What to Teach About Money to Kids in Kindergarten?
We can start teaching our kids about different money concepts at different ages. Let's overview what can we teach about money to our kids in 4-6 years old when they are in kindergarten.
Money is a fact of life at any age, in any situation. We can start teaching our kids about different money concepts at different ages. Contrary to what is thought, this will prepare them for a mindset where they can manage their money in order to protect quality of life, which will not make them "scrimy" with a negative greed for money. Let's start with kids in kindergarten in this post and then continue with primary school, secondary school, high school and university in next posts.
What can we teach about money to our kids in 4-6 years old?
In fact, many of you may desire the financial freedom of your children because your childhood was difficult or because no one taught you anything about money when you were growing up and you learned it by experience. For these reasons, talking about money with our children is a wonderful development. But talking in sensible level is important. Otherwise your effort will go down the drain.
Where money comes from
You can start by asking them where they think money comes from. What do they think people do to get money? What jobs do they know of that people do to earn money?
Once they've had a chance to share their ideas, you can explain that money is a way of exchanging goods and services. People work to provide goods and services, and they are paid money for their work.
You can also explain that working for a company or in own business is very good thing and money is not main target of working.
While talking about these you can play games and make activities. There are many games and activities that can help kids learn about money.You should be patient. They are little 4-6 years olds. It may take some time for your child to fully understand where money comes from.
Pocket money and salary
Pocket money is money that you give your child regularly, usually on a weekly or monthly basis. It's a way of teaching them about money and how to manage it. You can give your child pocket money for doing chores, or just as a way of showing them that you love them and want to help them out.
Salary is the money that adults get paid for their work. It's the amount of money that they earn each week or month for doing their job. Salaries can be different depending on the job, the person's skills, and the company they work for.
Here are some examples that you can use to explain pocket money and salary to a 5-year-old kid:
Pocket money is like a small allowance that you get every week. It's for you to spend on whatever you want, like candy, toys, or going to the movies.
A salary is the money that you get paid for working at a job. It's the amount of money that you earn each week or month for doing your job.
When you grow up and get a job, you'll get a salary. You can use your salary to buy things that you need, like food and clothes, and things that you want, like toys and vacations.
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Bills and coins
Yes, they don’t throw coins in their month now, they are bigger and smarter : ) Then let’s explain them bills and coins.
Bills are pieces of paper money that have different values. They are usually larger than coins and have pictures of presidents or other important people on them. Bills are like big pieces of paper money. They have different values, like $1, $5, $10, and $20.
Coins are small pieces of metal that have different values. They are usually smaller than bills and have pictures of animals or other objects on them.Coins are like small pieces of metal money. They have different values, like 1 cent, 5 cents, 10 cents, 25 cents, and 50 cents.
You can use bills and coins to buy things at the store. You can also use them to save money in a piggy bank.
Difference between needs and wants
Understanding difference between needs and wants is not a topic only for kids but it is crucial to understand for young and adults as well. Because when you spend your income first in wants you may have empty wallet in the end of month. Having a smart flow is very important for money management.
Needs are things that we need to survive and live a healthy life. They include things like food, water, shelter, clothing, and medical care.
Wants are things that we would like to have, but we don't need them to survive or live a healthy life. They include things like toys, games, candy, and new clothes.
I hope these above ideas will help you to start financial literacy journey with your kindergartens.