Money Lessons – Compound Interest – the most powerful force in the world!

Einstein called compound interest the 8th wonder of the world and the most powerful force in the world.

DollarDan is learning that compound interest could be the secret to growing his dollars and making him rich.

What is compound interest, DollarDan asked Einstein?
“Think of $100 as a small snowball. Think of snow on the ground as interest and think of a long long snowy slope as time. The longer the $100 snowball rolls down that slope and the more snow (interest) it picks up the bigger it will grow. If you leave the $100 snowball and all the snow (interest) on that snowball and don’t take any of the snow (interest) away it will just keep on getting bigger and bigger”.

Your $100 in 30 years time could be worth $100 000.00. If you add $100 dollars to that snowball every month, your original $100 could grow to $400 000.00

“So for compound interest to work you need your own money (doesn’t have to be a lot), a lot of time and interest”, DollarDan sums up.