Make your "Savings Bots" work for you!

Explaining compound interest is strangely difficult. Not because it is difficult to understand technically, but because it is hard to imagine intuitively. With my undergraduate students and since AI is all the rage, we use the "savings bot" metaphor. How could there be "little savings bots" running around working for me?

Well, they are! And the more you learn to orchestrate these bots, the more financial freedom you will create for yourself.

Compound interest's reality works like this:

• The first quarter has little wealth growth.

• The investments we make in the first quarter start to accelerate in the 30s and 40s.

• The investments we make in the first quarter have a MASSIVE impact on the wealth growth in the last quarter.
  

I encourage my students; they have a massive wealth-building war chest. It is not so much the amount of income they will earn; it is the over 40 years of compounding they will experience before they need the money!

If you have a Finance background, please share! How do you describe compound interest?