Money Explaination For Kids

Money is any item or medium of exchange that people and businesses accept in the payment for goods and services, and for the repayment of debts. Economies depend on money to facilitate transactions and power economic growth. ready to start learning about money from pre-school age. That’s when they understand how to count and can see that they need to save their pocket money if they want to buy something they really want. As they get older, you can help them develop a deeper understanding by making saving and spending a part of their daily routines. At the grocery store, for example, you can talk about why things cost what they do – is it because of the brand? Or better ingredients? Or to pay workers fairly?

Unlocking the Secrets of Money: What You Need to Know

To understand how money works, you can also give your child some coins to play with and explain that each one has a different shape, colour or size. You could then work together to sort them by those characteristics, and count them together. Then, you can show them that these are the same coins you use to buy food at the supermarket.

You can also encourage them to track their spending and to prioritise their purchases. Teach them that they need to make sure they have enough cash to cover the essentials (like food and clothing) before they spend their ‘wants’ (video games, snacks, clothes). When it comes time to pay bills, you can talk about how you work hard for your income and that when you tap your card it talks to your bank where you keep the money you earned that day.