Your teaching approach involves banks paying an APR of 36500% to depositors, but the price of the bike stays stable? You have a more realistic chance of growing your own unicorn. This isn't education, it's propaganda.
As for propaganda, I assume that was in jest.
I think it's propagandistic to speak of the 'magic' on compound interest at all; it reminds of the 'magic' of Ponzi schemes. Consider that if you changed the perspective in the example game while keeping other conditions the same, it could just as easily be a lesson about the 'magic' of debt slavery, in which a kid borrows money to buy a bicycle but is then unable to ever pay off the loan - which might cause a lot of the young participants to question the value of a system that arguably entraps far more people than it empowers.
The massively unrealistic payouts and artificial conditions (like the bike vendor holding the price steady for the customer, instead of just selling the bike and sticking the $1000 in the bank to double every day) strikes me as a fairy story. It's not just because of the exaggerated interest rate (which only going to lead to disappoint immediately afterward) but because it implicitly posits two different sets of rules: one for the depositor who is enjoying both free money and cartoonishly accelerated benefits, and a different one for the shop owner who is somehow disconnected from this inflationary financial environment.
To be clear, I think teaching kids financial literacy early on is a good thing, but that this isn't a good way to instil the lesson.
Compound growth exists in nature. A few bugs can quickly multiply into a swarm.
Compound growth exists in nature. A few bugs can quickly multiply into a swarm.
I think a more effective kind of financial literacy would convey that any time you see wild overshoots in growth it tends to have devastating local effects followed by a crash.