A 401(k) is a savings plan for retirement offered by many employers that lets you invest a portion of your paycheck before taxes are taken out. The money grows tax-deferred, and many employers offer matching contributions to help boost your savings.

The benefits of investing early go far beyond just growing your savings, they include harnessing the power of compound interest, reducing financial stress down the road.

Building a strong financial foundation starts with creating an emergency fund, having the right insurance and eliminating debt by paying more than the minimum.