Just earlier, while we were having dinner at the noodle shop, we talked about how prices have changed over the past 30 years. That conversation led us to topics like currency devaluation and interest rates.

Your youngest sister, still in third grade, said, “You can borrow money at a low interest rate and use it to make even more money.”

You asked, “Is there a kind of reverse time capsule where you put money in, and when you open it decades later, it’s actually worth more?”

Actually, such a thing exists in the real world — the S&P 500 is just like that: a time capsule that increases in value over time.

Later, I explained more to you about what a mortgage is, what stock pledging means, and how to borrow money properly — using it to generate value without falling into the trap of bankruptcy.

When you move idle money into something that creates value and are willing to take on some risk, the market often rewards you with returns much better than a bank’s interest rate. You were listening with great focus.

Your little sister is bright and quick — she catches on to these ideas easily. Your older sister, on the other hand, looked a bit confused, haha. But she’s cheerful and friendly by nature. I’ve always felt she might be great at sales in the future — maybe one day, she’ll complement both you and me in the workplace.

As we walked to pick up the car, I told you:

“There are two essential skills for living a happy life.

One is the ability to truly know yourself.

The other is the ability to master money.

You already have a solid foundation in knowing yourself, and you’re steadily growing. As for mastering money — I’ll teach you, step by step.”

Love always,

Dad