JUNIOR EDITION for Ages 6+
Money: The Magic of Compounding · Book 1

Compounding: The Little Snowball That Grew

How did Great-Grandma's $100 grow so big, when nobody added any money?

In this book, you will find out…

When you grow up, you could…

Who is in the story

MeadowMeadowLoves puzzles. Hates giving up.
CharlieCharlieAsks one good question — then lets Meadow find out.
WarrenWarrenTurns up late. Thinks about a hundred years from now.

Today’s mystery

How did Great-Grandma's $100 grow so big, when nobody added any money?

Look for the clues. Try to guess the answer before Meadow does!

Chapter 1

The Box in the Attic

🔍 Why do these numbers grow by more each year?
Meadow found an old box in the attic. Sunday was family dinner. She had a plan.
Meadow found an old box in the attic. Sunday was family dinner. She had a plan.
Inside were nine little bank books.
Inside were nine little bank books.
MeadowGreat-Grandma kept everything!
She would solve the box, and tell everyone on Sunday.
She would solve the box, and tell everyone on Sunday.
One book began with $100. It said ten percent a year. Meadow wrote her guess first.
One book began with $100. It said ten percent a year. Meadow wrote her guess first.
Stop and think!
$100 grows by $10 a year. What will it be after 3 years? Guess first!
She guessed $110, $120, $130. But the book said $110, $121, $133.
She guessed $110, $120, $130. But the book said $110, $121, $133.
Every line was stamped. Nothing was crossed out.
Every line was stamped. Nothing was crossed out.
MeadowThat's not what ten percent does!
Charlie stopped at the gate.
Charlie stopped at the gate.
MeadowSomeone kept putting money in.
CharlieWhere would the book say so?
So Meadow checked every stamp herself. Only ONE deposit. Sixty years ago. Then nothing.
So Meadow checked every stamp herself. Only ONE deposit. Sixty years ago. Then nothing.
Her guess was wrong. Nobody added a coin.
Her guess was wrong. Nobody added a coin.
MeadowSo where is the extra money COMING from?
Chapter 2

The Extra Dollar

🔍 Where does the extra dollar come from?
Next morning, Meadow waited outside the bank before it opened.
Next morning, Meadow waited outside the bank before it opened.
She had one question ready.
She had one question ready.
MeadowDid you ever change the rate on this?
The clerk opened a huge old ledger.
The clerk opened a huge old ledger.
ClerkTen percent. Every year. It never moved.
At home, Meadow counted out 100 coins. One coin for each dollar.
At home, Meadow counted out 100 coins. One coin for each dollar.
Ten percent of 100 is 10. That part was easy.
Ten percent of 100 is 10. That part was easy.
Then she had an idea. She left the 10 coins IN the pile.
Then she had an idea. She left the 10 coins IN the pile.
MeadowYou stay right there.
Now the pile had 110 coins. And ten percent of 110 is 11!
Now the pile had 110 coins. And ten percent of 110 is 11!
Her idea was right!
Her idea was right!
MeadowThe money is earning money!
Meadow’s notebook
Money that stays in the pile starts working too.
She filled three jars. Each one held more than the last.
She filled three jars. Each one held more than the last.
But what about twenty years? That was twenty sums. Was there a faster way?
But what about twenty years? That was twenty sums. Was there a faster way?
Chapter 3

The Shortcut That Broke

🔍 Is there a quick way to know year twenty?
Two hours later, paper covered the whole table.
Two hours later, paper covered the whole table.
Three tries were on the floor. One mistake she could not find.
Three tries were on the floor. One mistake she could not find.
So Meadow made a shortcut. Twenty years, twenty tens. That makes $300!
So Meadow made a shortcut. Twenty years, twenty tens. That makes $300!
She tested it on five years she already knew. Her shortcut said $150. The book said $161.
She tested it on five years she already knew. Her shortcut said $150. The book said $161.
The shortcut was already wrong. And the gap would grow every year.
The shortcut was already wrong. And the gap would grow every year.
She grabbed some chalk.
She grabbed some chalk.
MeadowIt's the same move every year. It grows on itself!
Adding builds a ramp. Growing on itself builds stairs. Every step gets taller.
Adding builds a ramp. Growing on itself builds stairs. Every step gets taller.
Then she opened the next two books. They belonged to two sisters.
Then she opened the next two books. They belonged to two sisters.
Chapter 4

