Compound Interest for Kids
The single best money lesson you can show a child. Set the monthly amount, pick an age, and watch what time does to small, boring, consistent investing. Then read how to explain compound interest to a kid so the numbers stick.
The headline
If your 10-year-old invests $25/month, they could have $3,205 by age 18.
That's $2,400 contributed and $805 of growth at 7%/year.
Contributions Growth
Growth by age
Age 11Age 18
| Age | Total contributed | Balance |
|---|---|---|
| 11 | $300 | $310 |
| 12 | $600 | $642 |
| 13 | $900 | $998 |
| 14 | $1,200 | $1,380 |
| 15 | $1,500 | $1,790 |
| 16 | $1,800 | $2,229 |
| 17 | $2,100 | $2,700 |
| 18 | $2,400 | $3,205 |