Deferred income

Alright kiddo, let's talk about deferred income!

Sometimes you might get some money, but you can't keep it all right away. Maybe your parents want you to save it for a special occasion or use it for something important later on. This is like deferred income for grown-ups.

Deferred income means you got paid money but you can't keep it all right away. Instead, you have to wait until later to keep some of it. This happens with a lot of jobs, especially if you work for a big company.

When you get your paycheck, sometimes the company might take out some of the money and put it aside for later. This is like saving it in a special piggy bank that you can't touch for a while.

Later on, when the time is right, the company might give you some of that money back. Yay, more money! But you still can't have it all right away. This way, the company can make sure that they have enough money to pay for important things, like bills or taxes.

So, deferred income is like getting paid some money, but having to wait to keep all of it. It's like saving it for later, until the time is right. Pretty cool, huh?