Last summer, I attended my 30 year high school reunion. A survey was taken. We were asked what is it that we know now that we wished we would have known 30 years ago. Without fail, the most common answer was "compound interest." I am no financial expert but here's an explanation of compound interest in a nutshell.
If a person saves $167 monthly from age 19-27 at 12% interest, then just leaves the money alone and doesn't touch it. At the age of 65, this 8 year savings of $16,000 will have multiplied to 2.2 million dollars.
If a person waits until age 27 to begin saving $167 per month and saves until age 65 at 12% interest; this 38 year savings of $761,000 will have multiplied to 1.5 million dollars.
Time is the best friend of compound interest. That is what our teens have on their side. This is a concept that we want to teach our children and teens. Some teens won't vaule this information; however, for others it could be lifechanging.
What is our motive for achieving this goal? To give it away. The Man Who Hung on the Cross is the story of a wealthy man who took a trip to India. He developed a love for the Indian people and wanted to share the gospel with them. He learned that churches could be built for a reasonable cost. So he called together his family and basically told them that he was going to spend their inheritance to build churches in India. Wow! What a great legacy to leave. We want our kids to accumulate wealth so they can experience the joy of giving.
While there are many books available to educate our teens, Dave Ramsey has a Biblically-based program developed for children and teens, He teaches the bondage of debt as well as the freedom of wealth. It can be purchased at his website.
I'll post again on Mother's Day!
Robin
TO CAR KEYS
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