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Teaching Kids Money and Compound Interest

First Lesson in teaching kids about Compound Interest is…

 It’s Money Time!

Time = Money – The more time you have the more money you can make… right?

That’s the first lesson in compound interest.

  • One Dollar invested daily for 10 years at 7% is worth $5,396.01
  • Original investment $3,650.00
  • Compound interest earned $1,746.01
  • One Dollar invested daily for 16 years at 7% is worth $10,891.61
  • Original investment $5,840.00
  • Compound interest earned $5,051.61
  • One Dollar invested daily for 20 years at 7% is worth $16,010.79
  • Original investment $7,240.00
  • Compound Interest Earned $8,770.79

Play with this calculator from 

Yes… there is risk in the stock market, but walking outside is risky, driving a car is risky! Eating junk food is risky but we do it daily!

Not investing is even more risky, because you are guaranteed to have nothing!

Many of you are probably worried… how can I invest, I don’t know what, where, when or how!

Imagine if you invested 1 dinner a month?

Family of four is at least $30 – $50… invest that instead!

Have a healthy P&J for dinner and invest the rest.

How about… forget your kids and do it for yourself!

Why am I saying this??

About 15 years ago we took our life savings and invested it with an idiot!

He lost it all!

So we had to start all over again, and I did exactly what I am telling you to do, and I have doubled my money.

I started out with one stock at a time, investing only the extra money we had, and I have taught my kids to do the same.

When I thought about buying something, I thought again and saved it for investing instead.

How did I do it?


  • Start with as little as $30.
  • Look around your house at items you buy daily.
  • Go into Sharebuilder and look up that company.
  • Read about it, and make a decision to buy or not to buy their shares.
  • Listen to your gut, not Joe down the street.

You can do this! I know you can, because if I can anyone can!

Better yet they are giving you $50 bonus just for trying it out.

Go to

You will see a Sharebuilder link in the right bottom side, click on it and you will see the $50 bonus.

It’s free to open; no minimums and you can make it automatic. (when making a trade there is a small fee)

Take a Chance You Deserve IT!!!

I hope you take a chance and do this for yourself.

It’s a scary thing to invest your money, I know that, but if you spend your money on a dinner, extra pair of pants or a toy your child does not need it’s gone forever also.

You have the extra money to invest in your financial future.

That dinner, pair of pants or toy will be long gone in 5 years, but your investment just may grow! If you do lose money in the stock market, at least you’re investing money you wouldn’t have anyways.

You have to take educated risks, the more you do this with small amounts of money the more comfortable you will become.

$20, $30, $40 invested is easy, what’s hard is investing hundreds or thousands at a time.

Remember when you invest small amounts, you are also practicing dollar cost averaging.

Below are a couple activity sheets for teaching compound interest to the kids.

The Rule of 72 click on picture below to download the activity








Million Dollars or a Penny Doubled







For more activities click here Money & Me Activity Sheets for Kids!



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