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How to explain money to pre-schoolers

How to explain money to pre-schoolers

Explaining what money is, what it’s used for and where it comes from are important first steps to helping children learn the value of money.

Here are five ways you can introduce basic money concepts to pre-schoolers.

1. What money is

This is the foundation every child needs. Teach them what coins and notes look like, what they’re called, that they’re different and why. Use actual coins and notes in games you play together so your child starts recognising them – it’s a good intro to their value too.

2. You use money to buy things 

This becomes more meaningful when you give your child the money to hand over to the check-out assistant during a shopping trip. In our increasingly cashless society, it’s really important for children to ‘see’ money being exchanged. It helps them understand they don’t get something for nothing.

3. You often have to wait before you buy something

Patience and waiting - two things most young children struggle with. When it comes to money though, it’s important that children begin to realise they can’t always buy what they want, when they want. Sometimes they have to save, and that takes time.

4. You get money by working

The first step in children understanding the value of money is that it doesn’t simply appear. Explaining how you earn money, by going out to work for example, is a great starting point.

5. Money should be kept somewhere safe

Set up your child up with a bank account and talk about money needing to be kept secure.

By understanding these five points, your child will be better prespared to understand concepts like the value of money, when they reach primary school.

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice.