Money Explanation For Kids

Money explanation

In terms, money is something that people accept in exchange for goods and services and as payment of debts. Historically, many things have served as money, including cowry shells, barley, peppercorns, gold, and even cigarettes in Romania under Communist Party rule. What sets money apart is that it is durable, divisible, and transportable.

Durability refers to the ability to withstand damage and decomposition over time. Divisibility means the ability to be easily divided into smaller units and still retain value. Transportability refers to the ability to be easily carried from one place to another, replacing the need to carry around a bunch of heavy tradable items that could go bad or get lost along the way.

Unlocking the Secrets of Money: What You Need to Know

Keeping kids involved in money-related decisions will help them develop an understanding of its value. Let them see you making money choices out loud and make them aware of the price of items when you’re shopping. You can also role play and play games together to teach the principles of saving and delayed gratification. And don’t forget to set up savings goals for them in the GoHenry app so they can experience first-hand how important it is to put some aside for a rainy day!

It’s important to remember that it is not the individual items that are valuable, but their capacity to serve as a medium of exchange. It’s only when enough people agree to accept something as money that it really does have value. This is why most contemporary currencies are fiat money and not commodity money.

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