Have you ever seen a number in the trillions? It looks like this: 1,000,000,000,000. That’s a million millions! Now imagine more than $30 trillion. That’s about how much money the U.S. government owes—and that number is constantly growing. If you want to see the current total in real time (and watch it climb!), you can check out the U.S. Debt Clock at usdebtclock.org.
Why does the government owe so much money?
Just like families have bills to pay, so does the government. But instead of groceries and rent, the government is responsible for things like roads, schools, the military, healthcare, and social programs. These things cost a lot of money. For example, building just one new high school can cost tens of millions of dollars.
To pay for everything, the government collects taxes. These come from individuals and businesses in many forms, including income tax, payroll tax, and corporate tax. In fact, about 54% of the federal government’s money comes from individual income taxes, 30% from payroll taxes, and the rest from things like corporate taxes and excise taxes on specific goods. But even with all that money coming in, it’s not enough to cover everything the government spends—so it borrows the rest.
How does it borrow money?
Mostly by selling something called Treasury bonds, bills, and notes. When a person, business, or even a foreign country buys one of these, they’re basically loaning money to the U.S. government. In return, they get paid back later—with interest. The difference between a bond, bill, or note is just how long it takes to get paid back, anywhere from 1 to 30 years. Many people consider these a safe investment because the U.S. government almost always pays its debts.
The national debt has grown over many decades. It doesn’t come from one single president or event—it’s the result of many years of spending more than we bring in. This is called running a deficit. Each year the government spends more than it earns, it adds to the overall debt, which has piled up to the huge number we see today.
Who decides how the government earns and spends money?
That job belongs to Congress, which includes the Senate and the House of Representatives. These elected officials vote on budgets, taxes, and spending bills. It’s a big job, and it takes a lot of debate and compromise to make decisions. No one person can decide how the money is used—it has to go through a process where many people have a say.
What’s the solution to our national debt?
Fixing the national debt isn’t easy. One option is for the government to spend less, but that usually means cutting programs people rely on. Another option is to raise taxes, but that’s often unpopular with voters. Plus, any changes have to be approved by Congress, which takes time and agreement across different political views. That’s part of the reason the debt keeps growing.
If there’s one important lesson to take away from all this, it’s that spending more than you earn—whether you’re a country or a kid—can lead to big debt. Budgeting, saving, and thinking carefully about money are smart habits that can help you stay in control of your finances. Even though you’re not running a country, your money choices still matter!
