SARAH'S BLOG - TALKING TO CHILDREN ABOUT MONEY

Monday 01 November 2021

Why is this important?

What developmental areas does this support?

What are your favourite activity ideas around this?

Children's perceptions of where money comes from is an interesting one. When my children were younger money coming "out of the hole in the wall" was the norm. It never occurred to them that you had to put the money in to the bank first, to get money out! With bank branches closing and everything being paid for electronically, it is even more important for children to have an understanding of how money magically appears! Notes and coinage money has virtually disappeared. We now just show our phone or our debit card.

When a child at nursery ripped a book, I explained that books were expensive and that I was very sad, his answer was "don't worry my mummy can get one from Amazon"! I tried to explain yes that's right but you have to use money to buy it with.

At a previous job Ofsted observed an activity that I carried out in the Preschool Room, we were using bowls of fruit and vegetables, shopping baskets and a till and each child was buying vegetables. Someone was the shop keeping and we had real coins to purchase our goods. We also had little debit card size pieces of paper which the children signed their name on the back, pretending to pay with plastic. The imaginative play was enjoyable for the children and handling both types of method of payment was a great learning tool. I was not given individual feedback but I was happy with the numeracy, speaking and listening, mark making, and taking turns which took place in this activity.

Talking to children about using and managing money is an essential skill that we should start young and to understand the value of things is important in our throw away society. It's so important that children learn that virtually everything we have has to be bought and that parents and carers start young in teaching their children about this essential life skill.  

Dealing with money supports so many developmental areas. It develops self-control, can I afford that toy? Do I really need it? How long do I need to save up for? It also supports patience. It supports an understanding that you cannot have everything you want in life and may have to wait or even change your wishes. It provides children with the knowledge that to have something they want, takes effort. By being given the chance to earn money provides a sense of reward that you don't get everything for nothing. As a young adult budgeting is very tough.

In town this morning I was with my husband, people watching at a well known coffee house. Next to a mobile trampoline fun fair. I overheard a parent say to their young child. "You have £2 pounds, would you like to spend it on the trampoline? it is your choice, is this how you would like to spend your money"? Brilliant! not only did the child get given the opportunity to understand that the trampoline cost money but they were also given the opportunity to choose whether or not they spent their money on this activity. We want our children to understand our British Values, which include Democracy, children making their own decisions. The child's voice and opinions matter. 

Also, “A key reason that it is important to teach children financial lessons is because you can share money values through those lessons. If you value giving to others, you can instil that value in your children by helping make it a habit for them from an early age”.

Teach Your Kids Good Money Habits – Forbes Advisor

www.forbes.com/advisor/personal-finance/how-to-teach-your-kids-good-money-habits

When we set up invitations to play, dramatic roleplay and imaginative play, we should be always thinking, what is the learning intention? In my setting, in the Toddler Room we have enjoyed using money in a Cafe and a supermarket. The area is similar to a home corner and is allowing the children to use what they know in their play. There would be no point in setting up a Travel Agents or a Post Office, if a toddler has never experienced this type of shop in their life. In the café we provide a menu with prices, a till with paper money or we just pretend to purchase items.

I also love to create buses, cars and trains with a simple column of chairs and say "tickets please", pretending to ask for the money. Why not sing songs like "Wheels on the bus ..Conductor on the bus says "tickets please. 5 currant buns in a baker's shop round and fat with a cherry on top, along comes Sarah with a penny one day, bought a currant bun and took it away". "Hot cross buns, Hot cross buns, one a penny, two a penny hot cross buns". In the past I have laminated some pennies and buns and given them out whilst singing.

I also feel that it is important to talk to children about that fact that money does not buy everything! you can still be rich in love, enjoying life without having expensive possessions. Enjoy those free things like a walk on the beach, time with loved ones and cuddles with pets! happiness comes from within.