#SAVING March 2

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Today contribution to the 30-Day Letter Writing Coach4aday Challenge is on SAVING.

The challenge involves composing a letter to yourself when you were an earlier age. The goal is to focus on a value, habit, or choice that needs to be adopted or made.

My letter today goes to my 10-year-old younger self. Coming off a gift of $10.00 in 1963 for my 10th Birthday and contemplating what to do with what I deemed a windfall. Eventually instead of blowing on candy, baseball cards, or going to the movies I got to go with my dad to open up a Savings Account with $5.00 and that habit of setting aside part of my income became part of who I am.

Day 2 Letter-SAVING

Dear 10-Year-Old Dan:

Today I want to talk to you about the doubts you are having about SAVING the cash you received last week for your birthday. Having $10.00 of discretionary money in 1963 sure presents its share of temptations to a 10-year-old boy growing up in Morristown NJ. Knowing you can walk across the street after classes concluded at St. Margaret’s Parochial School (today it is Shephard Prep) and go on a spending spree is a thought. Shalit’s Drug Store sits 100 yards from your school on the corner of Speedwell and Sussex Ave. and they offer you the opportunity to buy lots of candy and Topps Baseball Cards. Realizing that you can also stroll down South Street on Saturday check the matinee movies at the Community Theater is also enticing.

Despite all those temptations I am going to encourage you to begin a lifelong habit of SAVING. Take some of that birthday cash and set it aside. Maybe take your dad up on that offer to create a Savings Account down at Morris County Savings Bank on the corner of South & DeHart Street. It only takes $5.00 to get started and you have that and some.

At 10-years old it not too early to learn about the miracle of compound interest. In essence the bank will pay you to hold your money so they can lend it to someone else who will pay a higher rate to borrow it.  Become familiar with the Rule of 72. The bank has agreed to pay you 4% on your savings account. It may seem like a long off but there is a way you can double your money with interest and time. The earlier you start the more time you have.

In couple of years, you will probably be landing a job as newspaper delivery boy for the Newark Star Ledger and Daily Record. Having the habit of savings in place will  serve you well when you begin to experience a regular pay check. Just remember to pay yourself first.

Hope to run into you when you are retired and have nest egg to count on.

Grown Up Dan