Yield is the money you earn when you save or invest wisely. Think of planting a mango tree in your backyard. You water it, care for it, and boom—one day it gives you juicy fruits! That fruit is your yield; it’s what you get back from your effort.
By Tracy Rabi
Hello, smart earners! I’m so excited to bring you the next part of our ABCs of Finance for Kids, and today we’re talking about a word that’s all about growth and reward: yield!
Yield is the money you earn when you save or invest wisely. Think of planting a mango tree in your backyard. You water it, care for it, and boom—one day it gives you juicy fruits! That fruit is your yield; it’s what you get back from your effort.
You might notice yield in simple examples in daily life:
If you save money in a junior account at CRDB or NMB, the bank gives you a small reward called interest. That’s your yield for keeping your money safe and untouched. The longer you save, the more it grows!
Or imagine using your allowance to buy ingredients and bake cupcakes for your schoolmates. You sell each cupcake and make a profit. That profit is your yield, sweet and earned!
Some grown-ups invest in shares at the Dar es Salaam Stock Exchange (DSE). When their shares do well, they earn dividends. That’s another kind of yield!
But here’s the trick: yield can be big or small depending on what you choose and how long you wait. Saving for one month might give you a little, but saving for a whole year? That’s mango season!
Tracy Tip: Always ask yourself, “If I plant this coin today, what could it grow into tomorrow?” Yield helps you turn coins into confidence.
So next time you put money aside or think of a business idea, remember: you’re not just spending, you’re growing a financial tree.
Catch me next week for “Z is for zero balance account”, where saving starts with just you!
Stay fruitful,
Tracy.
Tracy Rabi is a children's author and the founder of Kids Finance with Tracy and the Tanzania Youth Entrepreneurship Experience.
