NOTE to parents, teachers, and educators of every kind: Use this definition as a simple, kid-friendly teaching tool. Click this link to view the full index of current money terms and definitions, and learn how to use the Sammy Rabbit dictionary to support teaching and learning.
Word and Category
Word: Interest
Related Definitions: Compound Interest | Savings Account
Category: Growth Word
What this category means: Growth words explain how money can increase over time. These words help children understand that money can grow when it is saved and given time.
Definitions
In Simple Words
Interest is extra money you earn when you save money in a bank.
It’s like a small reward for saving and being patient.
A Little More Grown-Up
Interest is money a bank adds to your savings over time when you keep your money in an account. The more money you save—and the longer you save it—the more interest you can earn.
Context Clues
Note: You can find the word “interest” in Sammy Rabbit stories, songs, and activities when kids learn that saving money over time can help their money grow.
Sammy Says Sentences
Sammy Says: “Interest helps your money grow. Save money, wait, and watch the interest you earn grow!”
Silly Sentence
My money threw a party and invited interest to bring extra coins!
Serious Sentence
Interest is extra money you earn by keeping your money saved in the bank.
Rhyming Sentences
Silly Rhyming Sentence:
I saved my cash and waited tight—interest showed up overnight!
Serious Rhyming Sentence:
With time and patience on your side, interest helps your savings rise.
Money Habit Sentences and Connection
Money Habit Sentences:
Saving money at the bank can earn interest, and saving often is a smart habit. Learning how interest helps your money grow can turn saving into a great habit.
Share with kids:
Understanding interest encourages children to save early, save often, and be patient. It teaches that good money habits today can lead to bigger rewards tomorrow.
Examples of Earning Interest
Saving money in a savings account
Leaving money in the bank over time
Adding deposits and letting them grow
Examples of What Is Not Interest
Spending money
Money you earn from doing chores
Money given as a gift
Related Money Words
Save • Bank • Savings Account • Grow • Time
Opposite Money Words
Spend • Shrink
Questions for Kids
Ask your child or student: “Why do you think waiting can help your money grow?”
Remember
Interest rewards saving and patience—two great habits for growing your dreams.
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Related Standards Aligned Lesson Plans
Coming soon
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