Strangers

 Right now, your child’s relationship with money is very limited. They might understand that money is used to buy things but don’t grasp how it’s earned or its value. This page will guide you in teaching them the basics of money management. 

• Understanding: Your child knows money is important but doesn’t understand its broader concepts like earning, saving, or spending.
• Interaction: They have minimal interaction with money, and their knowledge is very basic.

Budgeting: Begin to understand that money is finite and needs to be managed.

• Task: Teach your child the concept of budgeting by explaining that you can only spend what you have. Use simple examples like giving them a small amount of money and letting them decide how to spend it.

Saving: Recognize the importance of saving money for later use, even if it’s just small amounts from gifts or allowances. 

• Task: Start a savings jar or piggy bank. Encourage your child to put a portion of their allowance or gift money into the jar each week. 

Debt:  Learn the basic concept that borrowing money must be repaid, often with extra (interest). 

• Task:    Explain the idea of borrowing by using a simple story or role-playing game where they borrow and then repay a small amount of money. 

Credit: Understand the basic idea that people can borrow money through things like credit cards, but it’s not ‘free money.’ 

• Task: Introduce the concept of credit by explaining that when you borrow money, you have to pay it back, usually with a little extra. Use everyday examples like borrowing a toy and then returning it with a small treat. 

Money Stories: Read books or watch videos about money basics.

• Task: Choose age-appropriate books or short videos that explain money concepts in a fun and simple way. 

Play Store: Set up a pretend store at home where your child can use play money to buy and sell items.

• Task: Use this activity to teach them about transactions, making choices, and understanding that once the money is spent, it’s gone.