Comments on: How to Teach Compounding Interest to Kids http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/ Money Saving Insights: Coupons, Smart Spending and Promotional Codes Mon, 13 Feb 2012 05:38:35 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Children of the Recession: How to Insulate Kids From Financial Fears http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-43453 Children of the Recession: How to Insulate Kids From Financial Fears Mon, 19 Jul 2010 09:02:00 +0000 http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-43453 [...] Start giving kids an allowance to budget their savings, spending and giving. Help them open a savings account and begin to teach the mechanics of a bank account – completing deposit slips, balancing a checkbook and explaining how compound interest works. [...] [...] Start giving kids an allowance to budget their savings, spending and giving. Help them open a savings account and begin to teach the mechanics of a bank account – completing deposit slips, balancing a checkbook and explaining how compound interest works. [...]

]]> By: Savings Accounts for Children http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-41171 Savings Accounts for Children Mon, 10 May 2010 13:04:59 +0000 http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-41171 [...] offer many great personal finance lessons such as the importance of saving money, the magic of compound interest, and the basic mechanics of [...] [...] offer many great personal finance lessons such as the importance of saving money, the magic of compound interest, and the basic mechanics of [...]

]]> By: Where To Save Birthday Money For Kids | Frugal Dad http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-29751 Where To Save Birthday Money For Kids | Frugal Dad Mon, 10 Aug 2009 19:02:04 +0000 http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-29751 [...] because they update accrued interest daily on their savings dashboard. It’s a powerful lesson on compounding interest for kids to see money being added to their bank account as they [...] [...] because they update accrued interest daily on their savings dashboard. It’s a powerful lesson on compounding interest for kids to see money being added to their bank account as they [...]

]]> By: Weekend Links :: A Year In Review | Simple Mom http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-15102 Weekend Links :: A Year In Review | Simple Mom Sun, 04 Jan 2009 07:56:28 +0000 http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-15102 [...] Frugal Dad :: How To Teach Compounding Interest To Kids [...] [...] Frugal Dad :: How To Teach Compounding Interest To Kids [...]

]]> By: Heather Maples http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-10831 Heather Maples Fri, 31 Oct 2008 11:04:05 +0000 http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-10831 Another great tool for teaching children about managing money and the value of being debt free is Cashflow for kids the game by the guy who did the series "Rich Dad Poor Dad." It's been really great with my children. Another great tool for teaching children about managing money and the value of being debt free is Cashflow for kids the game by the guy who did the series “Rich Dad Poor Dad.” It’s been really great with my children.

]]> By: What to Tell Our Children About the Economic Woes of Today | Frugal Dad http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-9754 What to Tell Our Children About the Economic Woes of Today | Frugal Dad Mon, 20 Oct 2008 11:01:13 +0000 http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-9754 [...] answer than others.  Preteens are old enough to understand some basic financial concepts, such as compound interest and primer discussions on debt.  However, any worries expressed in the household over finances and [...] [...] answer than others.  Preteens are old enough to understand some basic financial concepts, such as compound interest and primer discussions on debt.  However, any worries expressed in the household over finances and [...]

]]> By: BTGNow.net http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-6383 BTGNow.net Sun, 07 Sep 2008 18:49:17 +0000 http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-6383 What an interesting way to explain this to a young child! It's simple, but it gets the point across. I too, also found that this is a concept many adults are unfamiliar with, and certainly most younger people (teens, college students, etc..). This is a HUGE problem, because, as you say, starting young is very importnat when it comes to compound interest. For those who would like to know more about compound interest, including how it works, and why time frame matters, please check out the article I wrote: http://www.btgnow.net/2008/08/compound-interest-is-free-money-part-1-simple-vs-compound-interest/ Great post, I'll remember this trick if I ever have to teach kids! What an interesting way to explain this to a young child! It’s simple, but it gets the point across.

I too, also found that this is a concept many adults are unfamiliar with, and certainly most younger people (teens, college students, etc..). This is a HUGE problem, because, as you say, starting young is very importnat when it comes to compound interest.

For those who would like to know more about compound interest, including how it works, and why time frame matters, please check out the article I wrote:
http://www.btgnow.net/2008/08/compound-interest-is-free-money-part-1-simple-vs-compound-interest/

Great post, I’ll remember this trick if I ever have to teach kids!

]]> By: Weekly Frugal Blog Award - FrugalDad.Com | Financial Learn http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-6170 Weekly Frugal Blog Award - FrugalDad.Com | Financial Learn Sun, 31 Aug 2008 02:14:31 +0000 http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-6170 [...] How to Teach Compounding Interest to Kids [...] [...] How to Teach Compounding Interest to Kids [...]

]]> By: ING Direct Orange Savings Account: Best Place to Park Savings for Kids | Tip Dad http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-5832 ING Direct Orange Savings Account: Best Place to Park Savings for Kids | Tip Dad Mon, 18 Aug 2008 18:00:13 +0000 http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-5832 [...] The ING Direct Orange Savings account is one of the best online banking products around.  We opened an ING account for our family savings a few months ago and have enjoyed the features ING offers.  From a kid’s perspective, one of the most exciting features in ING Direct’s online interface is the “Interest Earned This Month” field that shows the cumulative interest accrued each day for the current month.  With most interest-bearing accounts you are forced to wait until the end of the month to save how much interest you earned.  Not so with ING Direct.  Their interest field updates daily, and is a great way to introduce kids to the power of compounding interest. [...] [...] The ING Direct Orange Savings account is one of the best online banking products around.  We opened an ING account for our family savings a few months ago and have enjoyed the features ING offers.  From a kid’s perspective, one of the most exciting features in ING Direct’s online interface is the “Interest Earned This Month” field that shows the cumulative interest accrued each day for the current month.  With most interest-bearing accounts you are forced to wait until the end of the month to save how much interest you earned.  Not so with ING Direct.  Their interest field updates daily, and is a great way to introduce kids to the power of compounding interest. [...]

]]> By: Alexia http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-4275 Alexia Wed, 09 Jul 2008 06:03:47 +0000 http://frugaldad.com/2008/04/11/how-to-teach-compounding-interest-to-kids/#comment-4275 man, this is the first I've heard about compound interest! sheesh! yes your daughter is lucky! =) I wonder how much interest my bank pays... I think it's about time I leave something in there! thanks! man, this is the first I’ve heard about compound interest! sheesh! yes your daughter is lucky! =) I wonder how much interest my bank pays… I think it’s about time I leave something in there! thanks!

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