Recently my daughter asked me why people work. I told her, to make money. She then asked, why do we need money. Instead of telling her the obvious answer which would be to buy things, I told her to think of money like friends. You have one friend, or one dollar. That one friend goes out and makes a new friend; now you have two friends, or two dollars. Those two friends go out and make friends so now you have 4 friends, or four dollars. I went on and on adding up all the new friends and dollars until she said got frustrated with me and asked me to stop, at which point I said, now you know the concept of compounding.
June 05, 2017|