How I Learned About Interest

[2527]

When I was 11 years old, I had about $100 in a typical passbook savings account at the local bank.  We were moving from Pennsylvania to Delaware and my dad had opened a savings account in Delaware to accumulate enough money to pay cash for the new house, about $40,000.  (This was 1975.)  When we moved, we closed my savings account and had to open a new one in Delaware.  The one my dad had been using had about $100 left in it, so he had me sign over the check I got from the old bank to him and he re-named the ownership on the savings account to me.  In those days, interest was deposited every three months, and when that happened I went from having $100 to over $250 from the interest on the previously much higher balance. 

My dad was pissed and tried to get the money, but my mom insisted it was my account and I should keep it.

[dragoncar]

When I was 11 years old, I had about $100 in a typical passbook savings account at the local bank.  We were moving from Pennsylvania to Delaware and my dad had opened a savings account in Delaware to accumulate enough money to pay cash for the new house, about $40,000.  (This was 1975.)  When we moved, we closed my savings account and had to open a new one in Delaware.  The one my dad had been using had about $100 left in it, so he had me sign over the check I got from the old bank to him and he re-named the ownership on the savings account to me.  In those days, interest was deposited every three months, and when that happened I went from having $100 to over $250 from the interest on the previously much higher balance. 

My dad was pissed and tried to get the money, but my mom insisted it was my account and I should keep it.

It's a magical moment in every young child's life when they learn the benefits of stealing quarterly interest accruals from their father.

[arebelspy]

It's a magical moment in every young child's life when they learn the benefits of stealing quarterly interest accruals from their father.

Hah, that made me laugh.

It is a cool story though, when you can literally see how big of an impact interest on your Dad's larger stache made, hopefully inspiring you to save up that much or more.

[Bigote]

lol, Dragoncar. 


Great story, though. 

[kudy]

MY favorite part is the fact that your Dad was able to just stash away enough to buy a house with cash into a savings account... not sure over what time period, but it's an admirable accomplishment.

[Joet]

this reminds of a similar story:

I will title it:
How I learned to earn money by asking my Dad for some

[2527]

Yeah, I'm really not sure how he did it and I can't ask him now.  I know he grew up poor during the Depression.  He once said the first time he got brand new clothes was when he was drafted into the army for WWII.  Afterwards, he had a good job in the skilled trades, and taught himself how to invest in stocks and mutual funds. He and his mom raised 5 kids in a single-income household and he left an estate worth about $2M.  Can't say he retired early or chased his dreams, or anything like that, but he was stoic and took care of business.  He did enjoy taking his dog for walks and working in the garage.

MY favorite part is the fact that your Dad was able to just stash away enough to buy a house with cash into a savings account... not sure over what time period, but it's an admirable accomplishment.