TikTok's @pricelesstay spotlights the "astounding" power of compounding interest and high-yield savings accounts, which is "not really taught in school."
Do you want control over your money instead of it controlling you? That’s the inspiration behind Taylor Price’s popular TikTok page, and now she’s sharing a new piece of advice to maximize your financial freedom.
"So many people want to financially thrive and not just survive," Price said on "Cavuto: Coast to Coast," Wednesday. "See where your money is coming in, and where your money is going out. There are simple tips and tricks."
"For example, the national average on a traditional savings account is just about .45%, whereas a high yield savings account is just about 4 to 5%. So when you're taking a look at $1,000, that's the difference between earning $4.50 and $50," she expanded. "And as you know, the power of compound interest is astounding. And Albert Einstein says: compound interest is the eighth wonder of the world."
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Price has amassed 1.1 million followers and more than 21 million likes on TikTok, and her most popular videos break down topics like best side hustles for teens, how to get a good credit score and even how to become an owner of Facebook.
On Wednesday, the financial influencer emphasized the importance of "step zero" in money management, which begins with evaluating your budget.
"It takes a lot of empowerment because it's not taught in schools. This is not a requirement that's required in the United States, and that's why people like myself, creating platforms like @pricelesstay, is where people are going towards and taking those initial steps."
"It's all about the balance," she added. "When you are putting your money in a high-yield savings account versus a traditional savings account, people originally didn't have that $50 to begin with. Then they can use that money to go on trips, to go to Thailand, Costa Rica and have the best summer of their lives. And like I mentioned, financially thrive and not just survive."
Price’s words of wisdom come as a new survey from Prudential Financial found retirement savings among women is lagging behind their male peers. The survey also found that 55-year-old Americans are most financially unprepared for retirement.
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The TikTok influencer expressed hopes that her content helps lead younger generations to a more positive personal finance future.
"These are all things that, again, aren't really taught in school. And unfortunately for many people, it's generational knowledge that wasn't taught to begin with," Price said. "And so when people are looking at their elders, they're having a harder time to find this type of knowledge, which is why they're resorting to platforms like TikTok, YouTube, Instagram… to learn that knowledge over time."
