|Agent Story Money & Me Workshop|
(In my school-wide assembly shows I cover earning, spending, growing and sharing your money. But for the grade-specific classroom workshops I ask the teacher to choose one of those four topics.)
My goal was to introduce these youngsters to the idea that there are three ways to earn money: active income, passive income and portfolio income. And with the help of a take-home craft and a memorable story about three little ferrets who have to figure out how to earn money to put in their pockets, I'm hoping that at least one of the kids will bring up the topic of income at the dinner table. "Hey, Mom, do you have any portfolio income?" Wouldn't that be cool?
Now if you are not entirely familiar with the terminology, here's your cheat sheet.
Think about what "active" means. It means moving, doing, being in action. When you earn money by working (either for yourself or someone else) that is what we call active income. You are working and you get paid. In a child's world, allowance is active income. Me do chores, me get paid.
It's really almost the opposite of active income. If you rent out a room in your house to an overseas student, you are making passive income. If you get an inheritance, that's passive income as well. Monthly cheques from the government like the Universal Child Care Benefit fall into this category of income. For kids, a good example of passive income is getting money in a card from Grandma. You don't really "work" for this kind of income.
This kind of in-coming money is both passive and active: you are largely passive, while your money works for you. Interest, capital gains, dividends and other forms of investment earnings fall into this category. The term portfolio comes from the practice of keeping track of one's investments in a portfolio or record book. If you have an investment that fits this category, show your kids your monthly statement. Point out the money that you have saved and invested and the amounts that your money has made for you. They'll get it.
|Teacher Feedback for Workshop|
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