Saving for a Rainy Day
Have you heard the phrase “Saving for a Rainy Day”? Do you know what it means?
So think about two families who live in houses beside each other. They both have the same amount of money but Family A spend all of their money on presents for each other, on foreign holidays and on a new car. Family B spend some of their money – but each week, they go down to the credit union to put a small amount away. Then one day, a huge storm comes and it makes a hole in the roof of both houses and water starts to leak in. So what do the families do? Family A have spent all of their money so they need to get a bucket to put under the drip and the bucket needs to be emptied every hour. Family B, on the other hand, have set money aside for a rainy day. They go to their local credit union, take out some of their savings and get a local builder to fix the hole in the roof straight away.
That’s what saving for a rainy day means. It is putting aside some money to use at a time when you need it most.