The time value of money is one of the most important concepts in personal finance. Use the visual demonstration provided in this Active Learning Tool to illustrate the power of compounding interest and the time value of money. The demonstration uses colored jelly beans and an interactive graph to show how money can “magically” grow with interest. There is a video tutorial available for this Active Learning Tool.

Cross-curricular keyword: Math

Lesson Objectives

  • Understand compounding interest

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