Keep Your Teen From Being Robbed (in their portfolio)
Look, I’m going to cut straight to the chase—your teenager is being robbed. No, I’m not talking about some intellectual robbery or some hypothetical scenario; I’m talking actual financial theft.
How much are we talking about, $50? $500?
How about $1,000,000.
I can see you starting to tune me out due to disbelief but consider the logic: your teenager, if not told about the power of compound interest and how to make it work FOR you rather than AGAINST you, will probably not start investing in a serious way until age 25 or 30. Perhaps even age 35.
Let’s give her the benefit of the doubt and say that she starts investing $100 a month at age 25. Yes, she’s ahead of the curve with regard to many people her age, and yes, at an average of 10% a year in rate of return, she’ll build a portfolio of $531,000 by the age of 65.
Not bad, not bad. But still robbery.
Consider if she had been shown a simple chart at age 15. Something like this:
Then imagine she started to save $100 a month not at age 25 but at age 15. All of a sudden, we’re looking at $1.4 million rather than half a million. Increase the savings to $200 a month and we’re looking at $2.8 million over the long haul.
Here’s why that is so shocking—the difference in starting at age 15 rather than age 25 is a mere $12,000 (contributing $100 a month for ten years). Think about that--$12,000 turns into just under one million dollars because of time.
So, yeah, robbery it is. It's robbery that we don’t teach this to our young adults. It’s robbery that our teens are not educated on the benefits of compound interest. It’s robbery that our teens spend more money on their cell phone bill than on their Roth IRA.
Imagine if that were different . . . imagine if they were educated to see the power of compound interest and start young to take full advantage of the time value of money.
That’s where The Seed Tree Group steps in—check out our online classes to give your teen the gift of financial intelligence to start building a lifetime of wealth.