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3 Things About Money

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Financial Education for Children - What is it?

 

EFinancial education develops a child's ability to understand financial systems. Financial education is what prepares an adult responsible for money, happy and fulfilled. It also includes concepts strictly related to money as well recurring income, interest, needs and desires or goods and services.

Fetiță citind pe pervazul de pe geam - 3 Lucruri Despre Bani
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Financial education for children  it should not be missing from the school curriculum. It is a type of education that prepares children for a better future, without the worry of money. It's a need, not a fad or a desire. 

Read on and find out 3 concepts about money, which you can explain to your child.  

If you want to have access to the content of this article at any time, in PDF format, along with a worksheet, download the eBook for free.

Why is financial education needed for children? 

Children need financial education in order not to suffer dinto the Cause money, to spend rationally and not get into debt.

As I said above - Financial education for children is not about money, but about financial systems. 

In Romania, the situation is tragic. In 2019, we are on the last place in terms of financial education, according to oneand study by Erste Group. Romanians neither save nor know how to manage correctly and efficientlynt money.  

monede intr-un vas - 3 lucruri despre bani
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Three lucRuri eessentials that your child needs to know about money  

Start talking to her babyhis your money from the moment he finds out that the money is not in his mouth. If he asks questions, it is clear that you should have a discussion with him on the subjectof this. 

Money does not have to be a scary subject or avoided. Money is a big part of our lives and it's a bad decision to postpone such discussions. 

If you don't know how to explain it to a small child, it's nothing - that's why we write specifically about Financial Education for Children, with a slightly different approach than for adults. Read on to see how do you answer a question to a child about money, which he will definitely put on you. 

If you want to have access to the content of this article at any time, in PDF format, along with a worksheet, download the eBook for free.

What is money?  

 A simple definition says that  

Money is a means of exchange, used to pay for goods, services and to measure the value of things.  

The little one will not only understand by definition but repeated practice will help him. For starters, show him the types of money - banknotes and coins - and explain the difference between them and, especially, the value eitherthat. 

3 lucuri despre bani - educație financiară grădiniță
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To assimilate what they learn, associates the types of money with different products he knows. (for example, a candy is 1 lei, the green banknote, while a toy is 50 lei, the banknote with Aurel Vlaicu)

Use the defining elements of each coin - colors, personalities on the banknotes or events and symbols on the coins. 

Download the free eBook with the worksheet which you can print and complete at any time. 

What is the money for? 

 

After you told him what is money and what are the types of money, it's time to explain the role of money. 

Money is given in exchange for goods or services, depending on the wavetheirs.

But the most effective way is to involve him directly in certain financial decisions - take him with you to the store, ask him for his opinion when you have to choose between two products, ask him to justify his decision. 

To better understand the idea of exchanges between money and objects or services, you can enter here as well the lesson about barter. For this, you can unleash your creativity with a story about ancient times when people did not have money but managed, making exchanges between them - furs on various plants, spices, materials, meat or services. 

As you explain more about money, more questions arise. 

educație financiară grădiniță
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How do you get money? 

 

Regarding what I said earlier, just as each product has a value, so the work done by someone can be quantified in money. In other words, money can be earned through provision of services or sale of goods.

Explain to the little one how older people have jobs and, to better understand, even tell him about your job or any case close to him.  

To understand on his skin, how to make money you can either give him the allowance, which is not exactly recommended because it will not fully understand the value of money, or pay him for various household chores. You can also help him do other things, such as sell his toysthey have to build the classic ice cream stand. 

If you want to know how to answer these three questions for your child, download the free book. It also contains a worksheet that you can print and complete at any time with it. 

If you want help with your child's financial education lessons, download the game Investory: Trouble on the toy planet for Android or for iOS and join the more than 20,000 responsible parents in Romania.

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