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Loan
Money you borrow and promise to pay back.
Three ways to explain it
Hatchlings · Ages 5–6
Money someone lets you use for a while, which you have to give back.
Fledglings · Ages 7–8
Money you borrow, with an agreement about when you’ll pay it back — and nearly always a bit extra on top, called interest.
High Flyers · Ages 9–10
A sum borrowed under an agreement to repay it over time, almost always with interest. The lender is charging for the use of their money, and for the risk you might not repay it.
Where to go next
We’re writing a full topic about this one. In the meantime, explore Money World.