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To: carranza2 who wrote (118816)	5/15/2002 6:12:37 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 152472

<How does one instill the lessons of compounding interest into the young, who generally have low incomes and are intent on spending their cash on fun? Should parents save for them, or are no lessons learned that way? > Carranza, parents and schools teach their children that when they are 5 years old [or less]. Saving is the primary lesson. As young children, we [schools in NZ] used to have little ASB books [Auckland Savings Bank] and each week, my pocket money and any earnings would be pinned to my shirt and deposited by the teacher on banking days. Being numerate, I used to love to watch my balance grow. When I learned that interest was paid and a magical amount of money appeared from nowhere as another deposit, I didn't take long to figure out that those 'unearned' deposits were the most fun and that they would compound [though I didn't understand the exponential effect over decades - the interest on interest was interesting anyway]. When in my teens I learned that it was possible to buy shares in companies around the world, I bought some Mount Isa shares, which was a mining company in Australia. I didn't understand anything about P:Es and stuff but did know that copper and other minerals were the building blocks of the world and I loved the idea that the world was under development [and still do]. When the shares quadrupled in price after a year or so, I figured that people had gone kind of crazy and that I might as well buy a motorbike with the money. Which I did. Then, the mining boom ended and prices came back to earth, but I was already zooming around on my shiny, chromium motorcycle. What gets rewarded gets done. Words to live by. Children [and adults] respond to rewards. I was rewarded by working, saving, investing, learning, thinking, inventing and figuring out where the crazed mobs were going. That process started at the dawn of my consciousness. I've always worked, from drying dishes when my eye level was below the level of the bench and had to feel around for something to dry. I've always saved. But that's me. Everyone has a different life experience and saving is sometimes punished [by having the savings confiscated by family, 'friends', enemies or inflation]. People who try to save but are punished will soon figure that saving is for the birds. People who try to work, but are punished won't work. People who try to learn, but fail and are not rewarded for what they learned will not bother with learning. Parents can't provide the rewards falsely, because the essential point to learn is to create value for somebody else and learning what is of value is vital. Stuff like that. That's my theory anyway, Mqurice

To: carranza2 who wrote (118816)	5/17/2002 6:21:44 PM
From: Joe Btfsplk	Read Replies (3) \| Respond to of 152472

How does one instill the lessons of compounding interest into the young, who generally have low incomes..... Hope this link still works. kansascity.com