How do I explain investing and compound interest to a child in simple terms?

Use tangible examples instead of jargon. For compounding, show that money can make money: if a dollar earns a little each year and you leave both the dollar and its earnings alone, the pile grows faster and faster, like a snowball rolling downhill. Let older kids see it with a simple calculator by comparing saving early versus starting later. For investing, explain that buying a share means owning a tiny slice of a real company, and owning many companies through an index fund spreads the risk. Tie it to brands they recognize. Let a teen 'invest' a small real amount so they watch it move and feel ownership. Framing time as the secret ingredient helps them grasp why starting young matters more than the amount.