- Definition
Borrowing is when you get money from someone else, like a bank, and promise to pay it back later, often with an extra fee called interest.
If you borrow $100 from a bank for a new bike, you might have to pay back $110 over time.
How to teach this in 30 seconds
Try this analogy: Borrowing money is like asking a friend for lunch money, with the promise to pay them back later, sometimes with a little extra as a thank you.
Ask your child: If you borrowed five dollars from me, what would be your plan to pay it back?
Common mix-up: Kids might think borrowing is just getting money for free. Borrowing is always a loan that must be paid back, often with an extra fee called interest.
Examples
- A family borrows money from a bank to buy a car and makes monthly payments to pay it back.
- Using a credit card to buy something is a form of borrowing, where you promise to pay the credit card company back.
borrowing is a term used in Ontario’s Kindergarten to Grade 8 curriculum.
Where this shows up
The descriptions on this page are SmartStudy’s own original, plain-language writing — not the Ministry’s wording. They are aligned to the Ontario Curriculum, © King’s Printer for Ontario. For the Ministry’s official wording, see the source link below. SmartStudy is an independent service and is not affiliated with, endorsed by, or sponsored by the Government of Ontario or the Ministry of Education. Ontario Curriculum and Resources ↗
