9th grade finally ended, and summer break started right away. But instead of relaxing, I jumped straight into summer school session 1 at my high school. Right after that, I spent a month at the University of Chicago YSP program, which was intense but amazing.
On top of that, I started studying for the ACT and SAT for the very first time, and then I traveled to Korea for about 2 and a half weeks. With all that going on, my blog posts got delayed way longer than I expected. I felt a little guilty about not posting, but at the same time, it reminded me that this blog is about my real journey as a student.
Learning Beyond the Market
Even though this summer was super busy, I still wanted to grow my knowledge about money and investing. So I signed up for an online course called “Understanding Your Money” from the Wharton School at the University of Pennsylvania.
I finished the whole program, and at the end I received a certificate. It felt really good to complete something structured, not just read random articles online.
Next time, if I get the chance, I want to explain more details about the program and what I learned from it.
Let’s go back to the main story, compound. After I found out I could invest even with just $10, I kept seeing the word compounding. People said it was the “Eighth wonder of the world.” That sounded kind of dramatic, so I wanted to figure out what it really means.
Compounding is when your money earns money, and then that new money also earns more money. For example, if I invest $100 and it grows 10%, I end up with $110. The next year, if it grows another 10%, I get $11instead of $10, because I am also earning on the extra $10 from before. It is like stacking growth on top of growth.
I tried running some numbers with online calculators, and it was kind of shocking. If a teenager invests just $50 a month and gets around seven percent a year, by the time they are $60, it could be over $200 or $1000. But if they wait until age thirty to start, it is way less. The crazy part is that the difference is not because they put in more money, but because they started earlier.
This made me realize that time might be the most important part of investing. Even small amounts can turn into something big if you give them enough years. Starting early seems way better than trying to catch up later.
What I Learned
- Compounding is when money earns money, and then that money also earns.
- It looks small at first but grows fast over time.
- Starting young makes a huge difference.
- Even small amounts can grow if you are patient.
Sources I Read
- Investopedia: Compound Interest Definition
- Fidelity: The power of investing when you’re young
Next time: Top 5 The most custodial friendly Brokerage Companies
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