Buying gifts for kids is always a challenge, so let me suggest an idea that will make your little one happy and teach them a lesson about the power of compounding interest if they choose wisely.
Rather than give their favorite toy or money, offer this:
“I’ll give you $30 now, or I’ll give you a penny and then double it every day for the next 13 days. You’ll get that amount on day 13.”
I’ll spare you the math. By day 13, the compounded amount grows to over $40!
This is why Einstein called compounding interest the 8th wonder of the world. It’s why a 10% return will allow your portfolio to double in just over seven years.
It’s fun for a child to learn this valuable lesson, but it’s essential learning for anyone who wishes to retire someday.
To learn how we help clients increase their chances for more compounded success, click here or call 513-563-PLAN (7526).
Nikki Earley, CFP®