The Growth That Starts Growing
In year two, your earlier growth can begin earning growth of its own.
Learning objectives
- Model compound growth
- Explain why time affects outcomes
- Distinguish illustration from guarantee
Vocabulary
- Compound
- When your growth also starts to earn growth over time.
- Growth
- Getting bigger over time; money growth is never guaranteed.
- Return
- The money an investment gains or loses over time.
- Risk
- The chance that something might go wrong or lose value.
- Illustration
- A pretend example that shows an idea, not a real promise.
Materials
Minute-by-minute flow
6′
Hook
Teacher does
Build a physical coin snowball.
Students do
Predict later rounds.
12′
Model
Teacher does
Compare simple and compound examples.
Students do
Track what earns the next round.
25′
Growth lab
Teacher does
Assign different starting times.
Students do
Calculate or use supplied tables.
10′
Reality check
Teacher does
Introduce uneven returns and risk.
Students do
Explain why a smooth chart is illustrative.
7′
Exit
Teacher does
Ask why early coins matter.
Students do
Use time and growth in the answer.
Check for understanding
Can the learner explain growth-on-growth without promising a result?
Exit ticket
Compound growth means… It is not guaranteed because…
Support
Use pre-calculated growth cards.
Stretch
Compare fees or delayed starts.
Home connection
Use the Little Finance Heroes compound tool with a grown-up.