Teaching Kids to Buy Stocks:
Stories and Lessons for Grown-Ups
AVAILABLE AT
How powerful is compound interest?
The illustration below shows examples of TWO SAVERS.
​
Person 1 starts saving at age 18 and stops saving at 30.
​
Person 2 starts saving at 31 and never stops.
​
Compound interest is so powerful, Person 2 NEVER catches Person 1.
SEE DATA BELOW
THIS IS A HYPOTHETICAL EXAMPLE, AND DOES NOT EXPRESS ANY PARTICULAR INVESTMENT. IT IS SHOWN TO ILLUSTRATE THE POWER OF COMPOUND INTEREST.
​
THIS EXAMPLE ASSUMES 6% INTEREST EARNED EACH YEAR ANNUALLY FOR THE TERMS DESCRIBED.
​
EMAIL US IF YOU HAVE QUESTIONS OR NEED HELP UNDERSTANDING! JJ@TEACHINGKIDSTOBUYSTOCKS.COM
Investor 1
AGE
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
Beginning Balance
$1,000
$2,060.00
$3,183.60
$4,374.62
$5,637.09
$6,975.32
$8,393.84
$9,897.47
$11,491.32
$13,180.79
$14,971.64
$16,869.94
$18,882.14
$20,015.07
$21,215.97
$22,488.93
$23,838.26
$25,268.56
$26,784.67
$28,391.75
$30,095.26
$31,900.97
$33,815.03
$35,843.93
$37,994.57
$40,274.25
$42,690.70
$45,252.14
$47,967.27
$50,845.31
$53,896.02
$57,129.79
$60,557.57
$64,191.03
$68,042.49
$72,125.04
$76,452.54
$81,039.69
$85,902.08
$91,056.20
$96,519.57
$102,310.75
$108,449.39
$114,956.35
$121,853.74
$129,164.96
$136,914.86
$145,129.75
$153,837.53
$163,067.79
$172,851.85
$183,222.96
$194,216.34
$205,869.32
$218,221.48
$231,314.77
$245,193.66
$259,905.28
$275,499.59
$292,029.57
$309,551.34
$328,124.42
$347,811.89
$368,680.60
$390,801.44
$414,249.52
$439,104.50
$465,450.77
$493,377.81
$522,980.48
$554,359.31
$587,620.87
$622,878.12
$660,250.81
$699,865.86
$741,857.81
$786,369.28
$833,551.43
$883,564.52
$936,578.39
$992,773.09
$1,052,339.48
$1,115,479.85
$1,182,408.64
$1,253,353.16
$1,328,554.34
$1,408,267.61
$1,492,763.66
$1,582,329.48
$1,677,269.25
$1,777,905.41
$1,884,579.73
$1,997,654.51
6% Interest
$60.00
$123.60
$191.02
$262.48
$338.23
$418.52
$503.63
$593.85
$689.48
$790.85
$898.30
$1,012.20
$1,132.93
$1,200.90
$1,272.96
$1,349.34
$1,430.30
$1,516.11
$1,607.08
$1,703.51
$1,805.72
$1,914.06
$2,028.90
$2,150.64
$2,279.67
$2,416.45
$2,561.44
$2,715.13
$2,878.04
$3,050.72
$3,233.76
$3,427.79
$3,633.45
$3,851.46
$4,082.55
$4,327.50
$4,587.15
$4,862.38
$5,154.12
$5,463.37
$5,791.17
$6,138.64
$6,506.96
$6,897.38
$7,311.22
$7,749.90
$8,214.89
$8,707.78
$9,230.25
$9,784.07
$10,371.11
$10,993.38
$11,652.98
$12,352.16
$13,093.29
$13,878.89
$14,711.62
$15,594.32
$16,529.98
$17,521.77
$18,573.08
$19,687.47
$20,868.71
$22,120.84
$23,448.09
$24,854.97
$26,346.27
$27,927.05
$29,602.67
$31,378.83
$33,261.56
$35,257.25
$37,372.69
$39,615.05
$41,991.95
$44,511.47
$47,182.16
$50,013.09
$53,013.87
$56,194.70
$59,566.39
$63,140.37
$66,928.79
$70,944.52
$75,201.19
$79,713.26
$84,496.06
$89,565.82
$94,939.77
$100,636.16
$106,674.32
$113,074.78
$119,859.27
Additions
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
Ending Balance
$2,060.00
$3,183.60
$4,374.62
$5,637.09
$6,975.32
$8,393.84
$9,897.47
$11,491.32
$13,180.79
$14,971.64
$16,869.94
$18,882.14
$20,015.07
$21,215.97
$22,488.93
$23,838.26
$25,268.56
$26,784.67
$28,391.75
$30,095.26
$31,900.97
$33,815.03
$35,843.93
$37,994.57
$40,274.25
$42,690.70
$45,252.14
$47,967.27
$50,845.31
$53,896.02
$57,129.79
$60,557.57
$64,191.03
$68,042.49
$72,125.04
$76,452.54
$81,039.69
$85,902.08
$91,056.20
$96,519.57
$102,310.75
$108,449.39
$114,956.35
$121,853.74
$129,164.96
$136,914.86
$145,129.75
$153,837.53
$163,067.79
$172,851.85
$183,222.96
$194,216.34
$205,869.32
$218,221.48
$231,314.77
$245,193.66
$259,905.28
$275,499.59
$292,029.57
$309,551.34
$328,124.42
$347,811.89
$368,680.60
$390,801.44
$414,249.52
$439,104.50
$465,450.77
$493,377.81
$522,980.48
$554,359.31
$587,620.87
$622,878.12
$660,250.81
$699,865.86
$741,857.81
$786,369.28
$833,551.43
$883,564.52
$936,578.39
$992,773.09
$1,052,339.48
$1,115,479.85
$1,182,408.64
$1,253,353.16
$1,328,554.34
$1,408,267.61
$1,492,763.66
