Entrepreneurship · lesson 15 of 24 · free

Saving, reinvesting and borrowing — Entrepreneurship for kids

When your stall makes a profit, split it: save some for bad days and goals, reinvest some to grow (a second juicer, more seeds), and spend only the rest. Borrowing means using someone else’s money and paying it back with interest — the cost of borrowing. Simple interest = P × R × T ÷ 100. Children never borrow on their own: talk to your parents, and only borrow what you can surely repay.

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Business tip

Save, grow, borrow carefully — “keep some profit, put some back in, borrow only what you can repay”

  1. Saving keeps money for later; reinvesting puts profit back into the business; spending uses it on yourself.
  2. Part of the profit = profit × percent ÷ 100.
  3. Simple interest = P × R × T ÷ 100; amount to pay back = loan + interest. Borrow only with your parents.

Use it for: Deciding what to do with a profit, and understanding loans and interest in a family business.

Worked example: A small family shop borrows ₹500 from a bank at 8% simple interest per year. How much interest is due after 2 years (in ₹)? → 80

  1. Simple interest = P × R × T ÷ 100 = 500 × 8 × 2 ÷ 100.
  2. The interest is ₹80.

Check: Try it: decide how you would split ₹1000 of profit into saving, reinvesting and spending, and explain why ✓

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🏁 Lesson 15 test

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🖨️ Saving and Reinvesting Worksheet for Kids

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