10, 20 or 30 years from now." The difference isn't subtle. "Saving and investing serve different purposes," says Drew Blackston, a registered financial consultant at Blackston Financial Advisory Group. If the seven investing lessons that follow weren't part of your financial education, they should be now. According to a PNC Investments Millennials & Investing Survey, 62 percent of millennial respondents said their parents taught them to save money - but not how to invest it. MassMutual found that 72 percent of parents wished they had taught their kids more about finances. But how much did dad teach you about investing? Not enough, suggests a MassMutual poll of 500 parents with children who graduated college in the past year. Every year on Father's Day we celebrate dads and what they taught us.
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