Did you ever try asking kids where do they think MONEY comes from?
I asked my two kids separately and surprisingly they both gave the same answer…”Money comes from the BANK!” Well, other kids may answer it is from the ATM or from daddy or mommy’s purse.
To be able to help our kids gain financial literacy, they need to understand about MONEY and where it is from before it reaches the ATM or the bank.
It all begins at the place called mint. A mint is a primary producer of a country’s coin currency. Along with production, the mint is also responsible for the distribution of the currency.
Read more: Mint http://www.investopedia.com/terms/m/mint.asp#ixzz4mUby144j
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From the mint, money is printed out to be used. It goes through a cycle of earning, spending, saving and donating (tithing). Parents earn the money by working or doing business. Then the family now spends it to get the things they need. Some money may go to savings account in the bank while some may go to investment. And for families who tithe, a portion of it goes to church or donations.
It is also important that children know the VALUE of money.
Here are some activities you can do with the kids to help them learn more:
- Wallet Math
- Ask the kids to solve math problems using real or paper money.
- Example: Mariel goes to the grocery. She finds her favorite chocolate milk on sale. The original price is Php 79.00. There is a tag that says 20% off. How much will she pay for a carton of chocolate milk?
- Name that Price Game
- Prepare pictures of things the children are familiar with. Search for the prices of these items.
- Show the kids the picture and let them guess how much the item is. You will be surprised at how much they think things cost.
- Cha-ching Financial Education Program
- Cha-Ching Money Smart Kids is a designed to help 7 to 12 year olds understand money concepts: earn, save, spend and donate.
Prudence Foundation developed the money-smart kids programme in response to a growing interest in – and need for – financial literacy programmes focused on children:
A major research initiative, Financial Literacy in Children, undertaken by Prudential across Asia in 2011 showed that only 13 per cent of parents believe their children possess good money management skills – though almost all parents (95 per cent) think it is important to learn them. These findings led Prudential to launch of Cha-Ching featuring a series of three-minute music videos in September 2011.
Where does your money come from?