One of my friends’ family had a fire. What will happen to them? They’re OK, but they’re living in a hotel. I know that’s expensive, who pays for it? How do they get their stuff back after a fire? I know the Red Cross can’t buy them everything they need.
A question like that is the perfect chance to explain San Francisco Renters Insurance to them without dragging them too deep into the specifics. By doing so, you also have a chance to reassure them that their friend’s family will be OK in time.
Talk To Kids About Insurance In Middle School – After Someone Has A Loss
After someone they know has a loss is actually a good time to talk to kids about insurance in middle school and to expose them to the idea that there are risks in the world, but that’s why we buy insurance to protect the people and things that we care about. At this point, they’re more than aware that bad things happen in the world, and that sometimes it’s just because they happen.
Kids in middle school are also aware of the concept of risk, to some degree. This is often about the age that they start actively plotting to hide things from you, even when they’re things that wouldn’t cause real problems, like their personal thoughts. They perceive the risk of embarrassment, and so sometimes they keep them from you. A risk is just the chances of something with a bad outcome happening to you, so they can understand that there’s always some chance that something like a fire will happen to someone they care about.
The good news is that in that situation, their friend will be OK because of insurance, and you can tell them that. Talk to your kids about insurance in middle school after someone they know has a loss, and you’ve given them a concrete example of why insurance is necessary and worthwhile, and how to hedge against risk. This will serve them well later in life and help them to make better decisions in many areas of life.
You can tell your kids that the insurance will buy new things for the person who suffered the loss. It’s a great chance for them to learn about replacement cost vs. actual cash value, as well. If their cell phone or computer suffered a loss, they’d want to get enough money to pay for a new one, right? That’s why you don’t skimp out and get actual cash value, because the depreciated value is never enough money to buy new property.
It’s also worth mentioning to them that insurance can pay for the incidental expenses after a loss, like a hotel for their friend who had a fire loss. And since they have a concept of personal responsibility at this point, you can let them know that sometimes people do things without thinking about the consequences – like walking away from food on the stove – and that if the consequences cause loss to other people, like a fire, that insurance can pay for that accident resulting from negligence. That’s what it’s there for, otherwise the costs would be too much for the person whose fault it was to bear.
Talk To Kids About Insurance In Middle School – Why It’s Different Than Savings
When you talk to your kids about insurance in middle school, you should make sure to clarify that it’s different from and does not take the place of savings. Savings are for emergencies or large future purchases, and they’re a great personal finance strategy. But what happens if there’s a loss when you’ve just started saving money and you don’t have much in the bank?
Insurance doesn’t have to accrue value. If the policy is new, it pays the same for the loss as it would if it had been in force for ten years. Savings, on the other hand, take time to accrue. You should have both, ideally, because neither is a substitute for the other.
The insurance conversation is a good chance to instill other positive personal finance habits in your kids, as well. Is there a time when you had something happen that wiped out your savings, but that insurance wouldn’t have covered? Or something that insurance covered that would have wiped out your savings and cost far more on top of that? That might be a good example point for this conversation with your kids.
Talk To Kids About Insurance In Middle School – How Much It Costs
If you talk to kids about insurance in middle school, the cost is an important factor. Your kids have a pretty good idea about the cost of many things, but you may still be better off handling the cost of renters insurance in relative terms. For example, in San Francisco, renters insurance is likely to be equivalent to around one percent of your monthly rent. In a nutshell, you’re making very small payments to transfer the risk of something big happening, in which case your San Francisco Renters Insurance would cover that large expense.
The national average price of renters insurance is just $187.00, according to the III. That works out to as little as fifteen dollars per month. The vast majority of families can budget renters insurance easily at those prices.
Additionally, it's important to note that renters are at a significantly higher risk of experiencing loss than homeowners. Renters occupy roughly one third of total housing stock in the country, and yet they are fully fifty percent more likely to experience theft than homeowners, according to the Bureau of Justice Statistics.
It only costs a few dollars a month to protect your family, and this cheap renters insurance is a great way to mitigate the additional risks that come with being a renter.
Talk To Kids About Insurance In Middle School – People Who Go Without
You can’t talk to kids about insurance in middle school without talking to them about people who make the choice to go without renters insurance. Yes, it’s a choice, even in a housing market as crazy as San Francisco where many people are stretched to the breaking point. This is a great chance to make the point that there are some expenses that you prioritize over others. Families who are stretched to the breaking point because of rent prices in the Bay Area are the ones who can least afford a significant loss.
At an average cost of about fifteen dollars a month, just about anyone can afford a policy. Even though rent is expensive here, renters insurance really is not. Some people pay fifteen bucks for one cup of coffee, so there is usually some expense that can be shifted in order to be able to afford renters insurance in California.
Besides, in San Francisco, you can’t afford to find another apartment after a fire or other loss. Even if you could, you risk not being able to return to your apartment after repairs are made if you set up a home somewhere else. Since renters insurance pays for loss of use and covers your hotel stay while those repairs are being made, you stand a better chance of keeping your apartment – and your current rent payment – after repairs are made.
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