Understanding how compound interest works is probably the single most important financial lesson you will ever learn.
If you put your money in a savings account at the bank, it doesn’t just sit in an underground vault; the bank uses your money for all sorts of investments. They even lend it to other people. For this privilege, they pay you interest. This is money you earn by doing…well nothing.
Further reading
Compound Interest: Your money’s superpower
Source
Wealth 101: Visualizing the power of compound interest
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