I recently got a flu shot. I didn’t really look forward to being jabbed with a needle, but I definitely wanted all the help I could get in avoiding influenza.
As a bonus, the shot helped me have a great example to teach my children about money.
You see, I obtained a flu shot to prevent illness. In much the same way, I save money to prevent debt.
- WITHOUT equals “risk” If I chose to opt out of receiving a flu shot, I wouldn’t necessarily come down with the flu. However, my risk of illness would be substantially higher. If I chose to opt out of saving money, I won’t necessarily acquire debt. However, my risk of debt has increased. One car breakdown, appliance failure, or missed day of work without any saved money would result in debt.
- WITH equals “much less risk” Since I received the shot, my risk of illness from the flu has been greatly reduced. Saving money also reduces the chances of new debt. If I have money saved up, then a refrigerator failure would just be an annoyance instead of a financial catastrophe.
ACTION: Share this illustration with your children to teach them about the importance of saving (and, of course, the importance of a flu shot).
This post is part of a Kids & Money Series here at the wildly popular JosephSangl.com. Click HERE to read all of the posts in the series.