A blog reader (Dave Stroud) sent me these calculations yesterday and I loved them (thank you, Dave!). I loved them even more when I read them to my daughters and their eyes lit up with excitement. Maybe this is the boost they need to start working on those job charts a little more diligently!
The explanation for this “money system that works” is back HERE.
Here are the calculations of what kids can earn if they earn their money:
I constructed a little chart that shows how much money is earned between ages 8 and 18 if a child is paid their age in dollars every week, they save 20% of that amount every week, and their savings accrues 10% interest every quarter.
If the child is perfect and they are paid a full amount each week (we wish, right?), this is how much they will accumulate:
Starting at age 8: $0
By age 9: $106
By age 10: $275
By age 11: $535
By age 12: $929
By age 13: $1519
By age 14: $2396
By age 15: $3694
By age 16: $5608
By age 17: $8423
By age 18: $12,558
That could just about cover all of their college tuition if they attended community college, then transferred to a cheaper 4-year university.
Or it could pay for a 2-year mission 🙂
Yeah, pretty great incentive right there!