Understanding the Concept of Money

[betterthanever]

How old was your DC when they understood money? how much they know about what aspects of money will obviously increase as they get older, but how much did they know about what aspects when?
I think my DS knows quite a bit for an 8 year old and he understands that there are different currencies too but just wondered what others have experience of. Does pocket money help with this do you think and how much is it discussed with you?.. sorry loads of questions.. I started wondering following something that happened in the shop today.

Mine has since she was about 6. She's 8 now and knows about budgeting and about how money works in the larger sense.

She's actually interested in it though and so I've had to answer a lot of questions...I have also explained how advertising works...and marketing, which is related to understanding money.

I did it in a way which she would grasp...so when she admires some toy on the TV, I will point out how the toy is placed in a very attractive setting...perhaps with other toys of a similar nature...and remind her that the toy she will receive for her £20.00 or whatever, will only be ONE toy and it won't be in that setting. She was intrigued and wonders why it's allowed.

Understanding sales techniques helps her to make good choices when it comes to her pocket money. She gets £5.00 per week but that is to pay for comics she might want or little things like Moshi toys...she saves it often.

As a freelancer I also discuss my money with her and explain how I charge clients...she likes that and it gives her a better understanding of why I sometimes say no to things.

Thanks for sharing that neo I have just started talking about marketing/sales techniques when DS sees toys he wants esp. on TV but was a bit unsure what to say, I am going to pinch some of your ideas if you don't mind

Some good ideas neo.

When you are watching adverts, get them to think also about how they use music, excited children to get you buy things. I always talk about how you want to have a birthday party but one of your friends also has a party on the same day. How do you get the people in your class to come to your birthday and not the other persons? Eg you tell them everything that you will do, you talk excitedly etc. then link it back to adverts.

Have you asked your DS "where does money come from?" That's always an interesting question.

It might also be worth getting to think about dilemmas relating to his life. For example, if you give him pocket money and he really wants something for himself but a grandparents's/friend's/sibling's birthday is coming up and he needs to buy something for them (only a little something!), ask him what he is going to do and how is he going to manage his money?

Good point about where money comes from so I try and talk in terms of.. to buy X I have to work x many days and to buy y... z many days etc. He has a good sense of what would cost more than what when the difference is big i.e. a family car costs more than a magazine but he wouldn't know just how much a car costs and how much it can vary but has a better idea for magazines say and small toys. We used to talk about what were birthday' or Christmas' presents rather than say an everyday garden toy he could use pocket money for.
I like the idea of the getting him to manage money when he has to buy something for someone else, thank you for that. He did it a little bit on holiday once, you have just reminded me - he was buying a present for his cousins and wanted something for himself before he had bought them theirs and said he needed to leave some for the presents for his cousins. Thanks is a really interesting broad subject.

Today, my DS (5) and I were talking about what to do if he got lost in a street. He knows about safer strangers but I was talking about safer buildings. Anyway, he came up with supermarket, police station and cafe. (We have talked about it before) and I said bank. He asked what a bank was. Is it like a river bank? So, I tried to explain as best I could. He then wanted to know why didn't he have money in the bank in a bank account?

A lot of children think that money comes from the supermarket (cash back).

DD2 doesn't grasp money well yet. She's 5.11. I had to get a £1 coin changed into silver coins for her because she was crying that she didn't have much money. She couldn't accept that the £1 coin represented more money than 5 or 6 10p coins, for example.

lougle your dd2 is 5years old? Nearly 6? So in year one? In that case I would not worry too much. It's quite a big concept for young children to understand that sort of thing.

I would start off by looking at coins and what it says on them. Do lots of "shopping" at home. Make it fun for her and make a little shop at home together for her to buy different things at 1p, 2p,5p, 10p, 20p, 50p £1, £2, £5 etc.

When she is confident recognising the coins then show her that 2p is the same amount as two 1p. And we say 5p coin because its the same as 5 of these. And 10 pence because its the same as ten 1 pennies. During shopping play, encourage her to pay for things in different ways. Eg 2p toy can be paid for in 1p+1p or 2p. Go as high as she can count accurately in ones.

Build up her knowledge and confidence this way.

Thanks SoTiredAgain, I'm not worried It just showed me that no matter how much we talk about money, once it's in her hand, she'd rather have lots of low value coins than the amazing gold one

I think because I am a single Mum my DS gets a lot of exposure to money that he may not if he were at home for example whilst I nipped out to get money out, go shopping as he is with me all the time- he knows what a bank is but you have reminded me of when he didn't, I used the love the thought of just being able to get money out and out again without worrying how it got in that wall
lougle I miss the days when DS wanted quantity over quality - unfortunately he knows a £2 coin when he sees one now - enjoy it while it lasts especially in the fun fair penny arcades, the £1 of 10ps doesn't last long compared to the £1 of 2p's. I found DS suddenly got coins, I think they had done it school when he was 5 although he is one of the young ones. We had gone through them at home too but not a lot- he was naturally interested, which I think helps.
I still need to look at budgeting.

Maybe you can help me to budget better

BTW what happened at the shops that got you thinking about children and money?

hahahaha so and myself
he challenged (in a nice way) the cashier who was trying to over charge him by 2p... long story but I was very proud of him.