How Compound Interest Works
The gist
Compound interest means you earn interest not only on your original money but also on the interest that money has already earned.
Explain like I'm 5
It's like planting a tree that grows fruit, and then the fruit grows more trees that also grow fruit, so your garden keeps getting bigger all by itself.
Big picture
Understanding compound interest is key to growing savings and investments over time, making it a powerful tool for building wealth and planning for the future.