Interest
Money earned for saving or lending, usually shown as a percentage.
Interest is what you're paid for letting someone use your money — a bank paying you to keep savings there, or a bond paying you to lend. It's also what you pay when you borrow. Understanding both sides early helps a kid see why saving works for you and debt can work against you.
Explain it to your kid
"Money you earn for saving or lending money."
Related words
🐷
Try MemoryBank free →A new money word every week
MemoryBank's Weekly Recap teaches your kid one money word at a time, tied to what their own account actually did that week.
MemoryBank is a display and education tool, not a financial advisor. Nothing here is investment, tax, or legal advice.