Hi everyone, I'm Mrs. Nolan, and today we're gonna talk about interest. Interest can be your money’s best friend—or its worst enemy. So, let’s break it down in simple terms.

When you save, the bank actually pays you interest for letting them hold your money. But when you borrow, you're the one paying interest—it's the cost of using someone else’s money.

There are two main types of interest.

Simple interest is paid just on your original amount. For example, if you save $100 at 5% for 3 years, you’ll earn $15 total.

Compound interest is the real game-changer. You earn interest on your interest. That same $100 at 5% compounded yearly grows to $115, then $120.25, then $126. Pretty cool, right?

Here’s why this matters: If you’re borrowing, especially with high-interest credit cards, it can snowball into serious debt. If you’re saving, starting early means compound interest works in your favor—and grows your money while you sleep.

So, here’s the big takeaway: make interest work for you, not against you. Start saving early, stay smart about borrowing, and let time do the heavy lifting.

Interest Lecture