Growth

Mr. Robinson always saves his best for the end of the year. Something for the kids to remember him by. Practical advice that had the power to help his students if they chose to listen to it.

As he gave the lecture on compound interest, his chest is filled with pride. He knows that he is empowering the youth to take control of their financial lives and provide themselves the freedom that everyone desperately wants.

"So you see class, if you simply save $1000 a month, and invest it in something safe, like the stock market, you will yield about 8% a year. And over time, little by little, that little investment, done consistently throughout your life will yield-"

This was it, the viola moment. He presses the button and a big fat $7 million dollars appears on the screen. With one click of the button, the students' lives have been changed forever. His defining moment, his magnum opus.

Then a hand goes up in the back of the room.

"Yes, Eduardo."
"So what do we do with the $7 million?"
"Well, most people use it for their retirement expenses."
"What happens to it after we like...die?"
"Well Eduardo, in most cases the money gets inherited by your children."

Eduardo starts entering numbers into his calculator.

"So you see class, compound interest, which some call the 8th wonder of the wo-"

Eduardo's hand goes up again.

"Yes, Eduardo?"
"So let's say our kids inherit that 7 million."
"Okay."
"And then they do the same thing that we did. Invest that 7 mil plus $1000 a month for the next 50 years."
"Okay..."
"That $7 million becomes...$335 million."
"Why yes! Yes, it does Eduardo! That's exactly right, just look at the power of compound interest!"
"But wait Mr. Robinson. What if we do the same thing again. Let's say my kids give that $350 million to my grandchildren and they do the same thing, invest $1000 per month at 8% for 50 years."
"Uh okay..."
"It becomes $15 billion!"
"Yes! Yes Eduardo it does!"

"No, you don't get it. What if we do the same exercise again."
"What?"
"Do the same exercise for another 50 years."
"Okay."
"It becomes $700 billion. Do it one more time. It becomes 32 trillion."

At this point, Mr. Robinson sits down.

"Mr. Robinson?"
"Yes?"
"That's bigger than the U.S. economy. And that's just me. If everyone in class did the same thing...and that's just 30 people. What if millions of people did the same thing? What happens then, Mr. Robinson?"

Marina, who had been sitting and listening to this riveting conversation, chimes in.

"A revolution."