How does saving money grow over time?
Money's Time Magic
How does saving money grow over time?
You put ten dollars in a jar. A year later, you open it, and guess what? Still ten dollars. But put that same ten dollars in a bank account that pays interest, and something almost magical happens — it grows, all by itself, while you sleep.
Interest is the bank's way of saying "thank you for letting us hold your money." They pay you a little extra — maybe fifty cents for every hundred dollars you save, every year. It doesn't sound like much. But here's the secret: next year, you earn interest on your original money AND on that fifty cents you already earned.
