Compound Interest In Adolescents: Article Analysis

In this society, some of the most important things in your life have to deal with money. In Chad Foster’s book, Financial Literacy for Teens, he taught his readers how to save, spend, invest and give away your money. Reading this book has taught me to start saving when I’m young, know the differences of what I need to buy rather than what I want, to make money while I sleep and giving away some of your money will not only help yourself, but help many others as well.

I regularly encourage young people to start a 401k plan with their employer as soon as they're eligible. This is extremely beneficial because it allows you to put away money before you get your check and are tempted to do something else with that money! If someone decides to participate in their 401k plan for 20+ years, they may be able to secure themselves in a better position to enjoy their retirement. If they start contributing early before marriage, kids, mortgage, and all the other things life comes with, then they will probably continue to invest. I’m glad I started before my life became more complex. I became more disciplined to live without the extra money and continue to live beneath our means, which allowed more contributions when I got promotions or pay raises. The trend continued as a husband, kid, homes, and everything came along.

According to Document A it says that if you get married at age of twenty-three and you save fifteen dollars a month and anyone could do that or try to save up 15 dollars a month then he keeps saving for over twenty years and at the end of that he would have four hundred dollars a month. He would be rich. Anyone could save 15 dollars if they would try hard and not spend the money they are saving at the end they will have a very good amount of cash every month and it would be worth all the saving.

At present, being a young adult has an impact on my financial thinking on behavior because I am focusing primarily on my career. For instance, without graduating from college, I will not be able have a higher wage occupation which will allow to me to focus on other life stages such as middle and older adulthood where expenses are higher and investments can be contracted for (Rachel Siegel and Carol Yacht, 2013, p. 11). Risk-taking is not of interest to me because I do not have a

For example, when you’re playing and thinking about the things that you will be able to buy with your millions of dollars that you will win, such as that trip that you have been planning your whole life. Even last week when my class and I decided to play the lottery; I was thinking about several many things that I will be able to buy with my millions. On the other hand, most people do not think about the money that they are spending on the tickets that they are buying. The little dollar that they are spending starts to add up against them; Think about the other things that you would be able to do with that dollar such as starting a savings account. Today, most people do not know the importance of saving money, it seems like the meaning of saving money has been lost. When I was growing up I always was taught to save money and not to spend your hard-earned money on frivolous things. I was taught to put half away because you would never know when you will need some extra cash.

When I asked Ms. McGlashan what were the three biggest personal finance mistakes that she sees young people struggle with, she said, “Savings, young people don’t invest, or invest in the wrong things.” Ms. McGlashan

Younger generations think they have plenty of time to plan and retirement seems too far in the distance future. But the earlier they begin saving for retirement, the more financially stable they will be at retirement age. Saving a little over a longer time accruing interest over the persons working years would develop into a nice retirement nest egg. Youth today will need to work harder at saving, in comparison to their grandparents and even their parents, due to economic factors and because social security and pensions lack reliability.

Thesis: Today I will inform the audience of the power of saving small amounts of money for the future and how compound interest works in their favor when they start saving as soon as possible.

How to properly manage money is something that should be taught to young people because it is a very important asset in everyday life. “Total consumer debt in the United States stands at nearly $2.6 trillion dollars. That works out to be nearly $8,500 in debt for every man” (Anderson). Many times teenagers are known for “throwing away” their money by spending it on unnecessary things. This is something that could easily be avoided if students were taught the proper techniques on saving and spending money. There are many different skills that students could learn if personal finance was taught in the school system. Managing money is one of those very important skills and would help to lessen the number of young people spending irresponsibly instead of

People are said to get wiser with years due to the experience they receive over the span of their life. Although not the smartest man I know, my father, David Fulghum, has definitely gained a better understanding of money due to his years than I have currently gained as a teenager. His interaction with money has proven to me that he has a great understanding of money, and, although he may have done things differently, he admits the changes he would have made and advises current and upcoming millennials to make these changes.

When you are young you always hear people saying it is never too early to start saving for retirement, but at that age the last thing you want to do is put your money towards ending the career you are just trying to start. It is hard to imagine a time where you won’t have to go to work on a daily basis, to make a wage, in order to pay your bills, but the ultimate goal is getting to that time in your life where you don’t have to go to work and the bills are already taken care of. The hope for everyone is that the bills are taken care of and you are able to focus on leisurely things you did not have an opportunity for while employed. What we fail to realize is that the longer we wait to save the more we have to be concerned with the pressure of time running out and not enough money saved. Not to mention the sooner you start saving the more time you give your money to grow.

In this essay, I will attempt to discuss the interpretation of my discussion board thread's retirement savings plan. In doing so, I will provide an illustration of the challenges I have encountered while trying to save in today’s society. Also, I will shed light upon various methods by utilizing the place of employment saving benefits.

Saving a tenth of what is earned and budgeting the rest is only two of the seven cures that Arkad relays to the group of students. For the tenth that is saved, his third cure is to simply invest it. Compound interest is wonderful when it comes to saving money versus when borrowing money because both the principal and interest accumulated earn interest. By investing the saved money, it then becomes much larger and even greater income (ch.8). Although this may sound great, the fourth cure tells us that we must learn to secure small amounts before investing in substantial amounts. In class, we have learned that where there is risk, there is gain or loss. Whether we decide to loan the money or finance it, we must assure that we are loaning it to a reputable source or understand the dangers that lie in investing it (ch.8).

Money is a precious thing and it can become challenging to not spend it immediately after getting it. It is crucial that this does not happen. There is no denying that money is an important part of society. The world revolves around money and without it, one? would not be able to function. In everyday life the average household will spend one hundred and sixty dollars daily. It is safe to say that money is an resource used daily. It is a tool that can be used to connect with other people or buy anything a person could want or need. Yet it is easy to spend money without realizing how much is really being spent. With only a few simple tips it will become much easier to save money instead of spending it on frivolous things. One’s hard-earned dollar should be saved, and simple tips such as using cash instead of cards, saving small change and only purchasing what one really needs are a few of many ways of doing this. The power of money can easily be abused and it is very important to make sure that a person is well informed on ways to save and spend money wisely.

Have you ever invested money in stocks or maybe received savings bonds as a gift? Those are just two different types of investments that could potentially help with future money plans. It is very smart to start investing money or looking at other ways to invest at a young age to prepare for the future. There are many different types of investments that individuals can use to achieve future savings and investment goals. According to www.fool.com, If you were to invest one hundred dollars as a fifteen-year-old young adult and then receive a ten percent investment rate every year on that initial investment, at the age of sixty-five years old you would turn that one hundred dollars into $1,083. Investing your money rather than saving or spending it is smarter and can help you with your future plans.