Compound Interest: A Child’s Superpower You Didn’t Know They Had

When thinking of gifts for children, we often turn to toys, books, or clothes. But there is a far more powerful gift available, one that quietly grows over time and transforms futures. That gift is compound interest.

Compound interest is simple to understand and powerful to use. It is the process where you earn interest not just on your savings, but on the interest your savings have already earned. It builds on itself, and the earlier it starts, the more powerful it becomes.

Let’s look at a basic example. Contributing R50 per week adds up to R2,600 a year. Over 10 years, that’s R26,000, without accounting for growth. But with a modest 8% annual return, that same R50 weekly investment could grow to over R38,000. The key is consistency and time.

Children are uniquely positioned to benefit from this because they have time on their side. With no immediate financial needs, they can afford to let their investments grow uninterrupted. Every small contribution, made consistently, becomes part of a larger financial foundation.

How to start building compound interest

Squirrel Away allows families to harness this superpower. With just a few taps, you can begin saving or investing for a child’s future. Whether it’s for education, a car, or a first home deposit, the platform makes long-term goals reachable. You can automate contributions, invite family members, and track progress — all in one place.

The impact extends beyond money. Children who grow up watching their funds grow learn essential values. They learn that money can work for them. They understand the power of patience. And they begin to view wealth as something within reach.

In a world where financial literacy is still out of reach for many, this early exposure is critical. Through Squirrel Away, you are not just gifting money. You are giving a child the tools to build financial independence.

Start early. Start small. Start now.

With compound interest, your child’s first investment may be the most important one they ever receive.