One of my favorite things to do when I talk to investors is show them how compounding works.
The look on people's faces never disappoints. But demonstrating the rapid growth of dollars is more than just a parlor trick. It's one of the most important concepts that investors need to learn — the younger they are when they learn it, the better.
In a typical public school curriculum, children are taught geometry, trigonometry, fractions, decimals and algebra.
But when I show they how money can double in an investment, again and again during the course of their lives, they're still blown away.
Especially when I explain that time is a better friend to the investor than experience, connections, expertise, or even research.
And yet so few people seem to have a good grasp of the power of compounding. So I hit the streets of New York to spread the word!
WATCH: How to double your money
Check out 3 Things Experts Say to Do if You Win the Lottery via Grow with Acorns+CNBC.
See More Josh Brown:
- Josh Brown: How I explain the stock market vs the economy
- Josh Brown on why volatility shouldn't scare you — even close to retirement
- The biggest career risk 'The Reformed Broker' took
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.
