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Money & How It Works · Lesson 5
Compound Interest & the Time Value of Money
Money invested early grows exponentially, and understanding why is one of the most powerful financial advantages a young person can have.
Ages9–1213–1718–25Runtime to be confirmed
About this lesson
Compounding always looks broken at the beginning. A kid who saves for a month, sees almost nothing, and quits has behaved reasonably given what they could see. This lesson compresses the curve until they can feel it: money can earn money, and then the earnings earn money too. Time is the ingredient they have more of than anyone in the house.
What you’ll learn
- Doubling looks tiny at the start. That is its disguise.
- Divide 72 by the growth rate and you get the years money takes to double.
- The same curve runs backwards on debt, and it is merciless.
- Ten early years can beat decades of catching up later.
Skills your family will build
PatiencePlanningSelf-disciplineForesight
