Cashflow matching

Okay, imagine you have some money, and you need to use it to pay for things at different times in the future. Like, maybe you need to pay for rent next month, and then you also need to save some money so you can buy a new toy next year.

Cashflow matching is when you try to make sure that you have the right amount of money at the right time to pay for all the things you need. So, you might put some of your money into a piggy bank that you can open in a month to pay for rent, and then you might put some money into a different piggy bank that you won't open until next year, so you can use it to buy your new toy.

In the same way, companies and investors try to make sure they have enough money at the right time to pay for all the things they need. This can include paying employees, paying for materials to make products, and paying back loans.

So, they might use something called cashflow matching to make sure they have enough money at the right time. This means they might invest in things like bonds or other investments that pay them money at specific times in the future, so they can use that money to pay for the things they need.

It's kind of like putting money into different piggy banks that you can open at different times, to make sure you have enough money when you need it!