Today, I had the opportunity to talk to 450 Centralia and Chehalis high school students about the importance of saving and investing in their future.
The speech was part of Washington Business Week program, which all Junior class students of Centralia and Chehalis high school students participate in.
The goal of my presentation was to drive home the point that financial decisions students make today will impact their future.
You see, young adults have the unique opportunity to take advantage of compound interest. The more you can save when you are younger, the more time your money will have to compound. Let time work to your advantage.
Check out this example of compound interest.
Investor A starts investing $2,000 a year at age 25 and stops at age 35. Investor B starts investing $2,000 a year at age 35 and stops at age 65. Who do you think has more money? The investor who started at age 25, even though the second investor invests more money. Why? Because the younger investor’s money has more time to compound. The interest they earn also earns interest.
If you work with students or have a student at home, consider talking to them about how the decisions you make financially today will impact tomorrow.