Basic Money Concept You Must Teach Your Kids:
Basic money concept is best things in life may be free. But most things cost money, as song writers Buddy DeSylva, Lew Brown, and Ray Henderson once said. It costs money to buy toys and candies, to go to the movies, and to rent video recordings.
While our forefathers may have bartered for many things, such as a chicken for a doctor’s visit or a basket of eggs for a bolt of calico, we now rely on actual cash.
Adults realise that the teeny-tiny dime is more valuable than the larger nickel and penny, but children may not. Understanding what money is all about is, thus, the first step in learning about money and finance. Lets discuss about the Basic money concept you must teach your kids in this blog.
The ABCs of Money:
Basic concept money is any kind of trade. That used to pay for products and services as well as to determine the worth of items. Currency refers to the money in circulation in a country, such as coins and bills.
The ability to identify money and the ability to tender money and make change are the two most important abilities that children need to know when it comes to money, and the earlier they learn them, the better.
They are unlikely to gain these skills in school because most institutions focus on arithmetic rather than money. According to one expert, children can begin learning about money as soon as they are old enough to understand that they should not put it in their mouth.
You know your child better than anyone, so you know when you can begin. Your youngster should have mastered counting money and making change by the end of the first few grades in elementary school. You can move on to utilizing checks if your child is older or can already perform these activities.
Money comes in a variety of shapes and sizes, including metal and paper. Varied money units have different values which used to pay for various items. It is the denomination of the money that matters, not its size. These basic facts taken granted by adults, but they are the very things that cause problems for youngsters.
Building Blocks of Finance:
The Lincoln penny, Jefferson nickel, FDR dime, Washington quarter, and Kennedy half-dollar are all still in use today. The Susan B. Anthony dollar coin is still in use, while the Sacajawea dollar coin will begin to circulate in 2000.
The $1, $2, $5, $10, $20, $50, and $100 bills are still in use today. Bills in the denominations of $500, $1,000, $5,000, and even $10,000 no longer distributed in 1969.
The most crucial lesson to teach your child about money is that it is based on the dollar. Coins are fractions of that unit, but bills are multiples of it. A dollar is made up of 100 pennies, or one-cent coins; twenty nickels, or five-cent coins, are made up of a dollar, and so on.
Understanding that money is based on the dollar unit allows you to explain equivalents, such as the fact that 10 pennies equals one dime and four quarters equals a dollar note. Ask your child to consider how many different coin combinations could equal 25. (for example, three nickels and one dime). The solution is 14 different combinations (which includes simply using one quarter). You can play this game again with a different amount, such as 50 cents or a $1.
Always crucial to count the change you’re handed, regardless of your age. It’s the same as if you’d made the adjustment yourself (you’ll need to double-check the change-calculations).
Maker’s it’s also a good idea to say how much money you’re tendering (for example, “here’s $20”) so the change-maker doesn’t short you on change.
Making a Difference:
The loose coins in your pocket are referred to as “change.” It also refers to the discrepancy between the price of something and the amount of money offered to pay for it. Every adult has had to deal with a teen cashier who couldn’t make change.
They can’t make change because of today’s cash registers that tell them what the change should be, much like teens can’t tell time because of computerised watches. In fact, these cashiers were never taught how to make change. If you don’t want your child to become that adolescent, you must ensure that the concept of change does not go extinct. Making change is simple after your child is familiar with the various coins and bills and can count in multiples of these denominations.
There are numerous methods to complete the same task, just as there are numerous ways to tie shoes. Counting forward from the amount spent to the amount tendered is the simplest method for making change.
For example, if an item costs 68 and the tender amount is three quarters, or 75, count ahead with coins from the 68 cost as follows: 69, 70 (with a penny each), and 75. (with a nickel). To put it another way, the change should be 7 (two pennies and one nickel).
The subtraction approach is an alternate method. Subtract the item’s cost from the amount offered here. Subtract 68 from 75 to get 7, as in the previous example. Then add all the coins to get a total of seven (two pennies and one nickel).
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