I read an article this week from Dave Ramsey’s website entitled “How Teens Can Become Millionaires.”
A little bit of a caveat first: Our most important emphasis is for our children to invest in their eternal souls, regardless of how much money they have here on earth. Please put this article in that Biblical perspective.
That being said, the Bible is very clear in its wisdom for us to save and invest and grow the talents/opportunities/blessings that God has given us.
What blew me away, was the point in the article that if a 19 year old invested $2,000 each year for only 8 years, and then left that money alone until he was 65, that money would grow to around $2.3 million at 12% interest. That is the amazing beauty of compound interest. Boy, do I wish I had that kind of mindset at 19!
The article contrasted the 19 year old with a 27 year old who invested $2,000 a year every year until he was 65 years old. When the 27 year old turned 65 he had around $1.5 million in the bank. The 19 year old invested $16,000 over 8 years and the 27 year old invested $78,000 over 39 years. In the end, the 19 year old ended up with $800,ooo more because he started early.
Here is the chart from that article:
That’s the lesson to burn into our young men and women right now. Start early! Don’t blow all that hard earned income on fancy clothes, restaurants and miscellaneous stuff that you can live without.
Here is the wisdom from Solomon (from God) on this subject:
Go to the ant, O sluggard; consider her ways, and be wise. Without having any chief, officer, or ruler, she prepares her bread in summer and gathers her food in harvest. How long will you lie there, O sluggard? When will you arise from your sleep? A little sleep, a little slumber, a little folding of the hands to rest, and poverty will come upon you like a robber, and want like an armed man.