Teachers · 30 Jul 2026
From pocket money to a first SIP: teaching compounding at home
How to explain compounding to a teen — and why starting early beats starting big.
Compounding means your money earns money, and then that money earns money too. It’s slow at first, then surprisingly fast.
A classroom activity
Give two teams a ‘SIP’ of ₹500 a month. Team A starts at 15, Team B at 25. Use a simple calculator to compare their totals at 40. The gap starts the best conversation of the term.
Key ideas to land
- Time matters more than amount.
- Inflation quietly shrinks money that sits still.
- Diversify — don’t put all your eggs in one basket.
