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Interest: A Kid-Friendly Money Dictionary Definition
Updated

Interest: definition for kids from Sammy Rabbit’s kid-friendly money dictionaryWord and Category

Word: Interest

Category: Growth Word

Related Definition: Savings Account

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

Sammy Says:
“Interest helps your money grow—
Save it, wait, and watch it glow!”

Money Habit Connection

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.

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.

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 Parents and Teachers Can Ask 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.

Related Standards Aligned Lesson Plans

  • Coming soon

Keep Kids and Families Learning

  1. 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.

  2. 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!

  3. 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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