What to Teach About Money to Kids in Elementary School?

Money affects all of our lives. It is beneficial for each individual to have knowledge and awareness of managing money. Let's overview what can we teach about money to kids in elementary school.

Whether we like it or not, money affects all of our lives. Therefore, it may be beneficial for each individual to have knowledge and awareness of making money and managing money in some way. In a previous post, we talked about what we can teach our kids in kindergarten ages about money. I have compiled few ideas for our kids in elementary school in this post.

Teaching Money Concepts to Kids in Elementary School

My son is 7 years old and will start 2nd grade in next term. He learned these substances in the natural flow of life. His latest budget plan was for the toy that he wanted to buy from Vienna where we went during the school break in last April. He listed on a piece of paper as follows:

✅ The price of the toy

✅ The money in his wallet

✅ The missing amount

✅ The number of days left for our departure

✅ The amount he will ask me to add daily to reach the price of the toy. 😁

This was a good start for him and now he is doing budget planning more accurate and take responsibilities for his target.

Let’s review other things we can teach in these ages.

History of money from seashells to Bitcoin

The history of money is a long and fascinating one, dating back to the earliest civilizations. This topic has advantage and very useful to tell kids as it is able to make story telling.

• In the beginning, people bartered goods and services with each other, but this system was inefficient and cumbersome. As a result, people began to use objects of value, such as seashells, livestock, and metal, as a medium of exchange. These objects were eventually replaced by coins, which were more durable and portable.

• In the 17th century, paper money was introduced. This was a major innovation, as it allowed people to store their wealth in a more convenient form. Paper money was backed by gold or silver, so it was still considered to be a form of real money.

• In the 20th century, fiat currency was introduced. Fiat currency is not backed by any physical asset, but it is still accepted as a form of payment because it is issued by a government or central bank.

• Bitcoin is a relatively new form of money that was created in 2009. Bitcoin is a digital currency that is not issued by any government or central bank. It is based on a peer-to-peer network, and it is secured by cryptography.

Banks, bank accounts and ATMs

Teaching kids about banks, bank accounts, and ATMs can be a fun and educational experience. Here are some tips on how to do it:

• Start by explaining what a bank is. A bank is a place where people can keep their money safe. It also offers a variety of services, such as checking accounts, savings accounts, and ATM cards.

• Talk about the different types of bank accounts. There are two main types of bank accounts: checking accounts and savings accounts. Checking accounts are used for everyday expenses, such as buying groceries and paying bills. Savings accounts are used for saving money for the future.

• Explain how to deposit money into a bank account. You can deposit money into a bank account by going to the bank in person, by using an ATM, or by using online banking.

• Teach kids how to write checks. Checks are a way to pay for goods and services without having to carry cash. They can be used to pay for anything from groceries to rent.

• Show kids how to use an ATM. ATMs are machines that allow you to withdraw cash from your bank account. They can also be used to deposit money, check your balance, and transfer money between accounts.

• Talk about the importance of safety when using banks and ATMs. Kids should never share their PIN number with anyone. They should also be careful when using ATMs in public places.

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Cash, credit/debit cards, barcode and Bitcoin payments

Once you have explained the different payment methods, you can start to teach kids how to use them. Here are some tips:

• Start by explaining what cash is. Cash is physical money that is made of paper or coins. It is the most common form of payment in the world. Cash is the easiest payment method to understand and use.

• Talk about the different types of credit and debit cards. Credit cards allow you to borrow money from a bank to pay for goods and services. Debit cards allow you to pay for goods and services using money that is already in your bank account. Credit and debit cards can be more complicated to use than cash, but they can also be more convenient.

• Explain the importance of paying off credit card debt in full each month. Carrying a balance on a credit card can be expensive, so it is important to pay off your debt in full each month.

• Explain how barcodes work. Barcodes are a way of representing numbers and letters in a machine-readable format. They are used to scan items at the checkout counter.

• Introduce Bitcoin. Bitcoin is a digital currency that is not issued by any government or central bank. It is based on a peer-to-peer network, and it is secured by cryptography. Talk about the benefits of using Bitcoin. Bitcoin is a secure and anonymous way to pay for goods and services. It is also a global currency, so you can use it anywhere in the world.

I hope these above ideas will help you on the journey of financial literacy of your kids.