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Money Basics for Kids: Learning What Money Is and How to Use It

Money is something we see and use all the time! But what is it, really? In simple terms, money is what we use to buy things, from toys to food to clothes. Learning about money can be exciting because it helps you understand how to earn, spend, save, and count it. These skills will help you make good choices with money as you grow. Let’s break down the basics of money together!

What is Money?

Money is something that has value, which means people agree it can be used to buy things and pay for services. Instead of trading objects (like trading a sandwich for a cookie), money helps people buy exactly what they want. In the past, people used all sorts of things as money—such as beads, shells, and even animals! Today, most countries use coins and paper bills, along with digital money in banks or on cards.

Money comes in different forms. Coins are usually made of metal and come in different sizes and values, like pennies, nickels, dimes, and quarters in the U.S. Paper money, or bills, also comes in different amounts, like $1, $5, $10, and more. And digital money is what people use when they buy things online or with a credit card. All these forms of money have value, which helps us buy what we need or want.

Earning Money

Now that we know what money is, how do people get it? People earn money by working and doing jobs. Let’s look at some common ways people, including kids, can earn money:

1. Chores Around the House: Kids can often earn a little money by helping out at home. This could mean washing dishes, taking out the trash, or cleaning up. When parents pay you for doing chores, they’re rewarding you for your hard work!

2. Small Jobs: Older kids can sometimes do small jobs like babysitting, dog walking, or mowing lawns for neighbors. These jobs allow kids to earn money by helping others with tasks.

3. Creative Work: Some kids earn money by creating things to sell, like friendship bracelets or paintings. If you’re creative and love to make things, you could try selling items to friends or family.

4. Helping with School Fundraisers: Sometimes, schools hold fundraisers where kids can earn prizes or even small amounts of money by helping raise funds for activities. It’s another way of earning while helping your school!

Earning money takes effort, but it feels good to earn because it allows you to make decisions on how to use it.

Spending Money

Once you’ve earned money, you might feel excited to spend it! Spending money means using it to buy things you want or need. Here are a few things to think about before you spend:

1. Needs vs. Wants: Needs are things we must have, like food, clothes, and school supplies. Wants are things we would like to have, like a new toy or game. When you decide to spend your money, it’s a good idea to think about whether what you’re buying is a need or a want.

2. Setting a Budget: A budget is a plan for your money. Before you go shopping, decide how much you’re willing to spend. This can help you avoid spending too much on one thing and make sure you have money for other things you might want later.

3. Comparing Prices: Sometimes, different stores sell the same item at different prices. Looking around and comparing prices can help you spend your money wisely. This means you’ll get the best deal and have more money left over!

Spending money can be fun, but it’s important to make good choices so you don’t run out of money too quickly.

Saving Money

While spending money is exciting, saving it can be even better! Saving money means putting it aside to use later. Here are some tips for learning to save:

1. Set a Goal: Think of something you want to save for, like a new toy, a game, or even something big like a bike. Having a goal makes saving more exciting because you know exactly what you’re working toward.

2. Use a Piggy Bank: A piggy bank or jar is a great place to keep your saved money. Each time you earn money, put a little into your savings. Watch it grow over time, and you’ll be amazed at how quickly your savings add up!

3. Saving a Part of Your Money: Whenever you earn money, try to save a part of it. You could start by saving half or even a quarter of your money each time. This way, you’re not spending everything at once, and your savings keep growing.

4. Bank Accounts: As you get older, you might open a savings account at a bank. Banks keep your money safe, and sometimes, they even add a little extra called “interest” to help your money grow faster.

Saving teaches patience, and it feels rewarding to reach a goal you’ve worked hard for!

Counting Money

Counting money is important because it helps you keep track of what you have, what you spend, and what you save. Here are some easy ways to start counting money:

1. Start with Coins: If you have a handful of coins, start by sorting them by type—pennies, nickels, dimes, and quarters. Count each type separately, then add them together.

2. Count Bills: Paper money, or bills, are worth different amounts, like $1, $5, or $10. Practice counting each bill and adding them up to get the total.

3. Practice Adding and Subtracting: When you spend money, subtract it from what you had. When you save, add it to your total. Practicing this math will help you keep track of your money.

4. Ask for Help: If counting gets tricky, don’t be afraid to ask for help. Counting money takes practice, but you’ll get better with time!

Counting money well helps you know exactly how much you have, making it easier to budget and plan.

Making Smart Money Choices

Now that you know how to earn, spend, save, and count money, you can start making smart choices! Money is a helpful tool, but it’s up to you to use it wisely. Here are some final tips to remember:

– Think Before You Buy: Ask yourself if you really need something or if you just want it. Waiting a few days can help you decide if it’s worth the money.

– Keep Track of Your Money: Write down what you earn, spend, and save. This way, you’ll know exactly where your money is going.

– Learn from Mistakes: If you spend too much on something and later wish you hadn’t, that’s okay! Mistakes are part of learning, and they can help you make better choices in the future.

Interactive Learning With Bubbles and Friends

Learning about money can be a fun adventure. When you know how to earn, save, spend, and count it, you’re building skills that will help you for life. So, start saving, set goals, and enjoy making smart choices with your money. Happy saving!

The Learning Experience presents Bubbles and Friends, an award-winning educational cartoon for kids that makes learning fun! Each episode allows children to explore language and literacy, critical thinking, mathematical concepts, and social-emotional wellness through the power of story and music, crafted by experts in both the fields of childhood development and kids’ entertainment. Subscribe on Youtube, Spotify, and Amazon to stay up to date on Bubbles and Friends’ latest musical adventures in Happyville!

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