Once upon a time, there was a little girl named Lily who lived in a small town with her parents. One day, her parents told her that they were going to buy a lot to build their dream home.

Lily was very excited and asked her parents how they were going to buy the lot. Her parents explained that they were going to take out a lease on the lot and then leverage the property by taking out a loan.

Lily was a little confused, so her parents explained that a lease is a contract that allows them to use the lot for a certain amount of time, and leverage means using something to gain an advantage. In this case, they were using the lease to get a loan to buy the lot.

Lily was still a little confused, so her parents explained that a lien is a legal claim on a property that secures payment of a debt. The bank was putting a lien on the lot as collateral for the loan, which meant that if her parents didn't make their payments, the bank could take the lot.

Lily was amazed at how smart her parents were and couldn't wait to see their new home on the lot. And so, with the lease, leverage, and lien in place, Lily's parents were able to buy the lot and build their dream home.

Lily learned an important lesson about finances and was proud of her parents for making smart decisions. And they all lived happily ever after in their beautiful new home.

Reflections

1. What is a lease?
2. What is leverage?
3. What is a lien?
4. Why did Lily's parents take out a lease on the lot?
5. How did the bank use a lien to protect themselves when lending money to Lily's parents?
6. What did Lily learn about finances from this story?
7. How did the story end for Lily and her parents?