Posts Tagged ‘compound interest’

Video: The Time Value of Money

Video: The Time Value of Money

By The Banker | Audio Posts, Investing, Personal Finance, Video

Why is money today more valuable than money in the future? In this lecture to students at Trinity University (in San Antonio, TX) I review four reasons why in any real-world scenarios I can think of, a reasonable person would give me less than $100 today in order to receive $100 from me one year [&hellip

Video: The Compound Interest Formula - A Rainbow Bridge

Video: The Compound Interest Formula – A Rainbow Bridge

By The Banker | Audio Posts, Investing, Personal Finance, Video

In my ongoing, epic, lonely, quest to convince an indifferent world that the compound interest formula will  clothe the downtrodden, feed the grey whales, prevent the coughing sickness and otherwise save the planet, I offer this video explanation for what the compound interest formula does.     I’m teaching personal finance to college kids this [&hellip

The Allowance Experiment, Completed!

The Allowance Experiment, Completed!

By The Banker | Blog Posts, Personal Finance

Last night completed Day 30 of the “Allowance Experiment,” in which I offered my eldest daughter a daily payment calculated as 10% of her allowance savings, compounding daily.  On day 1, she began with an initial grub stake of $1.  She received $0.10 on day 2 (10% of $1) and $0.11 on day 3 (10% [&hellip

The Allowance Experiment Gets Better

The Allowance Experiment Gets Better

By The Banker | Blog Posts, Personal Finance

More Happy Unintended Consequences More exciting things (to me) keep unfolding from the ongoing financial education of my 8 year-old. A little while back I took all of my daughter’s tooth fairy savings and invested it in Kellogg stock, a wonderful, awful, idea of mine to begin teaching her about investing. Following that, my daughter [&hellip

Book Review: The Only Investment Guide You'll EVER Need

Book Review: The Only Investment Guide You’ll EVER Need

By The Banker | Book Reviews, Personal Finance

It pains me to write this[1], but Andrew Tobias’ hyperbolically titled[2] The Only Investment Guide You’ll EVER Need actually lives up to the name. Tobias delivers solid personal financial advice, but in a playful tone. He enlivens an entire chapter on saving money – the world’s dreariest subject – with anecdotes about his own fetishistic [&hellip