Concept:
Compound interest means earning interest not only on your original money, but also on the interest that money has already earned.
This creates a “snowball effect” — your savings grow faster the longer you leave them invested.
The earlier you start, the more powerful compounding becomes.
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Example Illustration:
You save $100 at 5% interest.
• Year 1: You earn $5 (total $105).
• Year 2: You earn interest on $105, not just $100 → $110.25.
• Year 3: $115.76 … and it keeps growing!
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Key Sign Language Terms (linked to examples):
• Interest (ASL)
•Grow (ASL)
• Time (ASL)
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One-Sentence Summary:
Compound interest is money that earns more money — and grows bigger with time.