What is money?
Money is what people use to buy things. Money can be:
- coins: small, round metal pieces
- bills: paper or plastic money
- cards: debit and credit cards
- digital money: paying with a phone or online
Long ago, before money, people traded: "I’ll give you three eggs for your loaf of bread." Money makes buying things much easier!
Where does money come from?
Grown-ups usually earn money by working at a job. Kids might earn money by:
- doing extra chores
- selling lemonade or crafts
- getting an allowance
- receiving money as a gift
Price
The price is how much something costs. Prices are shown on tags, labels and signs in stores.
- A pencil might cost $1.
- A book might cost $10.
- A bike might cost $150.
Before you buy something, check the price. Do you have enough money?
Three things to do with money
1. Spend
To spend means to use money to buy something. People spend money on needs, like food and clothes, and wants, like toys and treats.
2. Save
To save means to keep money to use later. When you save, your money adds up over time, so you can buy something bigger.
3. Share
To share means to give some money to help others, like donating to a food bank or an animal shelter.
Some kids use three jars: Spend, Save and Share.
Saving for a goal
A goal is something you plan and work toward. Saving money for a goal takes patience!
Example: Leo wants a toy that costs $20. He gets $5 each week for his chores.
| Week | Money saved |
|---|---|
| 1 | $5 |
| 2 | $10 |
| 3 | $15 |
| 4 | $20 |
After four weeks, Leo has enough! Waiting made the toy feel extra special.
Where to save money
- a piggy bank or jar at home
- a bank account
A bank keeps money safe. Some bank accounts even pay you a little extra money, called interest, for saving there!
Smart money choices
Before you spend, ask yourself:
- Is it a need or a want?
- Do I have enough money?
- Is it worth the price?
- Would I rather save for something else?
Sometimes it’s better to wait. If you still want it next week, it may be a good choice.
Counting money
Learning to count coins and bills helps you know how much money you have. Practise counting with real or play money.
Try it yourself
- Make three jars: Spend, Save and Share. Decorate them!
- Choose a goal and make a chart to track your saving.
- Play store with play money. Check prices before you buy.
- Look at prices in a flyer. What could you buy with $10?
- Talk with a grown-up about how your family saves for big things.
Tip for families
Give your child small chances to make money choices, like choosing between two treats with a set amount. Talk about saving for something special.
Quick recap
- Money is used to buy things; it can be coins, bills, cards or digital.
- People earn money by working.
- We can spend, save or share money.
- Saving helps us reach goals.
- Smart choices mean thinking before we spend.