Good opportunity for students to write a persuasive essay or even a few paragraphs disagreeing with the premise of this column:
“If you think you can save your way to wealth, you’re wrong. Spending less than you make is not the path to riches. Instead, wealth comes and goes as asset prices -– real estate, stocks, and bonds -– rise and fall.”
Encourage your students to use data, compound interest calculators and other expert advice to persuade the reader. My hope is that this activity would help students understand difference between saving and investing (and the need for both!), the need to have an emergency savings account and the power of compound interest (or compounded returns) achieved through investing in assets such as stocks and bonds.
Check out Next Gen Personal Finance’s lesson on Savings Basics to reinforce these key concepts.