Your child logs in through the website ready to start today's lesson: it's Module 3: Interest! Your child clicks the Earn tab, and then clicks the module where they are greeted by the two helpers who promise to teach them about simple and compound interest and how to use online calculators. The module quickly clarifies the term principal, which is the amount in the account upon which the bank calculates interest. The student then learns the difference between Simple interest, calculated only on the principal, and Compound interest, which calculates interest on both the original principal and any previous interest earned. The interactive core of the module involves using a dedicated interest calculator: after confirming what a $100 deposit over three years earns with simple interest, your child immediately sees how compounding the same amount for the same period yields more. This concept is powerfully illustrated by calculating the return over 40 years, showing that compound interest really "takes off". Finally, focusing on practical skills, your child uses a calculator to simulate saving realistic amounts, learning that consistently depositing a smaller, regular amount, such as $100 per month at 5% for 10 years, can lead to total savings of $15,593, reinforcing one of the benefits of leaving money in a savings account rather than a spending account. After the lesson is complete, your child completes a 10 question quiz to measure what they've learned. When they complete that, they've almost completed the first topic! It's time for the final part of the first topic: the 15 question post-test. They recognize these content of these questions not only from the pre-test, but also from the modules they've just completed. More equipped to answer the questions having been exposed to the concepts, they answer the questions and are congratulated with a certificate of completion for the first topic. They then can choose to move their newly earned money into their savings account (knowing now how important interest can be!), use it to invest in a qualification to get another job (increasing their base earning potential), or donate to charity. They can also buy different cosmetic items to customize their avatar. When they've finished, you have the opportunity to discuss with them what they learned, as you've been provided the module guide for parents. We provide several activities to try with your child, like "Get your child to search banks on the internet to discover what interest they are paying on checking and savings accounts." "See if they can find a savings calculator online to see how much they can achieve by saving and how quickly they can reach their goals." "Tell your child to imagine they have just been given $1,000 on the condition they bank it for one year. Using their research skills, find out which bank which will give them the most money by the end of the year."
