Grade 2 Lesson 4: Borrow, Trade and Gift
#Borrowing, #Trading, and #Gifting are 3 key, inter-related concepts when it comes to #financialliteracy. Below are simple definitions of each of these 3 terms:
Borrow:
When you take #money from someone for a specific purpose or an unforeseen event, it is referred to as "Borrowing". Borrowing money typically comes with a #promise to #payback. When you borrow the money, you incur #debt and have to pay the money back to the lender over time, and a little extra money – called #interest.
Trade:
To "Trade" is to willingly give things/ #products/ #services and get other things/products/services in return. For example, a person giving a thing must find another person who wants to get that thing. The giver gets something back in return. Trade is also called an #exchange or a #swap. One can potentially trade most things as long as they can find someone who wants that thing.
Gift:
In its simplest form, to "Gift" is to willingly give things or services and not get other things or services in return. The fundamental difference between gifting and trading is getting or not getting things/services in return for the things/services provided.
The above 3 concepts are quite critical when it comes to #finance and #money. For a 6-year-old #kid, it is important to understand the meanings and differences between these 3 terms at a fundamental level.
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