Rainy day fund

Imagine you have a piggy bank. Whenever you get some money from your parents, you put a little bit of it in your piggy bank. One day, you want to buy a toy that costs a lot of money. You check your piggy bank and you realize you have enough money to buy the toy!

Now, let's imagine that instead of a piggy bank, your parents have a rainy day fund. They put some of their money into this fund every month, just like you put money in your piggy bank. But instead of saving for toys, they are saving for something that costs a lot of money, like if something goes wrong with the house or if they lose their job.

This rainy day fund is like an umbrella. Just like an umbrella helps you stay dry when it's raining outside, the rainy day fund helps your parents stay financially secure during tough times. They can use the money in the fund to pay for things they need, like fixing the house or paying the bills, without having to worry too much.

So, just like you should always keep some money in your piggy bank for when you need it, your parents should always keep some money in their rainy day fund for when they need it. This way, they can be prepared for anything that comes their way.