Compound Interest

I’m Miriam Neff and I’m Valerie Neff Hogan with Wise Women Managing Money.

M Most of us work for money.  Idea!  Let your money work for you!  Investing in interest might be slow growth, but it’s growth.  Investing for dividends and value growth is better. 

V Albert Einstein called compound interest the 8th wonder of the world.  If you understand it, you earn it, if you don’t understand it, you pay it.  As the saying goes, ‘you either pay the man or you are the man.’  It’s wise to start early setting that example for your children.  Talk about it and show them charts.  That picture might be much better remembered than words.

M Yes, you can start accounts for them so they learn by participating. Bank accounts or a Roth IRA are great ideas.