Finance is like a big game of sharing and saving. Imagine you have a jar of cookies. Each time you do something helpful, like cleaning your room, you get a cookie. That’s like earning money. Now, if you keep all the cookies in your jar, you are saving. Saving is important because it means you have cookies for later, like when you want to buy a toy.
Sometimes, you might want to share your cookies with your friends so you can all have fun together. This is like spending money. You use some of your cookies to get things you want or need.
There are also times when you might borrow cookies from a friend and promise to give them back later. This is like a loan. Just remember, when you borrow, you have to return the cookies, maybe even a little more, to say thank you.
Finally, some people like to invest their cookies, which means they give them to someone who will use them to make even more cookies. It’s a way to grow your cookie jar over time!