Re: Financial Literacy
by on 14/12/2025, 21:31:23 UTC
Is she right to choose the $1000/week? Let’s hear the arguments. I’ll start. Look at her age. She’s 20 years old. Seems healthy and has a good chance to live a long life. By 60 years old, she has already received over $2 million which beats the $1 million. But some people would argue that getting the $1 million can be invested and grow bigger. For some though, the $1000 is a good addition to their life and could provide financial stability even more. If she has control, she can even DCA the half of $1000 every week into bitcoin and watch it grow. What are your thoughts?
I know she must have taken this decision out of context and will most likely want to review it as she grows older. Taking only 1,000USD weekly will take her about 19 years to finish collecting the money. Now, you don’t expect that the value of this money will be the same for your expenses weekly from now till in the next 10 years even, inflation could have sets in and may not be enough to cater for the expenses again.
As she grows older, she’ll get to have more things on her scale of preference, maybe even children and families to cater for, which may warrant that amount not being enough. Medical emergencies can come up for her or a very close family member which may also warrant her to take from there to settle the bills which $1000K weekly won’t be able to sort out.
There are a lot of things that may push her to actually want to opt into withdrawing the whole money before she gets to finish collecting them all on a weekly basis. I would commend her though for this first step, this will help her to plan better ahead while keeping her bills fit into $1K weekly for now, she won’t have the room to spend it lavishly as she wants if she’d collected everything at once.