Page 62 • The HERALD • 30th October 2025 v THE HERALD - Your Community Magazine v ASK A PROFESSIONAL Benefits of Compound Interest for Younger Investors by Michael Osman, Oyster Financial Planning Young investors can bene t signi cantly from compound interest by starting early and investing consistently. Junior ISAs are a great way of starting this for children up until age 18 and a normal Stocks and Shares ISA from 18 and above. If you have a child or grandchild around these ages read on to learn how you can help them get a better nancial start in life, in what is going to be a tougher port country moving forward. Here are some key advantages: Exponential growth: Compound interest allows investments to grow faster than simple interest, which can lead to substantial wealth over time. Time in the Market: e longer your investments are held, the more time compound interest has to work its magic, maximising your earnings. Psychological Momentum: Starting early creates momentum, making you more likely to stay engaged with your nances and nancial goals. Tax Advantages: Tax advantaged accounts like ISAs and Pensions can further amplify compound interest growth by deferring taxes on investment gains. Financial Independence: By leveraging compound interest, young investors can secure nancial independence and a substantial retirement portfolio. Starting early and investing consistently is a powerful strategy for building wealth and achieving nancial success. I have regularly advocated in my articles for young workers, getting their rst proper paycheck to build a small emergency fund (in cash) and then save 10% into something like a Stocks and Shares ISA for their nancial future. Start doing that then as every salary increase comes around carry on investing 10% of this higher salary. e earlier you start, the more bought in your (children or grandchildren) will be and more likely to carry on until their wealth builds creating good choices in the future. DON’T DELAY GET THEM INVESTING TODAY!! e same applies for Junior ISAs, the earlier you start the better for your young, loved ones. Just remember with a Junior ISA whatever you put in cannot be withdrawn until the child reaches 18. If you would like to discuss any of the above, please do get in touch. Email: Michael@ oyster nancialplanning.co.uk, call: 023 8084 8410 or pop in and say hi we are based in Hythe village opposite the old Lloyds Bank. Michael Osman, Oyster Financial Planning
RkJQdWJsaXNoZXIy MTIyNzI=