Just back from vacation and reflecting on various conversations that arose in the course of my travels. As anyone who has listened to my podcasts knows, I like to ask lots of questions but in the conversations described below, finances were brought up without my prompting. Here's what I heard:

• A 67 year old cab driver lamented the fact that he was collecting his Social Security check which wasn't enough. As a result, he had this side hustle driving a cab. "If I had only socked some money away in my 30s, so I could enjoy my retirement." For those of you wondering, every dollar he invested in a simple S&P500 index fund when he was 30 (37 years ago), would now be worth $53 as the S&P500 has grown 5199%, assuming dividend reinvestment, since 1980. I wondered if hearing his story would impress upon your students the importance of saving while you are still young to enjoy the fruits of compounding interest. 
• A tow truck driver (We had an encounter with a deer that left our car and the deer in bad shape) shared his story of his recent wedding. He proudly told us how he and his fiancee had been saving for years ("every time we had a little extra money, we socked it away") so they could enjoy a dream three week honeymoon in Europe. "The fact we didn't have any credit card debt after this trip made it all the more enjoyable."
• A dad described how he sat down with his daughter to review her student loan repayment plans. Unbeknownst to her, she was in a 25 year repayment plan which would have required that she pay multiples of her principal back in interest. He explained to her how she could reduce her interest payments dramatically by increasing her monthly payment which was difficult for her to do. Another great reminder of the importance of teaching the basics of student loan repayment and getting students away from focusing just on the monthly payment but looking at how much interest they will be paying over the life of the loan. 

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Looking for additional resources to teach these concepts:

• Data Crunch: Why Should You Invest When You Are Young?
• Create: Your Savings Goals
• Calculate: How Much Should I Borrow For College?

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.