This ones for the young ones! Unsecured debt: 98.78% Hi-lo fund: 0.15 months

Part of waking up to the realization that my past spending habits were leading me down a quick road to destitution has done a lot for my attitude towards money. Further, it has caused me to take a long hard look at how I got in this position. I have never lacked a work ethic in fact I don't remember many points in my life when I didn't have a job, since I was old enough to push a lawnmower I have nearly always been gainfully employed. This work ethic combined with a business degree, professional designation, entrepreneurial attitude and fabulous people skills has made income generation easy for the most part for me, my problem is and always has been keeping any of it. And this sparked a question... What if... 

What if I could go back in time and instead of wasting money on momentary pleasures that got me no where I would have learned early to be a saver. 

And so I did some calculations for the kiddies, courtesy of the savings calculator I found at, hopefully a parent or two will take some of this to heart and pass this on to their kids. After all "Through wisdom a house is built, and by understanding it is established; and by knowledge the rooms shall be filled with all precious and pleasant riches." Proverbs 24:3-4 

If at age 13 one goes out and gets a paper route paying about $250/month (according to the leader post) and of that $250 the kid puts just $125 away at 5% three years from now on his 16th birthday he will have accumulated almost $5,000 ($4,864.35 for the accountants) NOT BAD AT ALL! I wish I would have had 5K in the bank to buy my first car.

But don't if he doesn't stop there stop there it gets much much better. If our young friend chooses to forgo his fancy new car (cheap and reliable is a much better plan) and continue his path of prudence and savings, as well now that he is a bit older and earning a bit more money at his new gig at the local drive through, he can up his monthly contribution to $250/month and two years later when he hits his 18th birthday and getting ready to face the world on his own he would have $11,697.15 in his bank account. 

Its likely no one told you this when you were young, I kinda wish it would have been drilled into my brain. I don't think many people realize how quickly small amounts in the right direction add up mostly because we are more used the the opposite small payments in the wrong direction (ie credit card payments) seem to last forever. I would love to see school curriculum where this is taught but until then its on our shoulders to educate the next generation so that they don't make the same mistakes we did along the way.

Till next time! Plan to Prosper!

David Whitrow, CMA


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