Compound interest

Compound interest is like your money making its own money (interest), and then that new money also making more money (more interest), so your savings grow bigger over time.

With compound interest, your savings are like a snowball rolling down a snowy hill. When this snowball rolls downhill, it picks up more snow, growing bigger.

The longer your snowball rolls (the longer you save), the larger it becomes. This growth isn't just from the original snowball (your initial savings) but also from the snow (interest) it picked up along the way.

Compound interest means your savings grow faster and faster, turning a small initial amount into much more over time. Compound interest is best seen over long periods of time (10+ years), so it’s important to think about it now, rather than later so that you can get your snowball rolling!