Compound interest is one of the most powerful tools for wealth building. It allows your money to grow exponentially over time by earning interest not only on the initial principal but also on the interest already earned. The earlier you start investing or saving, the more you can benefit from compound interest. For example, a small investment made in your 20s can grow significantly by the time you retire, thanks to the power of compounding. Many financial products, such as savings accounts, bonds, and retirement accounts, use compound interest to grow your wealth over time. Understanding and leveraging compound interest can help you make smarter financial decisions, whether you’re saving for retirement or looking to grow your investment portfolio.