The Power of Compound Interest

Compound interest is such a pivotal factor in the value of your money over time. That important, we made a classroom poster to explain its effect.

Compound interest is one of the most important concepts to understand in order to manage your personal finances & increase your wealth over time.

It helps you to earn a higher return on your savings & investments. However, it can also increase the amount you pay back when you’re paying interest on a loan.

Imagine rolling a snowball, the more you roll it, the bigger it gets, effectively building upon itself. Just like a snowball, compound interest is interest earned on money that was previously earned as interest.

The poster defines the concept of compound interest and provides an example of its impact over time.