Thoughtful Money with Adam Taggart · Sunday, August 30, 2026
Adam Taggart emphasizes that compounding, while beneficial for savings, can work detrimentally with debt, acting in reverse. He criticizes the education system for not teaching this, noting how credit card offers are readily available to young adults, leading them into debt traps where interest accrual makes it difficult to repay principal.
“Now, what's really important to remember is it can work for you, like in the example I just mentioned, or it can work against you, right?”
“So if you have debt, then debt has an interest. And every year you've got to pay, let's let's say 8% on your debt. It's exactly what I showed you just working in reverse.”
“And this is what I think is really criminal, is we don't teach this to kids. In our school system.”
“So what happens? Well, they very quickly find themselves in a hole.”