- Definition
An investment is when you put money into something, like a house or a company, hoping it will grow in value so you can sell it for more later or earn money from it over time.
Buying a share of a company's stock is an investment because you expect its value to increase over time.
How to teach this in 30 seconds
Try this analogy: An investment is like buying a special collectible toy, hoping that it becomes more valuable over time so you can sell it for more than you paid.
Ask your child: If you had $20 to invest, what would you buy to make it grow?
Common mix-up: Kids might confuse investing with saving. Saving is putting money aside, while investing is using money with the goal of making it grow, which means there is always a chance you could lose it too.
Examples
- Putting money into a special savings account that pays you interest is an investment.
- Buying a house and renting it to someone is a real estate investment that produces income.
investment 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 ↗
