What T-bills are
Understand why t-bill safety has two components: (1) sovereign backing — the federal government's obligation, considered very low risk, (2) short duration (91-364 days) — limits exposure to interest rate changes.
In this lesson
What T-bills are is part of Treasury Bills Lab. This preview shows how investment-universe connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.
Think about this money choice
Imagine this situation: You lend the Nigerian government 500000 in local currency by buying a 91-day T-bill at 18% annual rate.
How it works
T-bill safety has two components: (1) sovereign backing — the federal government's obligation, considered very low risk, (2) short duration (91-364 days) — limits exposure to interest rate changes. Both make T-bills the closest thing to risk-free investment in Nigerian naira.
Apply it to a real decision
Real-life money moment: You lend the Nigerian government 500000 in local currency by buying a 91-day T-bill at 18% annual rate. What do you receive at the end of 91 days? The key lesson is: T-bill interest: 500,000×18%×(91/365)=22,397≈22,500.
Activity preview
Connect the ideas
Use the lesson to complete this short practice activity.
Try one real money action
Open Tasks and submit proof for one task, or open Requests and make a deposit request. Parent approval can happen later.
Quiz preview
Treasury bills are:
You lend the Nigerian government 500000 in local currency by buying a 91-day T-bill at 18% annual rate. What do you receive at the end of 91 days?