<prompt> Human: First of all, I dont want my kids to be in financial ruin. What I mean is that I want to teach them early in life about the force of compound interest and how you want it working for you and not against you. Teaching children is a common theme, and Ive read through many previous posts. I have some more ideas.nbsp;As a kid, I earned money for chores, worked for my dads business and was taught some general financial principles about how you earn money, how you should put some into savings, but I was never taught about compound interest, especially in the form of a loan. At 18 I did what a lot of new adults do, I got a credit card and proceeded to max it out. Early in my adult life I also purchased a car on an 18 interest loan. Needless to say, I felt the burn of compound interested and got my act together by my mid twenties.nbsp;This is partially a philosophical question: can you really learn, with conviction, about staying out of debt and avoiding compound interest without first being burned by it? Does that principle really sink in if you just casually add interest to their savings to teach them? So as my daughter gets older, Ive considered opening the Bank of Dad. In short, Ill teach her to work and save, but if she wants a loan from dad, Ill give it and ill include a high interest rate. I guess the hope is that within the confines of the home, shell get burned by the interest at the Bank of Dad and learn avoid it when she get to the real world as a young adult.  <response>: The lessons of the childrens book, One Grain of Rice stuck with me since childhood. Basic tale showcasing power of exponential growth. 