HOW DO YOU FEEL WHEN YOU SEE THIS CHART!?

This is the question I ask my undergraduates when I pull up Page 1. Some of them are annoyed. I get it. Inequality feels bad. It feels unfair when a smaller group of Americans on the right side of the graph should have so much more than those on the left side. It’s a VERY natural human reaction.

But then I offer a change of perspective: What if inequality is a product of freedom?

What is instead of annoyance, they felt inspired by the possibilities?

This means wealth inequality exists, in part, because of LIBERTY and the freedom of choice. Remember the Declaration of Independence? Thomas Jefferson’s famous words: “Life, Liberty, and the PURSUIT OF HAPPINESS.”

In my Personal Finance class, I’m showing my students the path. They have permission to PURSUE wealth, but in a way aligning with their diverse values. They learn how to get rich by first revealing what rich means to them.

Earlier in the semester, we worked through how compound interest drives wealth growth over decades.

Now consider Page 2...Look closely at the secondary line. It tracks median age. It makes total sense: older cohorts are naturally wealthier because they’ve had decades for home equity and compound interest to work their magic.

At 20 years old, with 40 years of earning and investing ahead of them, they can CHOOSE to live below their means and CHOOSE compound interest.

What will YOU choose?