Interest (Simple and Compound)

Have you ever planted a tiny, tiny seed. You put it in the soft dirt, give it some water, and watch it grow into a big, bright flower. Or maybe you waited very patiently for a yummy cookie and got an extra one. I am like that little extra bit of magic. I help things grow bigger and bigger all by themselves. I am a secret helper that makes your savings grow. Hello there. My name is Interest.

A long, long, long time ago, way before there were cars or even castles, around 3000 BCE, farmers worked in big, sunny fields. Sometimes, a farmer needed more seeds to grow yummy food for their family. A kind friend might lend them a big bag of seeds. The farmer would plant them and watch the little green sprouts pop up. When the plants were tall and full of yummy food, it was time for the harvest. The farmer would give the bag of seeds back to their friend, but they would also add a little extra scoop of seeds. That extra scoop was me. It was a happy 'thank you' for helping them grow a whole field of food.

Today, I don't just help seeds grow, I help money grow too. I am your money's best friend. When you put a shiny coin into your piggy bank, it’s like planting a special money seed. If you take your money to a big bank building, I get to visit it. As a thank you for saving your money, I add a little extra money to it. Slowly, slowly, your money grows bigger and bigger. Soon you might have enough for a bouncy ball, a colorful book, or a fun trip. I love helping you save for your happy dreams.