How to explain compound interest to kids - MoneySense

How to explain compound interest to kids

Here’s an easy way


It’s how your savings grow faster the longer you leave them alone. Whatever you save—whether it’s in an RESP, a savings account or an RRSP—earns interest not just on what you put in, but also on the money it picks up along the way.

Compound interest

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More tips on raising money-wise kids:

Ages 0 to 6: My first money moves »

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Ages 13 to 17: Big kids, bigger budget »

Ages 18+: Preparing to launch »

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