The Two Sisters

🔍 Is it better to save more, or to start sooner?
Two sisters. Same bank. Same ten percent.
Two sisters. Same bank. Same ten percent.
Sister One saved for 10 years, then stopped. She put in $1,000.
Sister One saved for 10 years, then stopped. She put in $1,000.
Sister Two started later. She saved for 40 years. She put in $4,000.
Sister Two started later. She saved for 40 years. She put in $4,000.
Stop and think!
Who ended up with more money? Guess first!
Meadow was sure.
Meadow was sure.
MeadowSister Two, of course. She saved four times more!
To check, she chalked 50 years across the yard. A pebble for every year.
To check, she chalked 50 years across the yard. A pebble for every year.
The early pebbles had 50 years to grow. The late ones had hardly any.
The early pebbles had 50 years to grow. The late ones had hardly any.
Sister One won! Meadow was wrong — and glad she checked.
Sister One won! Meadow was wrong — and glad she checked.
MeadowIt's not how much. It's how long!
🔎 Clue found!
Money that starts early has more years to grow.
You can save more later. But you can never buy back a year.
You can save more later. But you can never buy back a year.
But one thing still bugged her. The first ten years looked so slow.
But one thing still bugged her. The first ten years looked so slow.
Chapter 5

The Snowball Hill

🔍 Why does growing start slow, then go fast?
It was snowing. Meadow made a snowball as small as an apple.
It was snowing. Meadow made a snowball as small as an apple.
She made a guess first: slow at the top, fast at the bottom. Then she pushed.
She made a guess first: slow at the top, fast at the bottom. Then she pushed.
At first it hardly grew. Halfway down, it was as big as her knee!
At first it hardly grew. Halfway down, it was as big as her knee!
At the bottom, it was taller than the fence! Her guess was right.
At the bottom, it was taller than the fence! Her guess was right.
Charlie had walked up.
Charlie had walked up.
CharlieDid the snow change halfway down?
MeadowNo. Same snow. Bigger ball!
Each turn adds a layer. A bigger ball picks up more snow.
Each turn adds a layer. A bigger ball picks up more snow.
She laughed.
She laughed.
MeadowIt's just like the coins!
Meadow’s notebook
The slow part is not broken. The ball is just small.
Lots of people give up in the slow part. Meadow would not.
Lots of people give up in the slow part. Meadow would not.
At home, she opened another book. Something was very wrong with it.
At home, she opened another book. Something was very wrong with it.
Chapter 6

The Book That Never Grew

🔍 Why did this money stay stuck at $100?
Forty years at ten percent. And it still said $100!
Forty years at ten percent. And it still said $100!
MeadowIt earned NOTHING?
Charlie did not explain. He just pointed.
Charlie did not explain. He just pointed.
CharlieRead the other side.
Meadow found a second column. Every year, $10 came in. And $10 went out.
Meadow found a second column. Every year, $10 came in. And $10 went out.
The money went into a tin. Then it was spent.
The money went into a tin. Then it was spent.
Same money. Same years. Left in, or taken out. That was the only difference.
Same money. Same years. Left in, or taken out. That was the only difference.
Meadow understood.
Meadow understood.
MeadowShe spent it. Great-Grandma kept it IN!
🔎 Clue found!
If you take the extra out, the snowball stops growing.
That family needed the money for food and coats. That was not wrong. That was life.
That family needed the money for food and coats. That was not wrong. That was life.
One book was left. It ran for six years. Then it just stopped. Why?
One book was left. It ran for six years. Then it just stopped. Why?
Chapter 7

Why It Stopped

🔍 Why did the last book stop after six years?
Meadow untied the old letters. Maybe they knew.
Meadow untied the old letters. Maybe they knew.
She read until midnight.
She read until midnight.
In year six, a storm took the roof off. The money paid for a new one.
In year six, a storm took the roof off. The money paid for a new one.
The sum never broke. Life just came first.
The sum never broke. Life just came first.
At the bottom of the box was a photo of an orchard.
At the bottom of the box was a photo of an orchard.
It was planted the same year as the first book. Was it still there?
It was planted the same year as the first book. Was it still there?
Chapter 8

The Old Orchard

🔍 Is the orchard still growing?
It was! Four fields away, the old orchard was still standing.
It was! Four fields away, the old orchard was still standing.
An old friend of Charlie's was there. His name was Warren.
An old friend of Charlie's was there. His name was Warren.
Meadow told him the whole mystery.
Meadow told him the whole mystery.
MeadowDid I get it right?
WarrenYou did. Now look up.
The man who planted these trees never ate one apple from them.
The man who planted these trees never ate one apple from them.
At the end of a row, someone had planted a brand-new tree.
At the end of a row, someone had planted a brand-new tree.
Meadow wrote fast, before she forgot.
Meadow wrote fast, before she forgot.
On Sunday, she told the whole family.
On Sunday, she told the whole family.
MeadowLeave it in. Start early. Give it time.
Next morning, she stood on the hill again.
Next morning, she stood on the hill again.
MeadowWhat ELSE grows like this?

All the clues

  1. Money that starts early has more years to grow.
  2. If you take the extra out, the snowball stops growing.

So… How did Great-Grandma's $100 grow so big, when nobody added any money?

The money it earned stayed in. Then that money earned money too. With lots of time, it grew like a snowball.

OmahaIndia Junior · a simpler version of Book 1 for readers aged 6-8