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Picture Book · Investing

The snowball: how compounding works

Story pages

A young woman dropping coins into a glass jar on a windowsill
Ava puts a small amount aside every month.
A small snowball resting at the top of a gentle snowy slope in the Snowy Mountains
Her investment earns returns. If she reinvests them, those returns can earn returns too.
A noticeably bigger snowball rolling down a snowy slope
That's compounding. Like a snowball rolling downhill, it can grow over time.
Two snowballs at the bottom of a hill
Time does a lot of the work. Starting earlier gives compounding longer to run.
A snowball rolling over a small patch of bare grass
Fees and tax take a little off as it rolls, so they matter too.
The woman sitting by a cabin window with hot chocolate watching cloudy weather over the mountains
Returns go up and down and are never guaranteed. In a bad year, the snowball can shrink.

The end

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General advice warning. This picture book is general information only. It does not take into account your objectives, financial situation or needs, and it is not personal advice. Rules and thresholds change. Before acting, consider whether it is right for you, read any relevant Product Disclosure Statement and our Financial Services Guide, and seek personal advice. Past performance is not a reliable indicator of future performance.

Information as at 27 October 2026. Sources:

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