What are unsustainable financial positions?

A financial position is like having enough coins in your piggy bank to buy ice cream, but an unsustainable one is when you spend more than you have, and the piggy bank starts getting empty.

Imagine you have a piggy bank full of coins. Every day, you take out some coins to buy candy. That’s fine if you only take out a few coins each day. But if you keep taking out way more coins than you add back in, like eating all your candy and not putting any new coins in the bank, eventually, the piggy bank will be empty. And then, you can’t buy candy anymore.

That’s what an unsustainable financial position means: when someone spends too much money without saving or earning enough to balance it out. It's like eating all your snacks and not adding any new ones back into the jar, soon, there won't be anything left!

Sometimes people might even borrow coins from friends (like taking a loan) just to keep buying candy. But if they keep borrowing more and more, eventually, they’ll have to pay it all back, which could mean no candy for a long time.

So an unsustainable financial position is like having too many treats but not enough money in the bank, it might work now, but it won’t last forever!