Once you are done creating your new currency, you can start to explain the concept of money and how it is spent in the household by using your pretend currency as a physical substitute. Use the pile of notes to represent the money that mom, and dad earn to ensure that the family has everything it needs. Then list the family’s monthly expenses – this can range from groceries, entertainment, etc., - and draw from the pile for each. This shows how the family spends money monthly. You can explain how the remaining money from the pile goes to savings such as the family holiday or his/her future university fees. Despite what many parents may think, children between these ages understand money because they are exposed to it every day either at home or when they are with friends at school. Reciting the money poem below with your child is a fun way for them to learn too. It is also a familiar method of learning for children in this age group. They learn through nursery rhymes in grade R and by doing things that make their imagination come alive. Parents can recite with their kids as many times as they wish per week for a few weeks and ask basic questions that will help them gauge how well their children are grasping the concept.
BY KATHRYN MAIN www.moneysavvykids.co.za