Imagine this:
You have a magic piggy bank.
Every night, the piggy bank gives you more money — not just from what you put in, but also from the extra money it gave you before!
Let’s say you put $10 in the piggy bank.
Tomorrow, it gives you $1 extra.
Now you have $11.
The next day, it gives you a little more, not just from your $10, but from the $11!
So now it gives you $1.10 and you have $12.10.
And every day, the magic keeps going…
Your money makes more money… and then THAT money makes even more money!
🍭 Let’s Try with Candy!
You have 10 candies 🍬.
Tomorrow, you get 1 more candy for free (because your candies are magical).
Now you have 11 candies.
Next day, your candies make even more candies — now you get 1.1 candies!
Soon, you’ll have so many candies you don’t know what to do with them! 😄
🎉 That’s Compound Interest!
It’s like a snowball rolling down a hill —
It starts small, but it grows bigger and faster the longer it rolls.
💡 Grown-up Words (For When You’re a Bit Older)
Compound interest means:
You earn interest on your money — and also on the interest you already earned.
The longer you leave it, the more it grows — like magic.
