What credit is
Discover what credit is and why it matters for your financial safety and decisions.
In this lesson
What credit is is part of Credit Fundamentals. This preview shows how credit-debt connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.
Today’s money mission
You want to buy a ₦200,000 laptop now but only have ₦50,000. A lender says: "We'll pay — you repay over 6 months." That's credit. What's the catch?
How it works
Credit = borrowing money with a promise to repay later.
Apply it to a real decision
Real-life money moment: Adaeze borrows ₦50,000 at 15% annual interest to buy stock for her business. She repays ₦57,500 total. The ₦7,500 interest is the cost of using money that wasn't hers yet.
Activity preview
Connect the ideas
Use the lesson to complete this short practice activity.
Quiz preview
Credit is best described as:
You borrow 50000 in local currency to buy a laptop. You repay 62000 in local currency over 12 months. What was the cost of the credit?