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! ๐ŸŽ‰ 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 ๐Ÿ˜ช

On the other hand, a penny that doubled every day for 30 days becomes over $5.3 MILLION ๐Ÿ˜ต

This is because of compound interest.

Compound interest is a superpower that makes your money grow faster and faster over time ๐Ÿ’ก

The earlier you start, the more compound interest can grow your money ๐Ÿ’ต

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. . .

Choose an option

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

Choose an option

Which one of these grows with compound interest?

Choose an option

What's next?

Featured Lessons