Money Talks: What Is Money?

ObjectiveTo help your children have a healthy understanding of what money is, where is comes from and how it's managed.
Description Kid Money

Money can seem mysterious to your children. Help your kids to understand what money is, how we use it and where it comes from by doing the following activity with them.

Steps:

1. Gather the following items:

  • Some coins and dollar bills
  • A pay check (or a fake pay check - you could make an allowance pay check for your kids)
  • A debit card
  • A computer with your bank statement (or a Bankaroo account set up with all of the numbers entered)

 

2. Bring your child to where you have this set up.

3. Point to the coins and bills and ask what is this? (Money) What do you know about money? Do you have any questions about money? Talk about what they already know about money and answer questions they have about it.

4. Point to the pay check? This is my/your pay check. What is a pay check? What do we get a pay check for? How do we make money? (Parents: work, sell things, invest, provide a service. Children: chores, create a business, collect coins, return bottles - try to think of as many ways to make money as possible.) Where does the money go when we earn it? (bank account, piggy bank)

5. Point to the debit card. Ask, "What is this?" Explain that a debit card is a part of your bank account. When you use your debit card, the bank takes money from your account and gives it to the store you are shopping in. If you have an automatic deposit for your pay check explain that your boss puts the pay check in the bank and your debit card takes the money out of the bank.

6. Show your child the bank statement. Show them how money is deposited and withdrawn from the bank using the debit card. -or- show them their Bankaroo account and show them that money is deposited when they earn money or withdrawn when they spend money. 

7. Ask if they have any more questions about money. Answer any questions that they have.

 

 

Complete When

Mark this activity complete when you have had a good discussion with your children about money and feel that they have a better understanding of where money comes from and how it's managed.

Track your progress and earn badges!

This activity is included in the following:

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Age Range 5    6    7    8   
Activity Type Lesson
Tags Expenses  Money  Income  Personal Finances  Banking 
CreatedCindyCindy
Last ModifiedRobRob

References

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