FORMER GOLDMAN BANKER: The Two Most Powerful Concepts In Math That Go Untaught

[RDS]

The huge credit card debt boils down to compound interest which many are not bothered about.

“The most powerful force in the universe is compound interest”
– Albert Einstein[1]
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“Tomorrow and tomorrow and tomorrow, Creeps in this petty pace from day to day To the last syllable of recorded time”
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This Spring I began teaching Personal Finance to a group of bright college students, and we recently wrapped up a section on compound interest and discounted cash flows.
What I’m trying to get across to these undergraduates is that all of the key financial choices they will make in their lives – all of their future decisions about consumer debt, retirement, insurance, purchasing a home, tax preparation, and investing – will be much, much better decisions if they deeply understand compound interest and discounted cash flows


Read more: Compound Interest Discounted Cash Flows - Business Insider

 

[justabubba]

he's right
and the failure to teach our kids about the true cost of money is what causes many of them to immediately get in credit card debt - from which they never emerge - upon reaching the age of 18

breakeven analysis is another simple concept which deserves to be taught

 

[Fisher]

In a related way, people also do not have the first concept of the time value of money invested. The two are the same thing from different sides.