Hello friends, It’s been busy busy busy around here! We have so many things happening, and are excited to share them as they develop!
Welcome to those we met this weekend at one of our two book events in Orange CA at Bookman Books and Book Carnival. It was so much fun! The Sunday event at Book Carnival included an opportunity to read from the book and answer questions in a more formal setting. There were a few teens and young adults in the audience that asked so many great questions! We will have photos up on the site soon - you can see some of them on our Instagram and Facebook feeds.
I was a recent contributor to a blog post for an OppU by the company OppLoans titled 9 Creative Ways to Teach Children About Money This Summer. Check the link to see more!
We would like to share this EXCEL based COMPOUND INTEREST SPREADSHEET with you to help show the power of Albert Einstein’s 8th Wonder of the World - COMPOUND INTEREST.
You will find two pages to the workbook: one page for calculating a lump sum, and one showing two scenarios with monthly additions.
These worksheets can be handy to show kids (and yourselves) the power of saving money, especially the power of saving EARLY.
Take a look at this hypothetical example:
Person 1 saves $1,000 per year from age 18 to 30 into an investment that earns an annual rate of return of 6%, then STOPS.
Person 2 starts saving $1,000 at age 31 into an investment that earns an annual rate of return of 6%, and doesn’t stop, but also never catches up to Person 1.
At age 60, Person 1 has $23,252 MORE than Person 2, even though they invested $17,000 LESS. Download the COMPOUND INTEREST SPREADSHEET and run the numbers for yourself!
Person 1 at age 60 $102,310
Person 2 at age 60 $79,058
--- If you wonder what all this “We” stuff is about… that’s because there’s more than me running this ship. I couldn’t be doing it without my wife and partner Jodie. She not only has supported me in this endeavor, she works right beside me in the office every day as we build a platform for financial literacy!
J. J. Wenrich CFP