Money is any object that is commonly accepted in exchange for goods, services or the repayment of debts. It also serves as a store of value and a unit of account.
Kids need to Gelduitleg where their money comes from and how they earn it. They also need to understand the role money plays in their lives and how they should manage it wisely. This will help them become financially independent and make smarter choices.
The way you talk to your kids about money will have a big impact on their understanding of it. This is why it’s important to find everyday moments to talk about money.
Money 101: Understanding the Basics
A good place to start is by explaining that you work hard for the money you spend on things. You can use this as a chance to teach your kids about the difference between needs and wants (must-haves and nice-to-haves).
Next, explain that money is a medium of exchange. Explain how it allows us to buy goods and services without having to barter. This is what makes it so valuable! It means that you can go to the shops and get a teddy bear instead of trading your home-grown tomatoes for a haircut.
Next, explain that money is a store of value. Explain that to be considered a store of value, it has to retain its purchasing power over time. For example, a ten dollar bill will still be worth ten dollars tomorrow even if it’s no longer being used to buy goods and services. This is why it’s so important to keep it safe and secure!