Wednesday, June 22, 2005

How broken does it need to get?

When it comes to math the school system is totally broken.

People readily admit to not being good at math, almost a source of pride for some people. We've experienced cashiers not being able to make change because the computer was down. It is so bad now that restaurants are adding suggested tip amounts to the check because people are not able to calculate a simple 15% tip themselves.

Without knowing math how will you know if you saved enough to fund your retirement or your children's college education? With inflation running about 3% per year is the number you are using now going to be useful in 10 years? Do you realize that will be a big deal?

Compound interest is very powerful but only in the long run. Compound interest is great if you start at 25, but is not powerful enough if you start saving at 55.

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