- Definition
Lending is when someone gives money to another person or a business, expecting to get that money back later, often with an extra fee called interest.
When a bank lends a family money to buy a house, the family agrees to pay it all back over time.
How to teach this in 30 seconds
Try this analogy: Lending is like letting a friend borrow your favorite book or game, knowing they'll give it back to you later.
Ask your child: If you let a friend borrow five dollars, what would you want back?
Common mix-up: Kids might think lending is the same as giving a gift. The key idea is that lending always includes the expectation that you will get the money back, sometimes with a little extra.
Examples
- A car dealership lending someone money to buy a new car.
- A credit card company is lending you money when you use the card to buy something.
lending 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 ↗
