The Rule of 72 | Dad, How Do I?

Dad, how do I?

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Transcript provided by YouTube. Slightly edited with AI.

Hey kids, it’s Money Monday as we start looking at different kinds of investments and how money actually compounds. I want you to keep in mind the rule of 72. This is a hidden gem found in my book on page 194. It’s not exact, but the rule of 72 is a quick way to tell how long it will take for your money to double based on your interest rate.

It’s good to have money in a savings account at a bank for emergencies. However, we need to look at better options in order for your money to compound and grow faster. An average interest rate at a bank is 2 percent right now. My local credit union is half a percent on anything over $500. If you can get into better investments like mutual funds and ETFs and make 8 percent, for example, your money will double in 9 years because 8 times 9 equals 72.

Hopefully, this helps you to see not only why we need to get our money working for us but also why it’s important to educate yourself so your money is working smarter for you. I will leave you with a math question based on the rule of 72. If you put your money in the bank at 2 percent, how long will it take for your money to double?

I hope you have a great week, and God bless you.

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This post was previously published on YouTube.

Welcome to “Dad, how do I?” Here you will find “How To” videos by a dad who has raised 2 adults (and we still talk). I will do my best to provide useful , practical content to many basic tasks that everyone should know how to do. On this channel, you will find a variety of content like How To’s, Story times, Dad Chats, and more!

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