I spend my days educating families on financial truths like the power of uninterrupted compounding interest.
Let me ask you...Given a choice, which of the following would you prefer?
a) A penny that doubles every day for 30 days.
Most people would likely choose $1,000,000. The penny that doubles every day for thirty days, however, would result in more than ten times that amount — or $10.7 million to be exact. This simple question is a perfect, if somewhat extreme, illustration of the power of compounding.
In the attached article, Mr. Hartzell talks about the need to educate and encourage young people to apply the practice of compounding interest. If we encourage our children to save a few dollars everyday (maybe give up their Starbucks Frappuccino 3 days a week) they could actually have hundreds of thousands of dollars in retirement!
Lets create a generation of people who earn compounding interest and don't pay compounding interest in debt. A generation that understand opportunity costs and how to recapturelost opportunity costs so there financial future is more secure. Lets encourage our youth to try to save and not spend every dollar and then some today!
Lets make sure we as adults understand these important financial truths; compounding interest, opportunity costs, the cost of spiraling debt, and saving...