Interest

Are you satisfied with your allowance? Want to earn more extra little cash? Then interest is for you. However, interest takes a lot of patience! How do you earn interest? By putting your money in the bank! The bank offers you very low interest rates, but at least it puts something in your pocket, right? The interest you get relies on the amount of money you decide to save, the bank's interest rate, and how much time you leave in the bank.

Let's say the bank's interest rate is 5%, and you put $100 in the Bank of America for 10 years.

Year 1	$100	5%
Year 2	$105	5%
Year 3	$110.25	5%
Year 4	$115.75	5%
Year 5	$121.54	5%
Year 6	$127.62	5%
Year 7	$134	5%
Year 8	$140.70	5%
Year 9	$147.74	5%
Year 10	$155.13	5%

There may not be a big increase, but think about what it would be like if you saved a thousand over many years! It could be a lot more than that. Also, interest is not instant. You cannot ask for interest right away. You'll have to wait, but it's better than nothing!

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