9-lesson course · about 3 hours
Your First Savings: How Compound Interest Builds an Emergency Fund
For Adults who have not yet built savings or an emergency fund
Understand how compound interest grows your savings, then use it to build an emergency fund with a real account and a deposit schedule.
What you’ll be able to do
By the end, you can…
How it works
A tutor that meets you where you are
- Lessons that adapt to your levelEach lesson adjusts to what you already know. If you need more practice with percentages or the formula, the course slows down. If you grasp a concept quickly, it moves forward.
- Ask the AI tutor anythingType or speak your questions at any point. The tutor works through examples with you, explains terms in different ways, and checks your understanding before you move on.
- Quizzes and flashcards for every lessonEach lesson includes quizzes and flashcards tied directly to what was taught, so you can test yourself on formulas, definitions, and calculations before applying them.
- Progress tracking and a certificateTrack your progress through all nine lessons. When you finish the course, you receive a certificate of completion.
Curriculum
The curriculum
The course moves from understanding what compound interest is, to calculating how savings grow, to applying everything to a personal emergency fund plan. Here is what each lesson covers.
Module 1Understanding Compound Interest3 lessons
1Simple vs Compound Interest
- Explain in your own words how simple interest differs from compound interest.
- Identify whether a given interest calculation is simple or compound.
2Compounding Frequency
- Identify the compounding frequency of a savings account from its terms.
- Explain why more frequent compounding produces a higher final amount at the same nominal rate.
3Annual Equivalent Rate (AER)
- Define AER in your own words.
- Compare two savings accounts using AER rather than the headline interest rate.
- Identify why two accounts with the same nominal rate but different compounding frequencies produce different AERs.
Module 2Calculating How Savings Grow3 lessons
4The Compound Interest Formula
- Identify each variable in the compound interest formula A = P(1 + r/n)^(tn).
- Calculate the final amount of a lump sum deposit using the compound interest formula.
- Calculate the total interest earned by subtracting the principal from the final amount.
5Regular Monthly Deposits
- Identify each variable in the monthly deposits formula.
- Calculate the future value of an account that receives regular monthly deposits.
- Compare the result of a lump-sum-only deposit to an account that also receives monthly deposits.
6The Rule of 72
- Estimate how long it takes for a sum of money to double at a given interest rate using the Rule of 72.
- Estimate the interest rate needed to double money within a target number of years.
Module 3Applying It to an Emergency Fund3 lessons
7Inflation and Your Savings
- Explain in your own words how inflation erodes the real value of savings.
- Estimate whether a given savings rate is likely to keep up with a stated inflation rate.
8Choosing an Account for Your Emergency Fund
- List the key features to compare when choosing a savings account for an emergency fund.
- Compare at least two account options using AER, compounding frequency, and access terms.
9Setting Up Your Emergency Fund Plan
- Choose a target emergency fund amount based on personal monthly expenses.
- Choose an account type for the emergency fund and justify the choice using AER and access terms.
- Calculate how long it will take to reach the target using the monthly deposits formula with a chosen monthly deposit amount.
- Write a simple deposit schedule that states the monthly deposit amount and target date.
Who it’s for
Made for you if…
Made for: Adults who have not yet built savings or an emergency fund
Someone with a checking account but no savings
You want to start an emergency fund but are not sure how interest works, which account to choose, or how much to set aside each month.
Someone with irregular income
You need a buffer for months when income is lower and want to understand how to grow that buffer steadily using compound interest.
Someone who has tried saving before and stopped
You want a clear plan with a target amount, a deposit schedule, and a way to see how your money grows so you stay motivated.
Questions
Good to know
Do I need any background in finance or investing?
No. The course assumes basic comfort with percentages and a calculator. There is no prior finance or investing knowledge required.
Does this course cover investing in stocks, bonds, or mutual funds?
No. The course focuses on savings accounts and compound interest as they apply to building an emergency fund. It does not cover stocks, bonds, or mutual funds.
Will I learn about credit card interest or paying off debt?
No. The course is about saving and growing money in a savings account. It does not cover credit card interest or debt repayment strategies.
Does the course cover taxes on interest income?
No. Tax treatment of interest income is outside the scope of this course.
Will I actually create an emergency fund plan in the course?
Yes. In the final lessons you choose a target amount based on your monthly expenses, compare account options using AER and access terms, and calculate how long it will take to reach your goal using the monthly deposits formula with a deposit amount you choose.
What if I do not understand the formulas?
Each variable in the compound interest formula and the monthly deposits formula is explained in plain language with worked examples. The AI tutor can walk you through additional examples step by step until you are comfortable.