Normal
Last year I had a conversation with a Nephew of mine about the merits of investment, and how starting young and building up a share portfolio is a good thing.He asked - "If I invest $1000 now, how much could I get in dividends in a year"I said - "Well it depends on the company, but possibly 10% so $100"He said - "Why would I want to do that when I could have the full $1000 to spend now"I tried to explain compounding to him, and that the idea is that he would get many times more than the original $1000 over time, but I don't think it soaked in at all, he just couldn't get past the idea that he could just spend the $1000 today. it reminds me of the old experiment where you offer a child 1 jelly now but say if they avoid eating it for 10 minutes they get 3 jelly beans, most kids can't wait.
Last year I had a conversation with a Nephew of mine about the merits of investment, and how starting young and building up a share portfolio is a good thing.
He asked - "If I invest $1000 now, how much could I get in dividends in a year"
I said - "Well it depends on the company, but possibly 10% so $100"
He said - "Why would I want to do that when I could have the full $1000 to spend now"
I tried to explain compounding to him, and that the idea is that he would get many times more than the original $1000 over time, but I don't think it soaked in at all, he just couldn't get past the idea that he could just spend the $1000 today. it reminds me of the old experiment where you offer a child 1 jelly now but say if they avoid eating it for 10 minutes they get 3 jelly beans, most kids can't wait.
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