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

Get Real With Money: I Want A Basketball [Show Kids How To Spend Within Their Means]

My second son tried out basketball with some neighbourhood friends last week and oh boy, he was hooked when he managed to shoot 2 goals. He came home letting us know that he wanted a basketball. I was inclined to make him wait. I didn’t want to promote this instant gratification thing in our family whereby a child asks for something and he gets it … Continue reading Get Real With Money: I Want A Basketball [Show Kids How To Spend Within Their Means]

Get Real With Money: Saving Up for X-box or Smartphone [Delayed Gratification]

After lunch, the kids happened to want to visit a toy store today (Kiddy Palace). As we agreed to go in without buying anything (because I wasn’t going to buy them anything), my eldest said he wanted to check out if there’s anything he can buy with his piggy bank money. He has around $35 in savings. I said okay and we entered the store. … Continue reading Get Real With Money: Saving Up for X-box or Smartphone [Delayed Gratification]

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}

DIY Piggy Banks To Make Saving FUN!

Little ones will pay more attention to saving when they have cute piggy banks to look at everyday. They’ll definitely want to drop in a coin or two just so they can admire their cool DIY piggy banks. That’s when they start having the habit of saving. What more can you ask for? Here are some really beautiful DIY piggy bank ideas I found on … Continue reading DIY Piggy Banks To Make Saving FUN!

Explaining Diversification to Kids {With FREE Worksheets}

Mother Hen, Her Eggs and The Boy A story about the importance of diversification – for kids an original story by Investor Kiddo   There once lived a little boy on a farm with his family. His favourite thing to do was to visit the chicken coop every morning after breakfast. He wanted to see if the hen has laid any eggs. But more importantly, … Continue reading Explaining Diversification to Kids {With FREE Worksheets}