Compound Interest Explained Using The S&P 500 | NerdWallet

Have you ever wondered how compound interest actually works? Many people know the S&P 500 delivers strong average returns, but don’t understand how compound interest is earned when the market goes up and down. In this video, we’ll be breaking down how this works using real data from the S&P 500. #sp500 #CompoundInterest #InvestingForBeginners #PersonalFinance #CreditCardDebt CHAPTERS: 00:00 - Intro 01:01 - What Is Compound Interest? 02:02 - Compound Interest Example With the S&P 500 06:12 - What is Compounding Debt? ADDITIONAL RESOURCES: 👉 Compound Interest Calculator: https://www.nerdwallet.com/banking/calculators/compound-interest-calculator?utm_source=yt&utm_medium=sc&utm_campaign=ba_mktg_organic_041624_social_cm_yt_vertical_promotionalexplainer_compound-interest-calculator#:~:text=What%20is%20compound%20interest%3F 👉 What Is The Average Credit Card Rate?: https://www.nerdwallet.com/credit-cards/learn/what-is-the-average-credit-card-interest-rate?utm_source=WW&utm_campaign=cm_organic_052726_yt_desc_vid_edu_aerage-credit-card-interest-rate ABOUT NERD WALLET: We’re NerdWallet. And we’re not your typical finance company. We believe that everyone should be able to make financial decisions with confidence. We’ve built a team of Nerds with the knowledge, passion, and skills to make that happen. Thanks to our Nerdy experts, see side-by-side comparisons and objective reviews of the best credit cards, bank accounts, and so much more — so you can get even more financial clarity. It’s the smartest decision for all your financial decisions. Disclaimer: This video is for informational and educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks or securities. Any comments posted under NerdWallet's official account videos are not reviewed or endorsed by NerdWallet or representatives of financial institutions affiliated with the reviewed products unless explicitly stated otherwise. Avoid disclosing personal or sensitive information such as bank accounts or phone numbers. NerdWallet employees do not offer personalized financial advice and will not respond to posts here.