Word and Category
Word: Compound Interest
Category: Growth Word
Related Definition: Interest
What this category means:
Growth words explain how money can increase over time. These words help children understand that patience and good habits can make money grow faster.
Definitions
In Simple Words
Compound interest is when your money grows—and then the growth grows too.
It’s like earning interest on your interest.
A Little More Grown-Up
Compound interest happens when interest is added to your money and then future interest is earned on the new total. Over time, this can make savings grow much faster.
Context Clues
Note: You can find the phrase “compound interest” in Sammy Rabbit lessons and songs when kids learn how saving early and waiting can lead to big results.
Sammy Says
Sammy Says:
“Compound interest is magic math—
Save early and stay on the path!”
Money Habit Connection
Understanding compound interest encourages children to start saving early, stay consistent, and be patient. It shows how small habits can lead to big outcomes.
Silly Sentence
My money made money, then threw a party and made even more money!
Serious Sentence
Compound interest helps your savings grow faster over time.
Rhyming Sentences
Silly Rhyming Sentence:
My money grew, then grew again—
Compound interest for the win!
Serious Rhyming Sentence:
When savings grow and growth earns too,
Compound interest works for you.
Examples of Compound Interest
Saving money over a long time
Leaving interest in your account
Adding deposits and waiting
Examples of What Is Not Compound Interest
Spending money
Earning money from chores
Taking money out right away
Related Money Words
Interest • Save • Time • Grow • Patience
Opposite Money Words
Spend • Rush
Questions Parents and Teachers Can Ask Kids
Ask your child or student:
“Why do you think starting early helps compound interest work better?”
Remember
Compound interest rewards saving early, saving often, and waiting patiently.
Related Standards Aligned Lesson Plans
Coming soon
Keep Kids and Families Learning
Kids, families, and schools of every kind can enroll in Sammy Rabbit’s Money School with a FREE, PREMIUM or Group Discount Money School Memberships, giving learners access to engaging, age-appropriate financial education resources.
Parents, teachers, and community leaders are invited to explore the resources and teaching tips available on SammyRabbit.com, starting with award-winning financial educator Sam X Renick’s article series, Money Lessons Parents Should Teach Kids!
Schools, community organizations, employers, and partners can learn more about Sammy's Dream Big Financial Education curriculum, a flexible, standards-aligned approach designed to help children build strong money habits, confidence, and lifelong skills.
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