What Is Compound Interest?
Imagine you plant one magic bean. It grows into a plant that makes 2 more beans. Then those beans each grow into plants that make 2 more beans. Your beans...
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Financial topics explained so simply, a 5-year-old could get it.
What Is an Emergency Fund?
You know how your parents keep a flashlight in the house in case the power goes out? An emergency fund is like that, but for money. It’s cash you set...
What Is a Savings Account?
Imagine you have a piggy bank, but instead of keeping it under your bed, you give it to a really big, safe building called a bank. The bank says “thank...
What Is a Bond?
Imagine your friend needs to borrow $10 from you. They promise to give it back in a year, plus an extra $1 as a thank-you. You agree, and they write...
What Is a Stock?
Imagine your friend has a lemonade stand. They need help buying more lemons, so you give them some of your allowance. In return, you own a tiny piece of their...
What Is a Credit Card?
Imagine you’re at a toy store but you forgot your allowance at home. The store says, “That’s okay, take the toy now and pay us back later.” That’s basically what...
What Is a Credit Score?
Remember when your teacher gave you gold stars for being good? A credit score is like a grown-up gold star system. When you borrow something and give it back on...
What Is a Checking Account?
If a savings account is like a piggy bank you try not to touch, a checking account is like your wallet. It’s where you keep the money you use every...
What Is a Budget?
Say you get $10 for your allowance. A budget is deciding before you spend it: $5 for toys, $3 for snacks, and $2 goes into your piggy bank. It’s a...