3. Why is it better to save a little each month for a far-off retirement goal than to wait until five years into your first job post-graduation? (LO 4-2)

a. The magic of compounding grows money at an increasing rate the longer it is saved.

b. If you don’t start early, you never will.

c. You are likely to be taxed more when first employed than when working at an entry-level wage or salary.

d. It is not any better to start five years earlier.