Money Explanation for Kids


Money explanation is a complicated concept for kids, but it’s essential that they understand the basics sooner rather than later. They need to know how money works and where it comes from, so they can start making better choices for themselves about saving, spending and giving.

Kids can be interested in the subject of money — especially when you find ways to make it fun. For example, you can show them how coins have different shapes, colors and sizes, or have them play a game of sorting the coins by those characteristics. You can also help them prioritize what they want to buy with their allowance, encouraging them to save for things that matter instead of just blowing it all on a big-screen TV or new toys.

Money Matters: Navigating Personal Finance Challenges

To be considered money, an asset must meet three basic criteria: 1) medium of exchange; 2) store of value; and 3) unit of account. That means that if you have something like a piece of gold or even Kent cigarettes, it does not qualify as money because it is not widely accepted as a medium of exchange.

Another thing that makes money useful is that it keeps track of the relative values of goods and services over time. This is what gives it its function as a store of value, allowing people to compare the price of various goods and services and make informed decisions about how to spend their money.

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