- Definition
A financial institution is a business like a bank or credit union that helps people manage their money, offering services like savings accounts, loans, and investments.
A bank is a financial institution where you can open a savings account to keep your money safe.
How to teach this in 30 seconds
Try this analogy: A financial institution is like a community piggy bank that not only keeps money safe but can also lend it out or help it grow.
Ask your child: Besides a wallet, where do grown-ups keep their money safe?
Common mix-up: Kids might think a financial institution is just a place to get cash. It's a company that provides many services, like saving, borrowing, and investing money.
Examples
- A credit union is a financial institution that might give a family a loan to buy a house.
- An insurance company is a financial institution that helps protect you from financial loss.
financial institution 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 ↗
