By Matt Finnis

Albert Einstein espoused that compound interest is the eighth wonder of the world. A powerful financial concept, compound interest sees us earn interest not just on our original savings or investment, but also on the interest it has already generated. This compounding effect builds momentum over time, leading to faster and greater financial growth. “He who understands it, earns it; he who doesn’t, pays it,” Einstein famously said. Australian financial commentator Scott Pape (The Barefoot Investor) went further by suggesting an understanding of the miracle of compound interest is amongst the most important wisdoms any parent can impart upon their child.

Far be it from me to disagree with such divergent minds, who aren’t the only disciples of a principle grounded in the combined value of consistency, foresight, and time. However, our work at Cranlana in the second quarter of the year has prompted a different and hopefully higher order question, namely: What might be the compound impact of equipping young people with the tools and frameworks of ethical reasoning in the formative stages of their lives?

This year, we’ve had the privilege of designing and delivering a new ethical leadership program to a group of Year 9 students at St Catherine’s School in Melbourne. It’s a bold initiative, led by new principal (and Vincent Fairfax Fellow) Natalie Charles and grounded in the school’s motto – Nil Magnum Nisi Bonum (Nothing is Great Unless it is Good).

The program is shaped by a belief that ethical reflection and virtuous character are not just the foundations of good leadership, but essential to human flourishing. Over the course of a two-week immersive retreat in Narmbool, students were given the opportunity to explore ethics not as a list of rules to follow, but as a lens for living.

From considerations of Justice and Power to Virtue Ethics, the group were introduced to frameworks for moral reasoning and encouraged to think not just about what they do, but who they are becoming. By drawing upon provocations derived from sources that varied from Plato’s Cave to The Hunger Games, students were invited to build their own relationship with ethical principles in a carefully curated space free from the usual daily distractions, including an absence of digital devices.

Listening to the student presentations delivered to teachers and parents on the final day, it was obvious that the students’ sense of what is good – both individually and for society – had been stirred and was taking shape. This is where the opportunity of compound ethics lies.

The students’ reflections reminded me that much like compound interest, the capacity for ethical imagination grows over time. When encouraged to reflect at age 14—“What kind of person do I want to be?”—an idea is planted that can echo over the course of a lifetime.

If young people are given the space and the tools that help them think about their values, examine their character and practise ethical judgment now, then when they face more complex dilemmas (and we can agree that today’s young people will have no shortage of those), they might well bring advanced moral muscles to the table when it’s their turn to act. Just like savings tucked away in a long-term account, the return on these early “investments” might not be visible immediately, but over time they can be immense.

●            A moment of empathy can reinforce a sense of shared humanity.

●            A principled decision could become the foundation for future integrity.

●            A small act of courage today could blossom into moral leadership tomorrow.

Ethical habits will compound.

Neither Cranlana nor St Catherine’s are setting out to produce a generation of saintly actors or moral perfects. Our program is simply seeking to provide young people the tools and language to connect who they are, to the kind of society they want to help build. To support them as they resist algorithms and other numbing forces that so often crowd out better instincts and help students stay awake to what’s good, what matters, and ultimately, what perseveres.

In an education system often obsessed with outcomes, we can too easily forget the power of process. But hopefully this initiative will show that by investing in the ethical development of young people early (before the noise of adult life takes over), we don’t just prepare them for great school results or even high paid jobs. We prepare them for life and everything it has in store.

At the end of the day, nothing is truly great unless it is also good. And goodness, when cultivated with care and courage, has an amazing way of multiplying.

Matt Finnis is the CEO of the Cranlana Centre for Ethical Leadership.