What is Passive Income?

First we need to understand that there are two types of income: active and passive. Active income is money received in compensation for work given. The majority of adults in the working age are earning active income via salary or hourly pay. The moment they stop working, their flow of income stops. Passive income is earnings derived from a rental property, limited partnership or other enterprise … Continue reading What is Passive Income?

Why We Don’t Give Our Kids Allowance – The Importance of Work

We do not give our children allowance because we believe money should be rightfully earned. Now before you think my kids have to earn every single cent for their living, allow me to say that we do give them pocket money to school because that is a necessity. As for toys, sorry, that’s definitely not a necessity. So they will have to earn and save … Continue reading Why We Don’t Give Our Kids Allowance – The Importance of Work

Teaching Kids About Stocks In Investment {With Printable}

What are stocks? Let’s say you really like McDonald’s and you want to be one of the many owners of The McDonald’s Corporation, you buy their stock MCD from the New York Stock Exchange (NYSE). Remember how you received a certificate when you graduated from kindergarten, which was proof you finished all your lessons?  Well, when you buy stock from McDonald’s, they give you what … Continue reading Teaching Kids About Stocks In Investment {With Printable}

The M&M’s Game: Introduction to Compound Interest

Compound interest is the addition of interest to the principal sum of a loan or deposit. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest. When you deposit your money in a bank savings account, you earn interest. So if you open a savings account with $1,000 and your interest rate is … Continue reading The M&M’s Game: Introduction to Compound Interest

The 5 Most Important Money Lessons To Teach Your Kids {with printable}

What our kids think about money: When I said we didn’t have enough money to buy a toy that he wanted, my 3-year-old suggested I go to the bank and withdraw more money. When my 5-year-old took loose change from the table-top to buy a can of soft drink, he said the money was his because he “found it”. My 7-year-old asked why the government won’t simply print … Continue reading The 5 Most Important Money Lessons To Teach Your Kids {with printable}