- Definition
Debt is money you owe to someone else, like when you borrow money and have to pay it back.
If you borrow $10 from your parents for a movie ticket, you have a $10 debt to them.
How to teach this in 30 seconds
Try this analogy: Debt is like borrowing money from a friend for a snack — you have a promise to pay them back.
Ask your child: Imagine you borrow two dollars for ice cream; what's your plan to pay it back?
Common mix-up: Kids often hear that debt is always bad. But debt can be a helpful tool, like for buying a house, if you have a clear plan to pay it back.
Examples
- When someone uses a credit card to buy groceries, they create a debt with the bank that they must pay later.
- A city might go into debt to build a new library or park for everyone to use.
debt 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 ↗
