The definition of compounding interest is something they should be teaching to first graders. It is not a difficult principle to grasp, once explained. Compounding interest is interest calculated on initial principal, as well as on the accumulated interest from previous periods. Think of it as interest on interest. It’s an important financial lesson because it teaches children how money can make more money. The idea of taking your $5 allowance and saving it for … read more Kids Investing—Compounding