Money Explained to Kids


Money is a Geld Uitleg that allows us to trade goods and services without the hassle of bartering. It can be in the form of coins, paper notes or digital money (money accounted for and transferred online via debit cards). Money makes the world go round and is the backbone of economic growth. It is important for children to understand where money comes from and what it is really worth.

Explain to kids that they receive a certain amount of money each time they get paid and that this money is used for things like food, clothing and housing. Teach them to prioritise their needs over their wants and help them save some of their money so that they can afford the things they really want in life down the track.

If kids are old enough to have a pocket full of change, have them sort their coins by shape, colour and size and count together. Alternatively, when out shopping, show them how to use their own money to pay for items and get the receipt.

“Follow the Money: A Journey into Its Origins and Significance

Almost 2,500 years ago, Aristotle defined money as β€œan abstract social power, legally enforced for the benefit of the People.” Today, money is still very much the same. It must be exchangeable, convenient to carry and recognised as legitimate by all, physically long-lasting and have a stable value. It must also be a store of value and a medium of exchange – allowing people to purchase and sell their goods and services quickly, and for other individuals to borrow and repay their loans.

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