The Power of Compound Interest

One of the best ways we can teach our kids about money and money management is through pocket money. Introducing kids to a healthy savings plan from their pocket money can make a real difference to their future and give them saving skills that can last a lifetime.

Compound interest – have you heard of it?  ‘Compound interest is like double chocolate topping for your savings. You earn interest on the money you deposit, and on the interest you have already earned – so you earn interest on interest’.*

Imagine the head start your child could have upon leaving school!  From as little as $2.85 per day you can turn a deposit of $20 per week in to a healthy $25,000 savings account by the time your child turns 18.  By understanding the power of compound interest you can grow what change you have in to a happy head start for your family.

For more information regarding compound interest, head to Money Smart or to Money Saver who have five great tips on how to teach kids about money.

If you want to find out how to start saving today – contact Liberum Financial today on 07 3233 6470 to help make your money work for you.

* Money Smart

** (based on the average interest rate February 2017)