Compound Interest: 20 Questions Parents and Teachers Can Ask Kids About the Concept
by Team Sammy
Questions
Here are 20 questions that parents and teachers can utilize to assess children's understanding of compound interest while also engaging in meaningful discussions to teach them about this essential personal finance concept.
What do you understand by the term "interest"?
Can you explain what "compound interest" means in your own words?
How is compound interest different from simple interest?
Why do you think compound interest is important?
Can you give an example of compound interest in everyday life?
How does compound interest help us save money over time?
Do you know any ways compound interest can be used to grow savings?
How can compound interest affect borrowing money, like taking out a loan?
Can you explain the concept of "interest rate" and its role in compound interest?
What factors do you think influence how much compound interest is earned or paid?
How do you calculate compound interest?
What do you think would happen if you saved money regularly with compound interest versus not earning any interest at all?
Can you think of any examples where compound interest might work against someone's financial goals?
How might understanding compound interest help you make better financial decisions in the future?
Do you think it's better to start saving early or later when it comes to compound interest? Why?
How can you use compound interest to plan for long-term financial goals like buying a car or a house?
Have you ever seen compound interest in action, like in a savings account or investment account?
What are some ways you could explain compound interest to a friend who doesn't know about it?
How does compound interest relate to the concept of "time value of money"?
Can you come up with a scenario where understanding compound interest could help you solve a real-life problem or make a decision?
Your Thoughts
We value your input!
Share one or some of your suggestions on questions parents and teachers can utilize to assess children's understanding of compound interest while also engaging in meaningful discussions to teach them about this essential personal finance concept.
We warmly welcome you to join Sammy Rabbit in making the world better for kids and families by initiating conversations with them about money. Whether you're starting or continuing, today is a Sammyriffic day to dive in and HOP the MONEY TALK AHEAD!
Let's get kids and families financially literate!!!
More For You - Sammy Articles and Resources
A Parent's Guide and Map to Money Talks with Kids, Question 2
Have a conversation with kids about the money song: Get in the Habit
Parents Have Kids Start a Dream Big Journal (List of Benefits)
How You Can Help Sammy Rabbit Advance Kids and Families Financial Literacy Levels