Comment by triceratops 4 days ago
> the application to real life practical financial scenarios was definitely not done
Of course it was. You can't teach compound interest without referring to money or banks. That's the whole point of it. Otherwise it's just multiplication.
5 years is "get rich quick!" scam territory. The real aim is to manage finances for the rest of your life which may or may not be 50+ years, but will definitely be in double digits if you're of an age for thinking of managing your savings. If your horizon is shorter than that, you're essentially on your deathbed already.
5 years isn't a reasonable timespan. Compounding over the course of a 35 year career, earning a modest wage, will fund a comfortable 20 year retirement. If that's "bullshit" for most people then too bad. Good things come to those who wait etc.
A 20 year retirement on the back of 35 years of working means dying before you're 80?
Given current life expectancy, and particularly if you find a life partner, the chances of at least one of you surviving through at least 85 are pretty high (like above 60% for the US).
I assumed that a "real" career and substantial savings, after paying off debt, begin at age 30. And the 20 year retirement was me being conservative. In truth, saving only 20% of your take-home for 35 years will be more than enough for 40 years.
It... is just multiplication. And can't talk about GP's experience, but I can tell you that going through scientific schooling and engineering schools in the French system you'll learn exactly how to calculate the math and never have a single example such as mentioned above.
We're here to build bridges, not count stashes of money after all!
You'd probably get those if you went through "economic studies" (which is a different track and where math includes a lot more statistics even in high school).