06: Financial Literacy for Every Daughter

Who gets to give names to specific celebratory months? Have you ever wondered? For example, April is National Humor Month, National Internship Awareness Month, Inventors' Month, Jazz Appreciation Month, Cannabis Month, National Alcohol Month, and the list goes on and on. I would like to focus on April as National Financial Literacy Month. Why? Because Tax Day is just around the corner! It's important to talk to young people about financial literacy. The most valuable thing that young people have on their side is TIME. Just putting away small amounts of money—and starting while you're still young—will yield amazing results! Show Highlights: Money invested over the long-term will DOUBLE on average every 7 years Diversified mutual funds are best, and it's essential to get a good financial advisor It doesn't take a LOT of money—the important thing is to just GET STARTED Delaying by just a few years can make a difference of MILLIONS Why? Because of the power of compound interest As an illustration, would you rather have $1 million right now OR a penny now that doubles every day for 30 days? At Day 20, you would have $5,242.88 At Day 24, you would have $83,886.08 At Day 26, you would have $335,554.32 At Day 27, you would have $671,088.64 At Day 28, you would have $1,342,177.28 At Day 30, you would have $5,368,709.12 If you invest $100/month from age 20 to age 34, and then no more, you would have invested $16,800, which would grow to $731,822.31 at age 65 If you invest $100/month from age 34 to age 65, you would have only $241,365.32 It's essential to understand the numbers for financial literacy and get serious about saving money ASAP Find a good financial advisor who helps you invest in a solid portfolio of diversified funds and DON'T watch the market daily. Keep adding to it and watch it over time Albert Einstein said: "Compound interest is the eighth wonder of the world. He who understands it, earns it, and he who doesn't, pays it. Compound interest is the most powerful force in the universe." Resources mentioned in the episode: Resources mentioned in the episode: "I'm Gonna Need Ice, with Matt" - Starting Young – The Miracle of Compound Interest If You Still Don't Believe In The Power Of Compound Interest, You Have To See This Compound Interest Calculator

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06: Financial Literacy for Every Daughter is an episode from Letters to My Daughter by Elisa Hays.

This episode is 12:57 long.

This episode was published on Apr 5, 2018.

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