Both of us have young daughters. As a way of imparting financial wisdom on them at an early age, we asked both of them after they lost their first tooth which they would rather receive from the tooth fairy: $1 per tooth or a penny for their first and then double the amount for each successive tooth. After we informed that all children have 20 baby teeth, they both readily opted for the $20 option.
It was a costly mistake because their twentieth tooth would have been worth $5,242.88! Such is the power of exponential growth.
The lesson, which is a familiar to man, is more relevant than ever because society is poised to enter the “exponential economy.” There are a number of technological forces, including computer semiconductors, Internet bandwidth, data storage capacity, which are doubling anywhere from every 6 to 12 months, and they are expected to continue doubling for at least the next decade. For more, call me and we’ll send you a copy of the book Jump the Curve.
