Making Your Money Grow

So you've decided to save money for emergencies and have even thought about investing some for the future. Being a smart saver and investor is all about earning the most for your money, and being able to access it when you need it for life's little surprises like that car repair or the visit to the vet. Setting up a savings account is a great way to be prepared for emergencies and make money on your money.

Once you start looking around at the options for where to put your savings, one of the most common numbers you'll see is the interest rate you'll earn and how often it's compounded. What does that mean?

If you want to earn the most interest on your money, it's important that you understand how interest works, and how the bank calculates it. It can make a huge difference over time to your financial goals.

Essential Question

• How does time and interest actually work to earn more money for individuals who save or invest money?