[PC Cooper]

So last night was an interesting night at home. I was asked by my 7 and 5 year olds why anyone would go to me for money when they can simply go to a bank.

He then asked if I owned a bank. As soon as the daydream fantasy my son created wore off, I was clearly not going to go into a long diatribe about what it takes to underwrite a submission and why some people simply can't get funds from a bank.

I simply said that I issue funds to businesses that the banks don't want to fund to. He seemed puzzled then like most kids in 2016, his attention span veered to his PS4.

In the most lay terms possible, how would one explain what we do to kids? I'm curious what the community at large may say to their own kids especially young ones as I was pretty much stumped.

[FUNd]

"Well, little Jimmy, you know the rich people? The ones with the shiny cars, big houses, and fancy boats?"

"We make them even richer."

[PC Cooper]

"Well, little Jimmy, you know the rich people? The ones with the shiny cars, big houses, and fancy boats?"

"We make them even richer."

Well said.

[Andy]

I have explained it to mine pretty similar. I told them that its a free country, and everyone can decide what they want to do. The bank can decide yes or no if someone asks them to borrow money. So if the bank says no, a business can ask me and maybe I will say yes.
I tell them think of someone who wants a dollar. So I will give them that dollar. And then for the next 5 weeks, they will give me back a quarter each monday. So after 5 weeks, I now have $1.25 So I started with $1 dollar, and ended with $1.25 And that is how I make money.
Obviously this is extremely simplified and not exactly correct ( a 5 week 1.25!), but enough for them to understand the basic idea.
They thought it was pretty boring haha, but they understand the basic concept.