Debt is like when you borrow a toy from your friend and you promise to give it back later. Your friend trusts you to return it, so they let you play with it for a while. But you have to remember, you owe them that toy and you need to give it back when you said you would. This is like a promise you make to your friend.
Another way to think about debt is if you want a cookie but you don’t have one, so you ask your mom for one and she says, ‘Okay, but you have to do a chore for me later.’ Now, you have a cookie, but you also have a chore to do. That chore is what you owe your mom, just like the toy you owe your friend.
Debt can also be like when you use your crayons to draw a picture, but then you run out of red. You ask your sister if you can use her red crayon, and she says yes, but you need to let her use your blue crayon later. You’re using her crayon now, but you have to remember to give her something in return. This is how debt works, you get something now and give something back later.