In this economy it is a huge opportunity for us to educate our kids about money. Rumor has it, if you take a penny and double it each day for month using compound interest you could have more than $1,000,000 by the end of 30 days. (See the example below)“Compound interest” is a way of adding accumulated interest back into the principal so that interest is earned on interest right away.

At Farmer’s Hat Productions, we believe it’s never too early to teach a child about personal finances and giving back to the community. Teaching the importance of saving money, spending, donating and investing at a young age can help build self esteem and lead us toward a stronger community. We have found some great resources to help you teach your kids about money.

1. Free resources for kids:
H.I.P. Pocket Change from the United States Mint
Sesame Street Workshop, Talking Cents
MarketWatch Money Games for Kids
Games that teach kids From the Washington Department of Financial Institutions
2. For Educators
Click here for teachers guide, lesson plans and more
Practical Money Skills for Life

“A Penny Doubled Every Day for a Month”

Check out the Power of Compound Interest!
Day Amount
1 $0.01
2 $0.02
3 $0.04
4 $0.08
5 $0.16
6 $0.32
7 $0.64
8 $1.28
9 $2.56
10 $5.12
11 $10.24
12 $20.48
13 $40.96
14 $81.92
15 $163.84
16 $327.68
17 $655.36
18 $1,310.72
19 $2,621.44
20 $5,242.88
21 $10,485.76
22 $20,971.52
23 $41,943.04
24 $83,886.08
25 $167,772.16
26 $335,544.32
27 $671,088.64
28 $1,342,177.28
29 $2,684,354.56
30 $5,368,709.12
Total $10,737,418.23

Book Covers from the award winning Bur Bur and Friend’s children’s book series: Bur Bur and Friends is a cast of multicultural characters who educate kids about self-esteem, sports, outdoor exploration and active play though their experiences.

This entry was posted on Monday, October 5th, 2009 at 11:24 am and is filed under Community Board. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.