AIBU to think compound interest is surprisingly powerful over time?

[shocked2026]

To think that compound interest is WILD? I know it works negatively with mortgages etc but also over time with tiny amounts of money it can grow exponentially. I realise that many people probably know this already but I didn’t realise how much of an effect it can have!

I think this should be taught at school. Scrap making a macrame plant pot holder and do personal finance classes.

YANBU.....I continually try to impress the benefits of compound interest on people at work whilst encouraging them to put money into their pensions!

I was showing a colleague the value of £1 at retirement age when invested at age 1, 30, 45 and 55......it's really quite impressive if it's something you've not thought about before!

(I should add I had been asked my opinion on my colleagues finances after she'd had a recent pay rise as I'm an accountant.....I wasn't just monologuing at her 😊)

They do it in maths.

I didn’t but I was in spud classes.

I also think it should be taught more! I am reasonably intelligent and good at maths but I had no idea that it was so powerful.

If you plug the numbers in for investing a few hundred pound a month over a long period of time (20 year ish) it is mind boggling!

If you invest £1 at 3% interest for 30 years, you'll have £2.43.

Am I missing something? What's the excitement?

It’s basic percentages. They do teach that.

Stop being so deliberately obtuse.
Investing £200pm over 30 years at 5% is £163,000. And 5% return is quite low if it’s a global tracker but say we’re adjusting for inflation etc. I’d say that pretty good !

Yawn

It literally is taught at school, look at the GCSE maths formula sheet. It's on every exam.

Funnily enough, teenagers don't give a shit!!

As is said every single time this comes up, it IS taught in school.

I mean, sure, if you've got £200 spare each month to save, that's great. And if you can find a savings account offering 5%, also great

I have neither of those, so I guess it's not so powerful for me?

In any case, I was not being obtuse, but replying to the post at 21:17.

It is taught in school! I was definitely taught about it.

Maybe it is taught but probably not in a way that feels so tangible for teenagers. At the grand old age of 32 I realised this stuff and I wish I’d started 10 years ago!

I mean the clue is in the name!

Again with the yes it's taught linked explicitly to banks, mortgages, savings and debt.

Again, teens don't give a shit! It's 10 years away (minimum) for being relevant for most. The majority of us forget things 10 years later.

Yes it is taught using money as an example. What is more tangible to kids than having lots of money that they don’t have to work to generate?

https://qualifications.pearson.com/content/dam/pdf/GCSE/mathematics/2015/teaching-and-learning-materials/gcse-mathematics-1ma1-exam-aid-1h2h3h-june2025.pdf

It is taught at school

You think explaining compound interest in terms of pensions makes it tangible to teenagers?!

Tell me you’ve never met a teenager without telling me you’ve never met a teenager…

Ok. It’s clearly taught in schools. Given how may adults have no idea about pensions etc I still think that financial literacy needs to be improved

It's taught at school with zero context.

Proper investing and financial education doesn't exist so it means nothing to them.
The times is campaigning for change and real investment knowledge

Op I’d give up the grumpy lot are on shift, I totally get your excitement and point.

Yes maths is taught at school but not how it directly impacts finances and how to manage money growing up, if you come from a poor background or where parents don’t focus or talk about money you really can get to your 30s without fully understanding this stuff.

It literally is taught in context! Of course kids aren't really listening to something that feels miles away time wise, and out of reach money wise for many.

Yeah I am coming across grumpy, but I was hoping to be convinced.

The OP mentioning a global tracker - that sounds like money that can go down in value as well as up? So it can't be guaranteed that you'll get 5% for 30 years, can it?

It's not taught in context and many maths teachers themselves s don't invest !