In this lesson, students will explore the importance of compound interest as it applies to long-term savings. Students will examine factors that influence compound interest and use them to formulate their own savings strategies. They will also learn how to use the Rule of 72 to quickly estimate how long it takes for an investment to double in value.
In case you haven’t heard, compound interest is the best. You may remember it as an equation you had to memorize for math class, but it’s so much more than that. It’s the concept that powers all sorts of savings and investment products and, over time, allows you to turn your money into, well, more money!
Everyone has some idea of what it means to be money smart—however, whether or not you’ve acted on that idea is a different story! There are a few nuggets of financial wisdom in particular that are echoed so many times in articles, blog posts and TV segments that they become clichés, albeit practical ones. Curb your spending. Pay off your debt. Contribute to your savings early and often. Compound interest is your friend. Start saving now and watch your money grow.
Fox Communities Credit Union is a full-service, not-for-profit financial institution serving members throughout Eastern Wisconsin, including Appleton, Green Bay, Oshkosh, Manitowoc, and Milwaukee.