Book 1 The Kid Who Couldn't Save

Book 1 The Kid Who Couldn't Save

Mike McCarthy spent money as quickly as ice cream melts in July. As quickly as Monday morning follows on the heels of Friday night. No matter how much money he started with, he had a hard time holding on to it for more than a few days. " Money burns a hole in your pocket, " Mike's mom liked to say. “ A penny saved is a penny earned, " Mike's dad liked to say even more.

Mike hated that saying. He objected to it each time. “ Technically, that's incorrect, " he told his dad. “ Earning a penny is not the same thing as saving a penny. " " Well, it's worth the same amount, " said his dad. " One cent, " said Mike. " You can't buy anything with one cent anyway. "

His little sister had no trouble saving money. Despite the fact that her allowance was half of his, somehow Aster had a savings account. Somehow she'd had it since kindergarten一 Mike never had enough money to open one. That wasn't all, though. One May afternoon, Mike discovered that Aster had so much money in her savings account, she earned interest every month.

Okay, so every savings account earns interest, but this wasn't three or four cents a month. This was enough interest to buy herself a candy bar every month. That was twelve candy bars a year, courtesy of Great Plains Bank! “ More like Great Pains, " Mike grumbled. The really disgusting part was that although she could buy herself a candy bar each month, courtesy of Great Pains, Aster didn't. Oh, no.

Math Minute Interest is a percentage of the total saved. For instance: 1% of $500 (savings) is $5 (interest). lf interest is paid yearly, you have $505 at the end of the first year. Compound interest is the money earned on the sum of the savings and the interest. So 1% of $505 is $5. 05, meaning you have $510. 05 at the end of the second year. Since 1% of $510. 05 is $5. 10, how much money do you have at the end of the third year? " I don't get it, " Mike said. “ It's like Great Pains is paying you to eat candy bars. Why wouldn't you do that? It's like, an offer you can't refuse. " Aster smiled sweetly-sweeter still because her two front teeth were missing. " I like to let the interest confound, " she said. " I think you mean compound, " said Mike. He knew what compound meant. It meant his kid sister was earning interest on both her money and the interest the bank paid her. It was all becoming her money. She was like a little sweetly smiling money machine, like a walking ATM with two missing front teeth.