Abstract
Compound interest is in the center of both economic growth and personal finance, but treated as independent topics in most economics textbooks. This educational note first defines economic growth and the main factors behind it. Then, figures and tables are applied to show the power of compounding growth (inflation and purchasing power adjusted) for select countries over the last centuries. Right after, growth future value calculation practice problems follow. After mastering four distinct variants of the compound interest formula, the paper’s focus moves to students and personal finance. The earlier formulas are now used to highlight the significance of long-term investing in one’s financial future. Though economic growth and personal finance are not commonly taught together, this paper shows that these topics can complement each other and that students can gain additional insights into how compound interest is meaningful to their own lives.
Recommended Citation
(2026)
"Increase Interest In Compound Interest: Economic Growth and Personal Finance,"
Journal of Economics and Finance Education: Vol. 16:
Iss.
2, Article 9.
Available at:
https://scholarship.rollins.edu/jefe/vol16/iss2/9
