Financial instrument

A financial instrument is like a toy that people can play with to make money. Just like you might have a toy like a toy car or doll, grown-ups have financial instruments they can use to make money.

Some financial instruments are like toys that you can hold in your hand, like coins or paper money, also called currency. Other financial instruments are like toys that you can't hold, but can only see on a computer screen or paper, like stocks or bonds.

Some financial instruments are easy to play with, like buying a toy with your pocket money. Other financial instruments are more complicated and adults need to learn how to use them properly before they can play with them.

Just like toys, financial instruments can be risky to play with if you don't know what you're doing. Adults need to be careful when they play with financial instruments because they could lose money if they don't play with them properly.

So, financial instruments are like toys that grown-ups can play with to make money, but they need to be careful and learn how to play with them properly before they start playing.