Teaching Young People

 

We teach reading, writing, arithmetic, history, foreign language, science, music, and the arts in high school but not finance.

High school classes are designed for students who want to attend college but are not designed for those students who do not want to attend college.

For me, this is a big mistake...

RULE OF 72 - take a percentage that represents some sort of interest rate and divide that number into 72.  The answer approximates the number of years it takes for one's money to double in value.

For instance, a mutual fund over a period of 40-80 years, averages during any 20-year period of time, 8-12% every year.  So, let's use 10%.  Dividing 10 into 72, results in 7.2 or one's money will double every 7 years.

Starting Amount

$10,000     2025 - your age is 20

$20,000     2032                       27

$40,000     2039                      34

$80,000     2046                      41

$160,000    2053                      47

$320,000    2060                     54

$640,000    2067                     61

$1,280,000  2074                     67 - retirement age

Think about this...

How much does college cost?

Where do you get the initial $10,000?

• Work part-time during high school and save
• Work after high school and live with parents and save
• Ask parents for the money
• Instead of starting at age 20, start at age 24

The point is that this type of financial knowledge should be taught to all students in high school, especially those who do not want to attend college.