Money word

Bond

A loan you make to a company or government that pays you back with interest.

When you buy a bond, you're lending money and getting paid interest until it's repaid. Bonds are generally steadier than stocks, which is why older investors hold more of them. In a young child's long-horizon account, portfolios often lean more toward stocks for growth.

Explain it to your kid

"A loan you give that gets paid back with interest."

Related words

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MemoryBank is a display and education tool, not a financial advisor. Nothing here is investment, tax, or legal advice.