FACT: Young adults (ages 20-24) represent the fastest growing segment of bankruptcy filings. • Should young adults be allowed to file for bankruptcy, or should they have to work to pay off all the debt they have accumulated? Explain. FACT: If you open a savings account with $10 and add $10 a month, in ten years you will have earned $203 free money (at 3% interest) or $367 in free money (at 5% interest). And…did you know that if you put $1,000 in the bank and never add one penny to it, in ten years it will be worth $1,223 if it earns 2% and $1,500 if it earns 4% interest? • That’s a lot of free money! Do you feel it is important as a teen or young adult to save for your future? Explain. FACT: Do you know the Rule of 72 and how it works? It’s an easy way to approximate how long it will take your savings to double. Just divide 72 by the interest rate you earn to determine the number of years it will take your money to double. You can use the Rule of 72 to compute how fast your savings will double! For example, if you money is earning 3% interest it will take 24 years for it to double (72 divided by 3). It if is earning 24%, it will take 3 years to double. • If you have a bank account, do you know how much interest you are earning? FACT: Teens who have had classes in how to manage money are more successful. • Why do you think this is true? Explain. FACT: You will earn one million dollars if you start working at 20 until you are 65 and earn only $10.68 an hour the entire time! Even though you will need most of that to live, it means you have a lot of choices every day! And the more money you make the more choices you have. Even small choices have the potential to become significant savings. • What choices could you make this week to save $5 or $10? MoneyFindings CONTINUED 16 | LESSON 1 | WHY DOES MONEY MATTER?