My son and I were reading the newspaper earlier today. He is 10 years old. An article piqued his interest - Elon Musk taking over Twitter and how he is shelling out $40B+. He knows that Elon Musk is the richest man today with ~$250B.
He seems more interested in finding a way to make money himself. Here was our conversation:
Son: How much is a $1B?
Me: It's roughly Rs. 7,500 Crore
Son: Well, I'll start a company and will make more
Me: OK, good. Get working
Son: Anyway, how much will my piggy bank grow if I keep investing that?
Me: Let's calculate. How many years do you think you'll live and what interest rate will you grow your money at...?
Background: He's seen the simple compound interest calculator, and he's played around with me. His piggy bank is fully invested in stocks which he picks with me. He seems to like valuing companies we come across.
Son: 90 years (80 years ahead of him), 20% every year
Me: Yes, you'll get to a $1B+ with what you have, if you grow that without touching it (I'm leaving out the exact $B)
Son's not too happy having that when he's 90 years. We'll see what he does to get there sooner.
It's magical to see how money snowballs. He seems to get the concept. Now, let's see if he can really grow that at 20% YoY and if he does not lick into the honey pot.
That's for time to tell.
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