Welcome students to the lesson and provide an engaging introduction. Explain that compound interest works both for savings and loans, and today we'll explore both sides.

Discuss key definitions: principal (initial amount), interest rate (percentage increase), and compounding frequency (how often interest is added) using relatable examples.

Describe visually how money grows when left to accumulate compound interest and how debts can quickly accumulate with frequent compounding. Use a prepared diagram to help illustrate.

Compare a savings account with a loan. Highlight real-life situations such as earning interest through savings and growing debt through high interest loans. Engage the students by asking for examples from their own experience or hypothetical scenarios.

Summarize the dual nature of compound interest and invite the students to ask any questions. Encourage a discussion about responsible financial decisions and the importance of understanding these concepts early.