Money word

Reinvesting

Using earnings like dividends to buy more investments, so they compound.

Reinvesting means putting your investment earnings back to work instead of spending them. Automatically reinvesting dividends buys more shares, which then earn their own dividends — a small snowball that becomes a big one over a childhood-length horizon.

Explain it to your kid

"Using what you earn to buy more investments."

Related words

🐷

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.

Try MemoryBank free →

← Back to the full glossary

MemoryBank is a display and education tool, not a financial advisor. Nothing here is investment, tax, or legal advice.