$1,582,329.48
$1,677,269.25
$1,777,905.41
$1,884,579.73
$1,997,654.51
$2,117,513.78
Total Principal Saved
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
$11,000
$12,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
Investor 2
AGE
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
Beginning Balance
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$1,000.00
$2,060.00
$3,183.60
$4,374.62
$5,637.09
$6,975.32
$8,393.84
$9,897.47
$11,491.32
$13,180.79
$14,971.64
$16,869.94
$18,882.14
$21,015.07
$23,275.97
$25,672.53
$28,212.88
$30,905.65
$33,759.99
$36,785.59
$39,992.73
$43,392.29
$46,995.83
$50,815.58
$54,864.51
$59,156.38
$63,705.77
$68,528.11
$73,639.80
$79,058.19
$84,801.68
$90,889.78
$97,343.16
$104,183.75
$111,434.78
$119,120.87
$127,268.12
$135,904.21
$145,058.46
$154,761.97
$165,047.68
$175,950.54
$187,507.58
$199,758.03
$212,743.51
$226,508.12
$241,098.61
$256,564.53
$272,958.40
$290,335.90
$308,756.06
$328,281.42
$348,978.31
$370,917.01
$394,172.03
$418,822.35
$444,951.69
$472,648.79
$502,007.72
$533,128.18
$566,115.87
$601,082.82
$638,147.79
$677,436.66
$719,082.86
$763,227.83
$810,021.50
$859,622.79
$912,200.16
$967,932.17
$1,027,008.10
$1,089,628.59
$1,156,006.30
$1,226,366.68
$1,300,948.68
$1,380,005.60
$1,463,805.94
$1,552,634.29
$1,646,792.35
$1,746,599.89
6% Interest
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$60.00
$123.60
$191.02
$262.48
$338.23
$418.52
$503.63
$593.85
$689.48
$790.85
$898.30
$1,012.20
$1,132.93
$1,260.90
$1,396.56
$1,540.35
$1,692.77
$1,854.34
$2,025.60
$2,207.14
$2,399.56
$2,603.54
$2,819.75
$3,048.93
$3,291.87
$3,549.38
$3,822.35
$4,111.69
$4,418.39
$4,743.49
$5,088.10
$5,453.39
$5,840.59
$6,251.03
$6,686.09
$7,147.25
$7,636.09
$8,154.25
$8,703.51
$9,285.72
$9,902.86
$10,557.03
$11,250.45
$11,985.48
$12,764.61
$13,590.49
$14,465.92
$15,393.87
$16,377.50
$17,420.15
$18,525.36
$19,696.89
$20,938.70
$22,255.02
$23,650.32
$25,129.34
$26,697.10
$28,358.93
$30,120.46
$31,987.69
$33,966.95
$36,064.97
$38,288.87
$40,646.20
$43,144.97
$45,793.67
$48,601.29
$51,577.37
$54,732.01
$58,075.93
$61,620.49
$65,377.72
$69,360.38
$73,582.00
$78,056.92
$82,800.34
$87,828.36
$93,158.06
$98,807.54
$104,795.99
Additions
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
Ending Balance
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$1,000.00
$2,060.00
$3,183.60
$4,374.62
$5,637.09
$6,975.32
$8,393.84
$9,897.47
$11,491.32
$13,180.79
$14,971.64
$16,869.94
$18,882.14
$21,015.07
$23,275.97
$25,672.53
$28,212.88
$30,905.65
$33,759.99
$36,785.59
$39,992.73
$43,392.29
$46,995.83
$50,815.58
$54,864.51
$59,156.38
$63,705.77
$68,528.11
$73,639.80
$79,058.19
$84,801.68
$90,889.78
$97,343.16
$104,183.75
$111,434.78
$119,120.87
$127,268.12
$135,904.21
$145,058.46
$154,761.97
$165,047.68
$175,950.54
$187,507.58
$199,758.03
$212,743.51
$226,508.12
$241,098.61
$256,564.53
$272,958.40
$290,335.90
$308,756.06
$328,281.42
$348,978.31
$370,917.01
$394,172.03
$418,822.35
$444,951.69
$472,648.79
$502,007.72
$533,128.18
$566,115.87
$601,082.82
$638,147.79
$677,436.66
$719,082.86
$763,227.83
$810,021.50
$859,622.79
$912,200.16
$967,932.17
$1,027,008.10
$1,089,628.59
$1,156,006.30
$1,226,366.68
$1,300,948.68
$1,380,005.60
$1,463,805.94
$1,552,634.29
$1,646,792.35
$1,746,599.89
$1,852,395.88
Total Principal Saved
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
$11,000
$12,000
$13,000
$14,000
$15,000
$16,000
$17,000
$18,000
$19,000
$20,000
$21,000
$22,000
$23,000
$24,000
$25,000
$26,000
$27,000
$28,000
$29,000
$30,000
$31,000
$32,000
$33,000
$34,000
$35,000
$36,000
$37,000
$38,000
$39,000
$40,000
$41,000
$42,000
$43,000
$44,000
$45,000
$46,000
$47,000
$48,000
$49,000
$50,000
$51,000
$52,000
$53,000
$54,000
$55,000
$56,000
$57,000
$58,000
$59,000
$60,000
$61,000
$62,000
$63,000
$64,000
$65,000
$66,000
$67,000
$68,000
$69,000
$70,000
$71,000
$72,000
$73,000
$74,000
$75,000
$76,000
$77,000
$78,000
$79,000
$80,000
$81,000