Here is how compounding interest works in very simple words even the 6 years old can understand.
Ever heard of compounding interest? 🤔 Let’s break it down in simple words!
Imagine you plant a seed. 🌱 If you water it and give it sunlight, it grows! Now, let’s say that seed represents your money.
When you put money in a bank, they pay you interest—like the sunlight for your seed! 💰 But here’s the magic: you earn interest not just on your original amount, but also on the interest you earn over time.
So, if you earn $10 in interest this year, next year, you earn interest on that $10 too! It’s like your money is working for you while you sleep! 😴✨
The longer you leave it, the more it grows. Time is your best friend in compounding! ⏳
So, start saving early and let compounding work its magic! Your future self will thank you! 🌟
Sending Love and Ecency Curation Vote!
Follow Eceny's curation trail to earn better APR on your own HP. : )
Congratulations @hiveborgminer! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
Your next target is to reach 10000 upvotes.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCheck out our last posts: