This is one of the most important, or potentially important discussions of the semester. This lesson should really seal the deal on the importance of budgeting, saving at least 20% for short-term consumption and a growing emergency/opportunity fund plus the additional 10% for investment/retirement.
It isn’t so much how much money you make but how you spend that money. However, if the students continue to spend well above 10% of their income on lunch and entertainment and they establish a habit of eating out for every lunch, it will take them a decade to unlearn the habit and begin saving. This loss of more than seven years can ultimately cost them $300,000 or more towards their 10% investment/retirement (rule of 72) and countless sleepless nights regarding short-term spending issues.
Today’s the day that we will change the future of our students lives.