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The Treasurer · № 08

Earned Interest

Held money in an account that paid real interest (high-yield savings, CD, money market) for 6+ months and can explain how much you earned and why.

The idea

The first interest dollar feels invisible. Show your kid the rate, the formula, the projection. $1,000 at 4% earns $40 a year for doing absolutely nothing. That math is what flips compound interest from textbook abstraction into a tool they actually use. Make the example their real balance in their real account. Nothing else makes the concept click as fast or as permanently.

Steps
  1. Open a high-yield savings, CD, or money market. Real interest only.
  2. Look up the formula. Run it on the actual balance.
  3. Hold for 6+ months.
  4. At month 6, explain how much you earned and why.
What counts

6+ months in an interest-bearing account with documented earnings. A screenshot of the interest entries is plenty.