Cash is king
So kiddo, have you ever played pretend or real store? You know how you get excited when you have a lot of coins and bills to play with? Well, in the grown-up world of business, having lots of cash is like being the king or queen of that pretend store.
Cash is like the money that a business or person has in their pocket or bank account. It's important because it's what they use to pay for things like rent, groceries, bills, and even new things they want to buy like toys, new clothes, or cars. Just like how you need money to buy the things you want, a business needs cash to keep the business running smoothly.
But sometimes, there are problems in the economy (that's big people talk for how money works in the whole world). When these problems happen, it can be hard for businesses to make money, and it can be hard for people to have jobs. When this happens, businesses might not have as much money coming in, but they still have to pay for things like rent and electricity.
That's when having a lot of cash is super important. If a business has a big pile of cash saved up, then even if they are not making as much money as they used to, they can still keep paying their bills and keep the business going. It's like having a secret stash of money that they can use when things get tough. That's why people say that "cash is king" because having lots of cash is like being the ruler of the business world, and it helps them stay safe and strong, even during hard times.
Cash is like the money that a business or person has in their pocket or bank account. It's important because it's what they use to pay for things like rent, groceries, bills, and even new things they want to buy like toys, new clothes, or cars. Just like how you need money to buy the things you want, a business needs cash to keep the business running smoothly.
But sometimes, there are problems in the economy (that's big people talk for how money works in the whole world). When these problems happen, it can be hard for businesses to make money, and it can be hard for people to have jobs. When this happens, businesses might not have as much money coming in, but they still have to pay for things like rent and electricity.
That's when having a lot of cash is super important. If a business has a big pile of cash saved up, then even if they are not making as much money as they used to, they can still keep paying their bills and keep the business going. It's like having a secret stash of money that they can use when things get tough. That's why people say that "cash is king" because having lots of cash is like being the ruler of the business world, and it helps them stay safe and strong, even during hard times.