The idea
Here's the magic trick that builds wealth: your money earns money, and then THAT money earns money too. This is called compound interest. At first it grows slowly, but over many years the snowball gets huge. The secret ingredient is time — the earlier you start, the bigger it grows. ❄️
Words to know
- Compound interest
- When your money earns money, and then your earnings start earning too — growth that snowballs over time.
- Annual return
- How much your money grows in one year, shown as a percent (like 10% a year).
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In the full lesson
- 1Play with the numbers
Vine has 107 lessons like this one, each written three ways so a 7-year-old and a 17-year-old both get a version that fits.
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