This afternoon, Albert and I were watching Suze Orman Show. While I was tacking in Albert's blanket before saying goodnight...
Albert: What is emergency funds.
Me: In life now there are many uncertainties that include the work of each individual. We need the emergency funds so in case Daddy lost his job, we still could eat, have your piano/swimming/french lessons, school allowances, school fees, transport allowance, pay bills and all our expenses while he is looking for new work.
A: Why do you need 8 months emergency funds.
M: It's the safest span of time to get another job.
A: Is the emergency funds the same as savings.
M: They are different piggy banks. You can use savings if you want to buy something that is not included in your monthly expenses.
A: oh dear, i only have one piggy bank. I only save for my savings. I never save for my emergency funds.
M: You don't need to save for your emergency funds yet because you're still our responsibility.
M: Can we sleep now...
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