How Kids Learn About Interest With a Loan from Mom

In this episode of Teaching Kids About Money with Fexingo, Lucas and Luna explore a practical way to teach children about interest by acting as a family bank. They discuss how lending a child $20 to buy a desired toy, with a small interest charge, can make abstract concepts like principal, interest rate, and repayment tangible. Using a real example with a 10% weekly interest rate, they show how a $20 loan becomes $22 after one week, and how the child learns the cost of borrowing. The hosts also touch on how this lesson connects to credit cards, car loans, and mortgages. A must-listen for parents wanting to build financial literacy at home, with a light ask for listener support via Buy Me a Coffee. #TeachingKidsAboutMoney #FinancialLiteracy #KidsFinance #Interest #FamilyBank #Allowance #Parenting #MoneyLessons #FexingoBusiness #BusinessPodcast #FinancePodcast #KidsAndMoney #Loan #Repayment #Principal #InterestRate #Credit #SmartMoney Keep every episode free: buymeacoffee.com/fexingo