Friday, January 4, 2013

Where Does She Get Her Money?

Jacob seems to be growing up way too quickly lately (well both of my kids if I want to be honest). Jacob came up to me last night and we had the following conversation.

Jacob: Where does Grandma get her money?
Me: What do you mean?
Jacob: She doesn't work anymore (she retired 2 years ago).
Me: She saved money for retirement and Grandpa has what is called a pension. It's money he is paid by his old boss after he retires.
Jacob: So they just pay him without him working???
Me: Yes. It's less than when he was working but they do continue to pay him every month.
Jacob: Are they going to pay you when you retire?
Me: I have a retirement pension and I also have been saving for retirement.

I'm not sure how much Jacob really understands but then I'm not sure how much I completely understand about pensions either. At least he knows that Grandma and Grandpa aren't stealing their money.

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