03
Apr
16.1 Timeline – Compound Growth Over Time
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Lesson Learning Objectives:
- Compounding – See how earning interest on interest turns a small deposit into a much larger sum over time.
- Start Early – Understand why time in the market matters more than how much you invest each year.
- Regular Investing – Learn how consistent contributions and dollar-cost averaging smooth out risk and accelerate growth.
- Simple vs Compound Interest – Compare simple interest (flat growth) with compound interest (exponential growth) using real-life examples.
Key Lesson Information:
- Interest on Interest – Compounding lets your interest earn its own interest, creating exponential growth.
- Time Is Power – Beginning sooner means more years for compounding, often doubling results versus starting late.
- Pay Yourself First – Automate savings so regular deposits can compound quietly in the background.
- Consistent & Calm – Use dollar-cost averaging to invest steadily, reduce risk, and keep your money snowball rolling.
