RBNZ launches video to explain compound interest
The Reserve Bank has today released a video explaining compound interest and how it affects savings.
The three-minute multimedia presentation is part of the Reserve Bank's ongoing efforts to promote financial literacy, and is a contribution to Money Week.
Reserve Bank Assistant Governor and Head of Operations, Don Abel, said the video is a user-friendly way to explain a powerful financial concept.
"Financial literacy and the ability to make informed judgements and decisions about money management are important for individuals, the financial system and the wider economy. This video is a useful tool to help people broaden their financial understanding," he said.
The video can be viewed via the Reserve Bank's Money Week page.
Community groups, schools, media outlets and organisations promoting financial literacy are encouraged to post a link to the video on their own websites or Facebook pages.
Albert Einstein is widely reported to have once described compound interest as the eighth wonder of the world : "He who understands it, earns it ... he who doesn't ... pays it."
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