Welcome to Human Asia’s Kidpreneurs Money Series – Lesson 1.
In this program, you will learn how to teach your kids the basics of finance. Finance is the basic building block in entrepreneurship, but unfortunately finance is not being taught enough (or at all) at school.
These lessons, spread over many articles on this website, are meant to close that knowledge gap for your kids so that they can enter their careers later in life with a solid foundation of this very important knowledge.
These lessons can either be read by the kids themselves, or you can deliver it to them in the form of instructional teaching – whichever works best for them!
However, make sure that you read from lesson to lesson without skipping as one lesson builds up to the next.
Without further ado, let’s begin Lesson 1 -Teach Your Kids Money!
This lesson will introduce you to the basics of money and money management to prepare your journey in becoming a kidpreneur.
Kids, you will have a great time learning more about money!
Why money is important
Money is important to learn because money is valuable and useful.
It is a very important part of our everyday lives. Money enables us to buy goods like video games, clothes, books, and smartphones.
Many people enjoy shopping. With money, you can buy many of the things you want.
Money also allows you to obtain services. Your parents pay a mechanic to repair the car, a gardener to mow the lawn, a plumber to fix a water leak, and a doctor to check on you when you get sick.
You may not know this, but the electricity, the cable TV, and the Internet services you use at home are available to you because of money.
Why saving money is important
When you receive money, you have achoice to either spend it or save all or some of it for the future.
There is nothing wrong with spending money, especially for buying goods and services you truly need.
However, saving money is also very important because it helps you prepare for the expensive items you need to purchase in the future such as a college education, a car, and a house.
More importantly, saving money allows you to better handle unexpected expenses and emergencies that can happen in the future.
Growing your money
What is exciting about money is that it can grow when it is put in the right place.
This is called investing.
Any person, young or old, can invest savings and earn more money. The sooner you start to invest your money, the bigger your savings can grow over time.
Helping others with money
Here is the best part. Besides spending, saving, and investing, did you know that money empowers a person to help a community?
With money, you can support charities and make a difference in someone’s life. It surely feels great when you are able to help someone and contribute to a worthy cause.
You need to work for and earn money
Because there are so many wonderful things you can do with money, nearly everyone dreams of having lots of money.
But money is not easy to come by. Have you heard of the expression “Money does not grow on trees”? This means money is not something you can easily get like picking an apple from a tree. People need to work in order to earn money.
Read also : How to Create a Profitable Value Proposition
How do your parents earn their money?
Are your parents working? Most parents work for a living. Grownups normally work eight hours a day, five days a week. Some work even longer than that.
Making money takes a lot of time, energy, and skill. But the rewards of having a job can be far more than just making money.
Helping to create something, giving back to the community, handling an interesting service—all of these and more are good things that come from having a job.
Don’t do this with your money
But there are also some not-so-good realities you need to face when dealing with money. When someone buys more than what he or she makes, that person could end up with no money in the future.
Sometimes, people can also lose money when they put their savings into the wrong investments. When you don’t properly manage and protect your money, you can lose it. You get stressed out when you lose that hard earned money—especially when you cannot buy the things you need.
As a Kidpreneur, you need to learn a lot about money
Learning how to make money and how to take care of your earnings is a responsibility that you cannot take for granted.
This is where the knowledge of finance becomes very useful. Finance, in a nutshell, is the process of managing money.
Learning finance will help you make good choices when it is time for you to decide on how you will earn and make money.
More importantly, understanding how money works allows you to make smarter decisions as you spend, save, and invest your money.
This is a great day to learn finance! Follow the rest of this series and you will be on your way to becoming an amazing kidpreneur!
Check out the ultimate startup business game for all ages!
Today’s important words
Money : something that can be used to exchange for goods and services
Goods : real things that can be seen and touched.
Services : work that is provided by another person.
Spending: using money for payments or purchases
Save : setting aside your money for future use
Investing : putting money somewhere it can grow.
Savings : money set aside for future use.
Charities : organizations that provide help for those in need.
Investments : something that you can purchase with the hope that it will provide income or will be more valuable in the future.
Finance : the way money is obtained, managed, or used.
Next read : Kidpreneurs Money Lesson 2: Where Did Money Come From?
Want to see the whole Money Lesson Series? Click below.