Let’s Talk Money: Teaching Children About the Economy Using Public Media :Let’s Talk Money: Teaching Children About the Economy Using Public Media Family Resources For Young Children (3-6 year olds) Funded in part by a grant from the Corporation for Public Broadcasting


Learning How Finances Work :Learning How Finances Work At age 3, children begin to understand the idea that: objects have different values different grown-ups have different jobs


Learning How Finances Work :Learning How Finances Work At age 4, children begin to understand the idea that: Different coins have different values Money can be exchanged for objects


Learning How Finances Work :Learning How Finances Work At age 5, children begin to understand: The idea of saving The concept that people work to earn money


10 Essential Building Blocks of Financial EducationPre-School Style from Sesame Workshop Talking Cents Initiative :10 Essential Building Blocks of Financial EducationPre-School Style from Sesame Workshop Talking Cents Initiative


1. The Basics of Value :1. The Basics of Value What is an object worth? The “value” of an item depends on many things and different items have different values to different people Pre-schoolers learn the basis of value by trading and simple swaps


2. Business Matters :2. Business Matters Young children love to pretend, especially when they pretend to be adults! Kids observe business “tools” such as signs, price tags, and cash registers and then pretend to make and use these items Playing store or restaurant lets kids practice running a make-believe business


3. Getting Organized :3. Getting Organized Preschoolers enjoy matching and sorting objects these are brain building activities that also help develop organizing skills Sorting objects into, such as coins, helps build organization skills


4. It’s Worth It! :4. It’s Worth It! To a preschooler, bigger = better Learning the value of coins takes some practice since our $$ size does not necessarily correlate to value. Start simple, for example: 1 crayon = 1 penny, 5 crayons = 5 pennies, then 5 crayons = 1 nickel


5. A Paycheck? What’s That? :5. A Paycheck? What’s That? To children, objects that adults buy just seem to “appear” in the same way that adults have a mysterious way of making things happen Introduce the concept that work = $$ for adults and that $$ is needed to pay bills and purchase things


6. Waiting Pays Off :6. Waiting Pays Off Developmentally, the concept of waiting is difficult for very young children Demonstrate and verbalize waiting in everyday life, such as “We’ll go to the park after we take a nap.” Use a piggy bank to introduce the concept of saving and waiting to spend


7. Shopping & Budgeting :7. Shopping & Budgeting Use everyday trips, such as a trip to the grocery store, to: make a list set price limits for overall spending and/or specific objects think aloud, like “That ice cream looks good but we have treats at home; I don’t think we need ice cream right now.”


8. Try, Try Again :8. Try, Try Again Setting goals, dealing with setbacks and working as a team are all learned skills that require persistence Help children learn these skills by focusing on efforts as much as accomplishments. Encourage kids to try something new and to keep trying!


9. Money Around the World :9. Money Around the World Introduce the concept that just as people from different places speak different languages, they also have different kinds of money. Show children that different items are made in different places


10. Giving to Others :10. Giving to Others Kids are naturally compassionate and generous (once they have cleared the “MINE!” stage!) Children don’t have to have $$ to be generous- donate time by doing things for others.


Children’s Books about $$$ :Children’s Books about $$$ Alexander, Who Used to be Rich Last Sunday by Judith Viorst A Dollar for a Penny by Julie Glass Bunny Money by Rosemary Wells The Coin Counting Book by Rozanne Lanczak Williams Follow the Money! By Loreen Leedy


Money Activities for Families :Money Activities for Families Use shopping trips to explain the basics of: paying for items counting change and cash buying with credit cards or debit cards using ATM machines Create play money and coins together (draw, cutout, and name) Play store: Make a list, price items, buy items, check out.


Budgeting Activities for Families :Budgeting Activities for Families -Plan budgeting for monthly expenses, make lists (school lunches, clothing, and treats) -Make a wish list of a big item (trip) and a small item (rent a DVD) Discuss how to save for it and how long it might take. (Visual saving with change.) -Set aside money for saving and charity -Track how you spend time and let children suggest how to donate time (or money) to a community cause or charity


Encourage Interest in Business :Encourage Interest in Business -Play business games and track profits and losses -Run a small business (lemonade stand) or special extra jobs at home such as parent helper or clean-up specialist -Set aside money for saving -Open a bank or credit union account to save money -Encourage interest and questions from children about businesses you visit or careers of people you know


Resources for more information :Resources for more information Sesame Workshop: Talking Cents: Download Sesame Magazine, Poster and Activities http://www.sesameworkshop.org/initiatives/literacy/talkingcents PBS Parents: Raising Smart Shoppers http://www.pbs.org/parents/special/article-finance-smartshoppers.html PBS Parents: Making Sense of Cents: Talking to Your Kids About the Economy http://www.pbs.org/parents/special/article-finance-makingsense.html