It was Sunday and it was a fair. The bustling market was a symphony of vibrant colours, with stalls adorned with fresh fruit and vegetables, multicoloured like rainbows, the aroma of spices wafting through the air and the sound of villagers' voices haggling to create a lively melody.

Ada was looking forward to meeting George to talk together about shells, stones, coffee beans, electronic money and bank cards. But George didn't show up that day or the next week.

Anxious and a little angry, she decided to go to his grandparents. That's how she found out that George was at home looking after his good friend Sorin, who had had a terrible accident. A keen and avid parkour practitioner, Sorin performed a new trick, which he hadn't practiced enough before the competition he entered at the last minute. Obsessed with the idea of showing what he could do and confident in his own strengths, Sorin chose to improvise more than is allowed in this athletic event that typically involves moving, running, jumping, tumbling and climbing from point to point in an urban environment. A single moment of inattention led to disaster. Fortunately, he is now recovering and doctors believe he will make a full recovery. It remains to be seen whether he will return to the same lifestyle or whether Sorin will choose to change his approach completely.

The rainy day seemed to mirror the sad situation Ada had encountered, with dark clouds looming overhead and raindrops dancing in the freshly mowed grass, seemingly underscoring the urgency of learning about financial protection, bodily integrity and health insurance.

As the clouds dissipated, the fresh scent of nature mingled with the reassuring presence of safety. Flower petals glistened dripping from the rain that had just fled over the horizon, reflecting the bright future that awaited George and Ada, who longed to feel the impact of healthy financial choices.

Returning to his grandparents, visibly affected by his friend's predicament, George told Ada the whole story. The unknown part was that Sorin had been to a competition in Poland and unfortunately neither he nor his parents had thought to purchase travel insurance that included an extreme sports component. In the absence of such a document, the family had to pay an extremely high amount for the medical services Sorin received abroad. This completely unbalanced the family's financial budget.

George: This is a situation I never imagined. I had no idea that if you don't have travel insurance and you're in such an event you can spend so much. It's hard for me to admit that it could happen to me or my family, but I think Sorin's accident should give us all pause for thought. Insurance should not be missing from our financial plan!

Ada: Please be more specific! I haven't travelled outside the country so far. Why would I need insurance?

George: This is just one example, Ada. I think it's time to think about what could happen to us and our families during our lifetimes and as such, mess up our financial accounts.

Ada: Give me a concrete example, please! I'd like to understand.

George: Your father has a car. Does he have insurance?

Ada: Yes, he has an insurance called RCA.

George: Great! Does he also have Casco?

Ada: What's a Casco? I don't think it does. In any case, I've never heard that term before.

George: RCA is a compulsory car insurance, whereas Casco is a voluntary car insurance. The second one, you can have it or not have it. But if you don't have it and you have an unwanted car event, instead of the insurer taking the risk, you have to pay the whole repair. It could make the bill extremely expensive.

Ada: Sounds complicated! I take it insurance gives us the ability to mitigate or mitigate some risks?

George: Exactly! Basically, the insurer takes over the risk and the policyholder pays the counter value of that policy in return.

Ada: Interesting! I had no idea. I see now that there is insurance for other events. You told me about the travel insurance and now this Casco. I'll ask my economics teacher about insurance.

George: Yes, I think it's a good topic to talk about at school and in the family. Look, we have insurance on the house we live in, my parents have life insurance and pension Pillar 2 and 3, the car has RCA and Casco, of course. Even my bike is insured. Even my mobile phone.

Ada: Wow! Very cool! But if the storm breaks one of the windows, does the insurer give you money for a new one?

George: It depends. If the windows are insured, yes. If they're not, then you'd need a reserve fund.

Ada: Are you starting with the funds again?! You drive me crazy with all that funding. What's this new one?

George: My brother Mihai, he is a student. He loves kiteboarding and that's why, in order to be able to buy improved versions of his equipment and, moreover, to be able to go out with his friends to areas with strong winds, he has set up a fund that he accesses only for this purpose and only when the amount needed is insufficient.

Ada: Pfff... now that you mention it, you should know that Grandpa has such a reserve fund too. He keeps the money in an envelope, handy. But he never touches it. He says that's ˝white money for a rainy day˝.

