How Does It Work? Money, episode 3: Saving and the Magic of Compound Interest (Why waiting makes money grow). Financial literacy for kids aged 8 to 12 and their grown-ups.

0:00 Intro
0:23 The marshmallow test
0:52 Needs, wants and a budget
1:18 Pay yourself first
1:44 Interest on your interest
2:12 Benjamin Franklin's 200 year gift
2:42 The rule of 72
3:10 Money words recap

Money words in this episode: Delayed gratification, Budget, Savings, Compound interest, Long term, Rule of 72

All episodes: https://howdoesitwork.fullstackpartner.com

Image credits (Wikimedia Commons):
"Walter Mischel Stanford Psychologist.png" by RishitaSharma2106, CC BY-SA 4.0, https://commons.wikimedia.org/wiki/File:Walter_Mischel_Stanford_Psychologist.png
"Marshmallows.JPG" by Smith609, CC BY-SA 3.0, https://commons.wikimedia.org/wiki/File:Marshmallows.JPG
"White Marshmallows.jpg" by John Morgan, CC BY 2.0, https://commons.wikimedia.org/wiki/File:White_Marshmallows.jpg
"Westside Market in Manhattan, NYC IMG 5615.JPG" by Billy Hathorn, CC BY-SA 3.0, https://commons.wikimedia.org/wiki/File:Westside_Market_in_Manhattan,_NYC_IMG_5615.JPG
"Stop&Shop.jpg" by NYC Guru, CC BY-SA 4.0, https://commons.wikimedia.org/wiki/File:Stop%26Shop.jpg
"Kosher Cajun Metairie Louisiana Dec 2018 02-cropped.jpg" by Infrogmation, CC BY-SA 4.0, https://commons.wikimedia.org/wiki/File:Kosher_Cajun_Metairie_Louisiana_Dec_2018_02-cropped.jpg
"Sparschwein Haspa02.jpg" by GeorgHH, Public domain, https://commons.wikimedia.org/wiki/File:Sparschwein_Haspa02.jpg
"Earthen pot 02.jpg" by Krish Dulal, CC BY-SA 3.0, https://commons.wikimedia.org/wiki/File:Earthen_pot_02.jpg
"Hellenistic Money box in shape of a temple from Priene Antikensammlung Berlin.jpg" by Picture taken by Marcus Cyron, CC BY-SA 3.0, https://commons.wikimedia.org/wiki/File:Hellenistic_Money_box_in_shape_of_a_temple_from_Priene_Antikensammlung_Berlin.jpg
"Снежок1.jpg" by A. Sobolev, Public domain, https://commons.wikimedia.org/wiki/File:%D0%A1%D0%BD%D0%B5%D0%B6%D0%BE%D0%BA1.jpg
"Avalanche on Everest.jpg" by Chagai at English Wikipedia, Public domain, https://commons.wikimedia.org/wiki/File:Avalanche_on_Everest.jpg
"Jää on kulmunud pallideks (Looduse veidrused). 05.jpg" by Aleksandr Abrosimov, CC BY-SA 4.0, https://commons.wikimedia.org/wiki/File:J%C3%A4%C3%A4_on_kulmunud_pallideks_(Looduse_veidrused)._05.jpg
"Joseph Siffrein Duplessis - Benjamin Franklin - Google Art Project.jpg" by Joseph-Siffred Duplessis, Public domain, https://commons.wikimedia.org/wiki/File:Joseph_Siffrein_Duplessis_-_Benjamin_Franklin_-_Google_Art_Project.jpg
"ISH WC Boston4.jpg" by Ian Howard, CC BY 2.5, https://commons.wikimedia.org/wiki/File:ISH_WC_Boston4.jpg
"Philadelphia skyline 20240528 (cropped 2-1).jpg" by 颐园居, CC BY-SA 4.0, https://commons.wikimedia.org/wiki/File:Philadelphia_skyline_20240528_(cropped_2-1).jpg
"Pacioli.jpg" by Attributed to Jacopo de' Barbari, Public domain, https://commons.wikimedia.org/wiki/File:Pacioli.jpg
"Woman teaching geometry.jpg" by Attributed to Meliacin Master, Public domain, https://commons.wikimedia.org/wiki/File:Woman_teaching_geometry.jpg
"De divina proportione - Vigintisex Basium Planum Vacuum.jpg" by Leonardo da Vinci, Public domain, https://commons.wikimedia.org/wiki/File:De_divina_proportione_-_Vigintisex_Basium_Planum_Vacuum.jpg

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