- Definition
Credit is like borrowing something now and promising to pay for it later, such as using a credit card to buy groceries and paying the bill at the end of the month.
Using a credit card to buy groceries and then paying the bill at the end of the month is using credit.
How to teach this in 30 seconds
Try this analogy: Credit is like getting a snack from the school store now by promising the clerk you will bring the money to pay for it tomorrow.
Ask your child: If you wanted a toy now but your allowance is next week, how could you get it?
Common mix-up: Kids may think credit is like getting something for free. The key idea is that credit is a promise to pay the full amount back later.
Examples
- A family buying a car with a loan they promise to pay back a little bit each month.
- A store owner getting new toys for their shop and agreeing to pay for them next month.
credit 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 ↗
