Notional for Dummies

Notional is a word that might sound a bit complicated, but don't worry, I'm here to help you understand it in the easiest way possible! When we say something is "notional," we mean that it exists only in our minds or as an idea, rather than being concrete or physical. It's like when you daydream about going on a magical adventure with fantastical creatures. Those creatures are notional because they only exist in your imagination, and you can't actually see or touch them in real life.

Now, let's dive a bit deeper into the definition. Notional can also mean something that is based on theory or estimated, rather than being practical or realistic. Imagine you have a toy store, and you want to decide how much money you are going to make in the next year. You might make a notional estimate, which is like a guess based on what you think might happen, but it's not guaranteed to be exact because there are many factors that can influence the actual amount.

In addition to these definitions, notional can also refer to the value that something represents. For example, if you have a toy car, its notional value might represent the value of a real car, even though it's not an actual car. Or if you have a game with imaginary money, the notional value of that money is the value it represents within the game, not in real life.

So, in a nutshell, notional means something that exists in our minds or as an idea, something that is based on theory or estimated rather than practical, or the value that something represents. Remember, it's like daydreaming about amazing creatures, making an estimate for your business, or the value of imaginary money in a game. I hope this explanation helps you understand the word "notional" in a clearer way!