Nicolas Boucher on LinkedIn: Cash explained to Kids Cash flow is the money that comes in and out of a… | 153 comments (2024)

Dhinesh - Fitness instructor

Fitness Coach || Certified Personal Health & Wellness Trainer

10mo

Now, kids' piggy bank operates with more healthy finance knowledge than their parents. Good one Nicolas Boucher 👏 👏 👏

Ehtisham ul Haq, ACCA

Big 4 Auditor who's passionate about AI, Data Analytics and Visualizations

10mo

Interesting, so do you think certain industries need to be more "Cash" literate, considering how their working capital works, would love to see your post on that too!

Lejla Čorhodžić

CEO at KimTec | Leading IT Distribution, Innovation, and Sustainability |

10mo

Cash flow: The amount of money you put into your piggy bank and the amount of money you take out of it. For example, if you get $5 in allowance every week and you save $3 in your piggy bank, your cash flow is $3.Capex: In this case, a capital expenditure might be buying a new piggy bank that can hold more money. This would be an investment in something that will help you save more money in the long run.Net income: Let's say you save $3 in your piggy bank each week, but you also spend $2 on candy. Your net income would be $1, which is the amount of money you have left over after you've paid for your expenses.Liquidity planning: This is like planning ahead to make sure you have enough money for things you want or need in the future. For example, if you know you want to buy a new toy that costs $20 in a month, you might start saving $5 per week in your piggy bank to make sure you have enough money when the time comes.

Tanya Oakley

Oakley Protection Services

10mo

This is so important. From a Financial Services background, I've always informed my children of all important financial matters they need to be aware of. They have been online banking since the age of 11 & understand the importance of maintaining a good credit score. Now working, albeit part-time whilst at college, they have separate savings accounts for different goals. They tell me their friends used to be in awe of their understanding of finance at such a young age & it just amazes my that the basics in financial matters isn't part of the curriculum.

Joe Jones

Recruiting Senior Finance Professionals for the World’s Best Brands Filling Roles with Experience and Expertise, not Sales.

10mo

With the greatest respect to you and this very nice document, if I sat my 13 year old down and told him I was going to explain CAPEX to him, he would probably laugh for over an hour

Karolina S.

Founder at iTasameem Digital Solutions

10mo

I dont think my kid would understand any of that. The terms income, invest, cahs flow, expense, liquidity, even the word Finance is not easy to explain to kids. Beside that there is a lot of more useful information that kids need to learn and know in order to grow and be something in this world. Talking about Money is not a priority. Talking about how to be useful member in a society and do good, and grow, and leave good track behind after leaving, is what really matters, teaching the kids the manners and ethics, what is hard work and what is smart work, how to differenciate between smart work and stolen work. Unless you are talking about 12+ kids maybe yea its good start for real life meanings, but not to 5-10 years old kids making them learn and care about money and think about money instead of enjoying the sun and playing and cherishing childhood. They still have time to learn those why taki g away their childhood with so serious and broad topic. Thats just my opinion.

Iftekharul Islam

21 • Reels Maker • Email Signature Designer ➡ Want To Earn 10,000$ In 2023

10mo

It's important to learn about cash and how to use it responsibly. When you receive cash, it's a good idea to save some of it in a piggy bank or a special place. Saving money helps you reach your goals and buy bigger things in the future. It's also important to be careful with cash and not lose it, as once it's lost, it's challenging to get it back.

ManyMangoes

1mo

🌟 "An investment in knowledge pays the best interest." - Benjamin Franklin.💡Cash is like the fuel that keeps a business's engine running smoothly. Just like you need to budget your allowance to buy toys and snacks, businesses must manage their cash to grow and succeed. 🚀🐷 #FinancialLiteracy #CashIsKing

Grc V.

10mo

Wow, Nicolas Boucher ! What a fantastic breakdown of cash flow for kids! This makes it easy to understand the concept of money coming in and going out, not just for kids but for anyone new to the world of finance. I particularly appreciate how you've separated net income from cash flow, as they are often misunderstood to be the same. It's also great to see the concepts of capital expenditure, liquidity planning, and responsible financing explained in such accessible terms.If I were to add another analogy to explain cash to a kid, I might compare it to a school backpack. Imagine the backpack is the business. Homework assignments coming in are like expenses, and completed homework going out (to be graded and returned) are like income. If you manage your assignments wisely, you'll have a balanced backpack - not too heavy, not too empty - just like maintaining a healthy cash flow in business.

Mo A.

Senior Administrator | Cloud Apps Maker | CD Business Architect

10mo

This is awesome!It will help me and future kids