How Money Grows

$1 million or a penny doubling every day for a month? Let's discover which choice is better.

Congrats! You won the lottery! 🎉 You get to choose between two prizes:

1) You get $1 million right now.

2) You get a penny that doubles each day for 30 days.

Which one would you choose?

After 30 days, $1 million is, well, $1 million 😪

On the other hand, a penny that doubled every day for 30 days becomes over $5.3 MILLION 😵

This is because of compound interest.

Compound interest is a superpower that makes your money grow faster and faster over time 💡

The earlier you start, the more compound interest can grow your money 💵

For example, if you started doubling that penny just 5 days earlier, it would have become $172 MILLION!

Stocks can grow from compound interest, so starting with small amounts can become LARGE over time.

Bloom offers a tool that shows you how much money you can make by investing -- try it out here: Potential Return

Test your knowledge

Compound interest is when. . .

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The longer you hold a growing investment, the more. . .

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Which one of these grows with compound interest?

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What's next?

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