I have spoken about this concept so many times I am blue in the face. Nevertheless, I continue to remind people, especially younger people (you need a longer timeframe for this to work) that in order to be financially successful compounding is one of the most important concepts to understand.
For example, take this simple exercise to see if you get this concept or not.
The correct answer is the second option.
You can go to this link for an in-depth discussion of how compounding works.
I will also note that compounding works with knowledge. This is why Charlie Munger said to be successful one must read. Over time the knowledge you acquire compounds on itself.
He has stated that he never met a successful person who did not read. I agree.