What is a Nest Egg?
The nest egg refers to money set aside in investment, money market, or savings accounts that is designated for some specific purpose. It may also be called a financial cushion, a safety valve, and a variety of other names. Some refer to retirement money specifically as their nest egg, and others have money set aside to later fund their children’s expenses like college, weddings or even down payments on a house. In order for nest egg philosophy to work, you must agree with yourself that nest eggs aren’t touched except for their intended purpose. It also helps to set aside an amount you plan to “feather the nest” with each month. In real life, when you find a nest, you are never supposed to touch the eggs, since birds may then reject them. Your nest egg should remain safe and untouchable, allowed to grow quietly in the background until it is needed for its intended purpose. It’s still important if you plan to invest your nest egg, to carefully consider the types of investments you can ma
(an egg the farmer leaves in the nest to hatch another chick) • What does this have to do with saving? (Mama explained that when you put money in a savings account in the bank, it “hatches” interest) • Explain that when people put savings in a bank, the bank pays the people interest. This means that the bank gives people a little extra money for saving. Interest is the price banks pay to encourage people to save at the bank. Interest is also the price people pay to borrow money. • Point out that when you save, you collect (accumulate) savings. The cubs first kept their savings in Sister’s piggy bank and the sugar bowl. Eventually, they put their savings in the bank. Now, when the cubs are at home, they can put what they save in Sister’s piggy bank and, after a while, take it to the bank. • Explain that students are going to create a “critter bank.” This is a bank that they can use at home. Maybe, after they’ve filled their critter bank, their parents will allow them to have a savings a
(an egg the farmer leaves in the nest to hatch another chick) • What does this have to do with saving? (Mama explained that when you put money in a savings account in the bank, it “hatches” interest.) • Explain that when people put savings in a bank, the bank pays the people interest. This means that the bank gives people a little extra money for saving. Interest is the price banks pay to encourage people to save at the bank. Interest is also the price people pay to borrow money. • Point out that when you save, you collect (accumulate) savings. The cubs first kept their savings in Sister’s piggy bank and the sugar bowl. Eventually, they put their savings in the bank. Now, when the cubs are at home, they can put what they save in Sister’s piggy bank and, after a while, take it to the bank. • Explain that students are going to create a “critter bank.” This is a bank that they can use at home. Maybe, after they’ve filled their critter bank, their parents will allow them to have a savings
