What Is Interest and Compound Interest?

The Building Blocks of Stocks, Investments, and Growing Your Money (Little Economists)

Children - Concept
Kindle Edition
Reviewed on 05/10/2025
Buy on Amazon

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    Book Review

Reviewed by Doreen Chombu for Readers' Favorite

What Is Interest and Compound Interest? by Kelly Lee is an educational children's book designed to introduce young readers to these concepts. The story follows Hank the hamster, who wants to buy a bicycle for school. To save money, he decides to sell his toys, babysit, mow lawns, and put his earnings in a piggy bank. However, when the piggy bank is full, Hank realizes he needs another place to store his money. He visits his smart friend Charlie the bunny, who owns a bakery and has made a lot of money. When Charlie hears about Hank’s problem, he shares valuable information about how saving money in a bank can lead to earning interest and compound interest. This inspires Hank and Ava, the dog, who is listening to the conversation, to go to the bank and open a new account.

What Is Interest and Compound Interest? is a helpful book that teaches young readers about the benefits of saving money in a bank. It is the eighth book in the Little Economists series by Kelly Lee, which introduces terms like Stocks, investment, and Interest. The lessons are beneficial for both children and adults. The concepts are simple and easy to follow and understand, and the story is engaging, featuring adorable animal characters. Hank is a smart hamster who thinks strategically and seeks help when necessary. The narrative encourages children to be resourceful, work hard, and be open to learning new ways to earn money and achieve their goals. The colorful illustrations perfectly complement the story and effectively explain the concepts of interest and compound interest through simple visuals. The book teaches readers activities they can apply at home to foster a lifelong understanding of money management and investing. Overall, this is a wonderful read that will help youngsters develop practical skills for making informed financial decisions in real life.