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Ages 10+ · Money · Saving and budgets
An emergency fund
A storm cracksthe windowCosts 35, only12 come inThe jar coversa gap of 2337 coins stayin the jar
How the jar helped in the storm month.
The big ideaAn emergency fund is coins kept for surprises, often a few months of costs.

How it works

An emergency fund is coins kept for things nobody planned. Nico keeps his in a jar on a back shelf.

A fund is often a few months of costs. Nico's costs are 20 coins a month, so three months is 60 coins.

When a storm cracked the window, the repair cost 15 coins and the storm kept customers at home. The jar covered the gap, and the shop stayed open.

A surprise is still a surprise, but a jar makes it a smaller worry. A grown-up can help decide what counts as an emergency.

Months of costs020406080100120201 month402 months603 months1206 monthscoins
Months of Nico's costs, at 20 coins a month.
⛈️storm🚰burst pipe🏠leaking roof🚲burst tire
Surprises a fund is for.
A surprise• A cracked window• A burst pipe• A leaking roofA want• A new game• A sale on sweets• Bright new shoes
A fund is for surprises, not wants.

Example 1: How big is the jar?

  1. Nico's costs are 20 coins a month.
  2. Three months of costs: 20 + 20 + 20 = 60 coins.
  3. That is the size of his jar.

Example 2: The storm month

  1. The usual costs are 20 coins and the repair is 15 coins: 20 + 15 = 35.
  2. Only 12 coins come in.
  3. The gap is 35 − 12 = 23 coins.

Example 3: Covering the gap

  1. The jar holds 60 coins and the gap is 23.
  2. 60 − 23 = 37 coins stay in the jar.
  3. The window is fixed, and the shop stays open.

Example 4: Surprise or want?

  1. A storm cracks the window. Nobody planned it, so it is a surprise.
  2. A new game everyone is talking about can wait for a saving plan, so it is a want.
  3. A fund is for surprises, not wants.

Words to know

emergency fund
Coins kept for things nobody planned.
surprise
Something nobody planned that has to be paid for, like a repair.
costs
The coins that go out each month.
gap
How many coins short the month is.

Watch out

Try it

  1. Costs are 20 coins a month. How many coins are three months of costs?
  2. Costs are 35 coins and only 12 came in. How short is Nico?
  3. A burst pipe in the kitchen: is it a surprise or a want?
  4. The jar held 60 coins and Nico used 23. How many are left?
Answers: 1. 60 coins · 2. 23 coins · 3. A surprise · 4. 37 coins
Try at homeWith a grown-up, talk about a surprise that cost something, like a repair. How did they cover it, and what would help next time?
For grown-upsAsk about a surprise cost you have had, like a repair, and how it was covered. Keep it about how, not about your family's amounts.
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