How Teens Can Become Millionaires: Disciplined saving early in life will reap millions … literally! from daveramsey.com 12 Mar 2010 2009 Capital One survey discovered that 50% of teens wished they
knew more about personal finances. Whether you have never stepped foot in a bank or you are actively saving and investing for your future, all it takes is a little effort and a lot of patience to become confident in your financial decisions. A Millionaire’s Best Friend Compound interest. It's like free money. Just check out this story of Ben and Arthur to understand the power of compound interest. Ben and Arthur were friends who grew up together. They both knew that they needed to start thinking about the future. At age 19, Ben decided to invest $2,000 every year for eight years. He picked investment funds that averaged a 12% interest rate. Then, at age 26, Ben stopped putting money into his investments. So he put a total of $16,000 into his investment funds. Now Arthur didn’t start investing until age 27. Just like Ben, he put $2,000 into his investment funds every year until he turned 65. He got the same 12% interest rate as Ben, but he invested 23 more years than Ben did. So Arthur invested a total of $78,000 over 39 years. When both Ben and Arthur turned 65, they decided to compare their investment accounts. Who do you think had more? Ben, with his total of $16,000 invested over eight years, or Arthur, who invested $78,000 over 39 years? Believe it or not, Ben came out ahead … $700,000 ahead! Arthur had a total of $1,532,166, while Ben had a total of $2,288,996. How did he do it? Starting early is the key. He put in less money but started eight years earlier. That’s compound interest for you! It turns $16,000 into almost $2.3 million! Since Ben invested earlier, the interest kicked in sooner. What You Can Do Now Start as soon as possible. A survey by Charles Schwab found that 24% of teens believe that since they are young, saving money isn’t important. That same survey also discovered that only 22% of teens say they know how to invest money to make it grow. Why not change that stat and learn how to become a smart investor with your money? Remember, waiting just means you make less money in the end. So get moving! |
Ending Your Last Semester
1. Stay on top of your assignments. When you're absent, make a point to see me the next day before or after school or during 8th period. Most likely you will have a syllabus with your assignments listed, but you can always email me at [email protected], or you can check in with two or three classmates to see what you've missed. If you're out for an extended illness, make a homework request through the office. Remember, we're working in your absence; by staying current, you avoid playing catch up for days at a time. 2. Get involved. These last few months will be some of the best of your life. Reconnect with those people beyond your circle of friends, those lost friendships from elementary or middle school. Go to Hearts' Festival, the Prom, ballgames, Powder Puff...get involved! 3. Give your best efforts to your classes. Challenge yourself to pump up your GPA these last few months. 4. The District allows you two college days. Use those days to invest in your future. 5. Keep your attitude positive. Every adult in your life is on your side and wants to see you do well, to be happy. Let them nag a little bit; let them worry a little bit; let them brag on you a little bit. Beginning the Future 1. Complete your FAFSA application by the end of January. www.fafsa.gov 2. Listen to the announcements for names of local scholarships being offered. 3. Write thank you notes to those people outside the high school who write letters of recommendations for you. 4. After the last exam, request final high school/PJC transcripts 5. Have a Plan A and a Plan B. |
Benefits of Higher Education
1. College graduates earn almost twice as much as high-school grads over the course of their careers, according to a 2010 report by the U.S. Census Bureau. High school graduates can expect, on average, to earn $1.2 million during their working life, compared to $2.1 million for those with a bachelor's degree and $2.5 million for people with a master's degree.
People with doctoral degrees do even better, earning an average of $3.4 million during their careers, while those with professional degrees such as law or medicine do best at $4.4 million. 2. A college degree can give you an edge in the job market. Although it may seem as though nearly all U.S. adults are college graduates these days, the truth is less than a third have earned degrees. Yet, increasingly, a college degree is a minimum requirement for the best jobs. 3. Whether you want to keep climbing the company ladder or try something completed different, a college degree may help you realize your career ambitions and land a better job. |
4. Not everything you learn in college comes from books. There is tremendous educational value in spending time with people whose
interests and ambitions are either similar or dissimilar to yours. People who challenge you to question, discover and be your best. The discussion, debate and intellectual stimulation that occur among members of a college community is invaluable. 5. College forces you to study subjects you might otherwise never explore, and to grapple with beliefs and points of view that differ sharply from your own. 6. College teaches you as much about yourself as about the world you live in—and self-knowledge is the key to greater confidence and success in every part of your life. http://living.msn.com/life-inspired/10-benefits-to-a-college-education |