Fun With Pennies Fun With Pennies (By Mitch Mortensen Investment Advisor)As a father of four, I’ve made a habit of trying to teach my children life lessons that they can take with them when they grow up and leave the nest. I frequently use old catchy sayings, interesting facts, and fun games to try and keep their attention for more than a minute. While I try to teach life lessons of all subjects, financial lessons are my bread and butter. After all, I am a financial advisor. Below are two of my favorite lessons that I hope sink into their heads before they are grown up.Lesson #1 – A Penny to a Million: So I ask my children, would you rather have 1 million dollars right now, or would you like me to give you 1 penny today and then double that amount each day for a month? Undoubtedly the kids (and most adults) will almost always take the 1 million dollars. However, believe it or not, if you double a penny over 30 days, you will end up with over $5 Million! If you take it to 31 days it makes it almost $11 Million! They never believe me until I sit down with them and write out on the calendar “day #1 = 1 penny, day #2 = 2 pennies, day #3 = 4 pennies, etc”. Then I tell them to always remember the importance of compound interest and how important patience and time can be with some savings and investments.Lesson #2 – A Penny Saved is NOT a Penny Earned: We’ve all heard it before. A penny saved is a penny earned. Even my 5 year old understands this concept, but the reality is that a penny saved is way more than a penny earned. A penny earned requires taxes to be withheld. For example, if you typically pay 25% in taxes, you are really only getting 75% of a penny when you earn it. Furthermore, a penny earned is only earned after work is performed possibly weeks after the work is done. Lastly, a penny earned may not be a sure thing in the future. You may lose a job, face disability, or earn less. So a penny saved can also provide more security.If you or someone you know want to learn more lessons about finance, money, and investments, consider talking to a financial advisor that is willing to sit down and answer your questions. Mitch is a retirement expert for Heaton Financial, PC. Contact Mitch to schedule a FREE financial risk analysis 435-272- 4362.This article was published in the Senior Sampler of Saint George on January 5, 2017. Click Here for a link to the actual article.