How to tell a child about money?
We offer you a scenario for teaching a child the basics of financial literacy. These tips are primarily aimed at children of primary school age. Taking these recommendations as a basis, you will be able to properly start communication about what finances are with your child, nephew, etc.
Let's figure out how and what to tell your child about money.
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There is one thing in the world that is necessary for almost all people. It is very difficult to live without it, but with it, much becomes available. This thing can take on any shape – turn into a doll, a designer, a laptop, a trip abroad … And there is no magic here!
I also have this thing, you also get it from time to time, and its name, I'm sure you know very well, is MONEY.
After all, you will not pay for the purchase of a mobile phone, say, with gingerbread? Or, for example, in order to buy a computer for yourself in a year, you will not save up ballpoint pens or felt-tip pens, and then try to exchange them in a store for the computer you need? I think you will save money.
And what kind of money is there? (Give the child the opportunity to think and answer).
Money comes in different types, shapes and colors. As a rule, each country has its own money: in the USA – American dollars, in China – yuan, in Ukraine – hryvnia, in Japan – yen. Foreign money is called currency.
How to tell a child about money?
Sometimes the same currency is used by a group of countries: for example, in many European countries, the euro is used. But regardless of the name of the currency, money in each country is still a special commodity that can be exchanged for anything.
Paper money is called banknotes, denominations. At first glance, paper
money is just color pictures, and if you have a color printer at home, it will not be difficult to print them.
So why don't people print money for themselves?
Not everything is so simple: real money has a multi-stage protection system so that it cannot be counterfeited, because counterfeiting money is strictly prohibited, you can go to jail for it!
In the country, the printing of money is completely controlled by the main bank of the country, and money gets to companies and people only in exchange for some actually produced goods or services, and not just like that, unreasonably.
And all the money can be divided into two groups:
1 Cash.
2 Non-cash money.
How to tell a child about money?
Cash (lay out banknotes and coins in front of the child, if possible from different countries) is the money that you see in the form of papers and coins. They can be in your piggy bank or wallet. Now you can carefully examine them (allow the child to examine the money).
Cash is the most common form of money because it is easy to hold and is accepted everywhere to pay for purchases.
True, there are sometimes problems with cash:
• they wear out, tear, get dirty;
• they can be stolen, they can be lost;
• sometimes there are difficulties with change, especially if you have a large bill.
What is non-cash money? (Give the child the opportunity to think and answer).
How to tell a child about money?
In the name of this money, the answer is also hidden – this is money that cannot be touched. They have no form – neither paper nor in the form of coins. How is this possible?
The fact is that cash can turn into non-cash and vice versa. To make such a transformation, it is necessary to take the cash to the bank for safekeeping. The bank will open an account for the person who brought him the cash.
The entire amount of money brought will be credited to this account in full. And instead of a wallet with banknotes and coins, a person will receive a bank account, which will contain as much money as he gave to the bank. A person will have an account number from which you can pay for everything you need. He will also be able to transfer money to this account, for example, his salary. This person will now be referred to as the account owner.
Now tell me what options for your sources of income do you know? (Give the child the opportunity to think and answer).
So (adding to the child's answer):
1 Pocket money;
2 cash gifts for birthday;
3 Cash prizes, for example, for winning contests and competitions;
4 Other.
Well done, we figured out the income with you.
If you get the right answers to most of the questions, you can safely praise the child, reward him with sweets. Thanks to this, he
will remember well his first lesson in financial literacy, and will continue to perceive the words “money", “finance”, etc. in a positive way.