"The challenge is not to touch it!"


#1

Overheard a 65 year old guy telling a 13 year old kid this at the check out at Target last night :slight_smile:

I don’t know how they got on the subject, but he was telling the kid that it’s really not that hard to become a millionaire by his age because all you have to do is set aside some money every month and let compounding do the rest! And that kid was glued to him!

That’s how you get kids interested right there - associating this $$$ stuff with terms they can get EXCITED about. You go off on budgeting or “saving for retirement” and they can care less. But talking about being a Millionaire?? Hell yeah!!! You get everyone’s attention! :wink: And then you hit them with the “how.” - BOOM


#2

I was in Target the other day


#3

I have now contributed to an Investing category topic.


#4

You did that just for the badge? :joy:


#5

Me too! You guys are bad.

@J.Money - you should do something about @Nate crapping all over your great topic. How do we get folks to care about money? Dangle the carrot!! (and make sure @Nate’s not next to you at Target)…


#6

no, I don’t look at the badges, I just thought it was about time I joined in my first money conversation, haha


#7

Based on the thread title and opening line, I thought this was going in a totally different direction.

That’s all I have to say about that.


#8

yeah for real - got some jokers up in here today! :triumph:


#9

That’s pretty much how I get my teenager to do a lot of things. I tell/show him the part that I know he’ll get excited about. Then after he’s excited about it tell him what he has to do to make it happen.

We were in a serious car accident 5 years ago thanks to an unlicensed uninsured driver. After medical expenses were covered by our uninsured insurance policy we each got a small settlement. Our oldest child was 12 when we got the settlements. We were told the money had to be put into an account until he was 18. I could have selected an account for him but I knew it’d be a great teaching moment so I told him he could decide what sort of account to put it in.

He wanted to do a savings account because that’s what he already knew about. I told him that our bank didn’t have great interest on savings accounts and explained interest to him. We went to the bank and he asked what kind of accounts they have. He ended up going with a 5 year CD since that had the highest interest rate available. Every year in January he gets his statement and gets excited that he earned $150 or so dollars by doing absolutely nothing.


#10

Great real life example and hopefully he chooses to invest that into a good index fund when he turns 18 @Amy

Good story @J.Money


#11

Hahahahahaha.


#12

Good one, doc. You made me go up and check the title. Lol.


#13

I figured the post would be a challenge to not mess with any of your investments during the last couple of days of volatility. That is also a sure way to maintain that account. I have been good. I did not touch it, I did peak today though. :smiling_imp:


#14

Uh huh - usually I get called out for being the perverted one!! Way to steal my thunder…from down under!


#15

If only we all took the time to listen to those older than us. Imagine what we could learn.


#16

Love that so much, @Amy!!! But even more so that you all came away from that accident okay - scary!! (at least I hope you all came away okay??)


#17

@J.Money at the time we weren’t okay but within 3 months we’d all healed from our physical injuries. Thankfully I was the only one in our vehicle who required surgery. The engine block of my minivan made it’s way onto my right ankle tearing it up. I still have some mobility issues from post-traumatic arthritis I developed in the ankle. I just have to remind myself every day to keep doing my ankle stretches. The only thing I can’t really do anymore is run long distances. I’ve maxed out at a mile, then my ankle starts to let me know it hates me. I never really enjoyed the long distances runs anyway. I used to do them just because I could.


#18

Oh man… i can’t even imagine going through any of that… could have been so much worse!


#19

Definitely! A lot of things happened that evening that made us all so lucky given that head-on collision on rural roads often have fatalities. My habit of driving no faster than 40 on rural roads paid off for us and the other driver even though he was going much faster when he hit me.


#21

That man is smart and the kid is so lucky to learn the concept of compounding at such a young age.

I was lucky as well. I had just recently remembered an experience as a child myself about learning the power of compounding. Thanks public school teachers!

I’ve actually included in a blog post coming out this week. Here is an excerpt:

"I remember being a kid and my teacher prodding us to go home and offer to our parents that we would empty the dishwasher every day for double the amount of the previous day, starting at 1 penny. The idea here is that your parent will hear that you are going to help around the house for $0.01 the first day, then $0.02 the second day, then $0.04 the third day and so on. The expectation is that your parent’s won’t catch on to the compounding aspect of this deal.

I won’t make you do the math, but by day 10 your parents are paying out $5.12 and you’ve made $10.23. By day 20, get this, your poor, ignorant parents who just want you to do some damn work around the house, are paying you $5242.88 and you’ve already made $10,485.75!!!"

Truly the best way for a young person to super charge their path to FIRE.