Financial asset

A financial asset is like a toy that you can buy, but instead of playing with it, you buy it to make money! It's like when you give your money to your piggy bank and then your parents take you to the store to buy a toy, but instead of buying a toy, they give the money to someone else who promises to give them even more money later on.

There are different kinds of financial assets, like stocks and bonds. A stock is like buying a little piece of a company like buying a piece of a Lego set. You can help decide what the Lego set does and when it does it by going to meetings where you and other Lego piece owners vote. If your Lego set does well and becomes popular, the value of your Lego piece goes up, and you can sell it for more money than you bought it for!

A bond is like lending your money to someone or a company, and they promise to pay you back with extra money! It's like when you lend your favorite toy to a friend, but they have to pay back more toys than you gave them. This extra toy is called interest.

So, a financial asset is like a toy that helps you make money by buying it and selling it later, or by owning a piece of a company, or by lending your money and getting more money back in return!