George: Ha, what an expression! A lot of sense I find in what you say. After all that's exactly what a reserve fund does. It helps you ˝save˝ money somewhere, in an envelope, a piggy bank or an account, so you only have access to it when you need it the most. It's best to forget about it. Incidentally, I've heard that the value of a reserve fund is recommended to be the value of six net monthly incomes.

Ada: In other words, if my allowance is 256 lei a month, the value of the reserve fund should be 1,536 lei. Wow! What a lot of money! With this money I could buy a lot of materials.

George: Hey, hey! Wait, that's not it! Your calculation is correct, but the allowance could be just for you to use after the age of 18. You shouldn't touch it until then. You can build up a reserve fund by setting aside a percentage of your pocket money each month, for example.

Ada: Man, you make me desperate! How much money do you think I have in my pocket?! A pittance! My parents give me 50 lei a week. I have 10 lei a day for school. How much money do you think I could save out?

George: I don't know, that's for you to decide! But I can tell you how I do it. I get 50 lei a week from my parents. On Mondays, I put 5 lei in the piggy bank, 5 lei in a jar labelled "emergency reserve fund", 5 lei in another jar labelled "savings". In concrete terms, I have a maximum of 5 lei/day for the 7 days of the week. You know I'm doing well and even saving extra. I've taught myself to take a sandwich from home to school and even a thermos of water or juice. My transportation pass is paid for by my parents, although I've seriously considered starting next semester walking, biking or scootering to school. It would take me a maximum of 30 minutes each day, round trip.

Ada: Well, what do you get out of it? Did you set out to save money for your family?

George: I can do that, yes. I really want to help my family. It's just that I negotiated with them, and they agreed, that they would still give me that amount, but on my bank card.

Ada: Do you have a bank card?

George: Of course! You can have one too. Any young person, even if they're under 14, can have a bank card and even an associated savings account. Of course, the account is managed by your parents or guardians until you turn 18. Plus, the money you leave there will earn interest. Month after month you get interest on what you've saved, including the interest earned up to the current interest date. Can you imagine how much money you'll be able to save this way after a number of years?

Ada: Great! Sounds like an easy way to put money away and make it grow. I don't really understand the whole interest-on-interest thing, but I'll tell my mom.

George: Glad to hear you want to do this! I don't know much about how it works either, but I've been meaning to calculate how much money I can accumulate for the future if I do what I suggested to you.

Ada: Please tell me! How much money have you saved so far?

George: I have already collected 18,250 lei, on which we have received interest year after year. I can say that the amount is much higher. In any case, I have been saving since I was 4 years old and whenever I get an unexpected amount of money I transfer it there. I'm very proud that I chose to do this.

At the water's edge, the majestic willow stood tall, its branches stretching out like a protective canopy. Ada and George stood leaning against the twisted trunk, seemingly contemplating the concept of financial security. Just as the willow withstood storms, they sought to understand the importance of building, through saving, a strong foundation for the unexpected.

DIARY PAGE | First STEP > Protection, Insurance, Safety

Think ahead about the positive and negative events that will inevitably occur in your life. Write down the ones that you consider very predictable.

Learn from other people's experiences, not just your own. You may discover how much you can gain by applying a simple rule you learned from others that you didn't think to put in real life at the time.

I'm sure you won't enjoy thinking about the negatives, but they are part of life and it's important to be prepared for absolutely anything.

Now, research on the internet, talk to people around you, ask your parents or friends what financial tools could help you to prevent and take over these risks. In any case, the final decision should be made with the help of people who specialise in these services, who can provide you with all the information you will need to make an informed decision.

In addition, consider opening a bank account with a linked card. There are many banks, including Revolut, that offer such services to young people, starting as young as 7 years old.

Did you know that...

Contingency insurance is the best protection you can take against unwanted financial risks and accidents that can jeopardise your life, possessions, physical integrity or ability to learn and work.

Mark Zuckerberg, the founder of Facebook, said that ˝the biggest risk is not taking any... In a fast-changing world, the only strategy guaranteed to lose is not to take risks.˝

Creating a reserve fund not only gives you mental comfort but also financial advantages, because any problem that arises can be solved with the financial resources you already have, without having to borrow or postpone other plans you may have wanted. Act wisely, think about the future and the importance of anticipation!