Learn Finance Skills: Introduction To Finance
Welcome to a kid’s guide to earning, saving, and spending like a money master. You’ve probably heard grown-ups say things like, “Money doesn’t grow on trees!” (Too bad, right?) But even if you can’t pluck cash from a tree, you CAN learn how to earn, save, and spend money like a champ! Let’s dive into the world of finance — where coins jingle, cards beep, and piggy banks rule.
Earning Money: Where It All Begins
Money doesn’t just appear (unless you’re a magician). We earn it by doing jobs! Even kids can find clever ways to earn a few coins. Helping with chores around your home like washing the car or weeding the garden. Running a lemonade stand or bake sale Feeding pets, walking dogs or watering plants for neighbors Selling your stuff, either in person with a garage sale or you can even sell things online. If you are a crafty kid you can even sell your creations like art, jewellery or t-shirts at markets! Earning money feels AWESOME because it means you worked for it! Every coin is like a little “well done” trophy.
Spend or Save? That Is the Question…
You’ve got money. Now what? Time to make some BIG decisions.
Saving money means not spending it all at once. You put some money away for later — for something BIGGER or BETTER. You can save your money in a piggy bank or use a savings jar. You could keep track of your money in a notebook as well. Or even open a bank account (with an adult’s help!) to track your money going in and out. Want to be a Super Saver? Here’s how: Set a goal: If you want to save up for a big Lego set or an expensive brand of sneakers, that is a great goal. Break it down: How much does it cost? How much will you save each week? Stay strong: Don’t spend it all just because you saw glitter slime at the shop. Remember your goal! Saving is like leveling up in a game — it takes time, but the prize is worth it! You could try the 50/30/20 rule. Next time you earn money, divide it like this: 50% for needs, 30% for wants and 20% for savings (or donating).
Spending is when you use your money to buy stuff — toys, snacks, games, or that sparkly thing you absolutely love. BUT WAIT! Before you spend, ask yourself: Need vs Want: The Ultimate Showdown! Money doesn’t last forever (sadly). So it’s important to know the difference between ‘must haves’ and ‘nice-to-haves’. Needs: Things you must have to live, Food, Clothes, A place to live. Wants: Things you’d like to have, A toy dinosaur that roars, Ice cream with extra sprinkles, A rocket-powered scooter (we wish!)
When it comes to money you should always take care of your needs before you spend on wants. Spending money can be fun — but if you spend it all at once on shiny things and fizzy drinks, you might not have any left when you really want something BIG. Here’s how to be a super-smart spender: Make a list before you buy, what are the things you really want? If you know what you want, you’re less likely to waste your money on random glow-in-the-dark erasers. Ask yourself “Do I really need this?” Be honest! Wait before you buy. If you really want something, wait a few days. Still want it? Then maybe it’s worth it! If not? You just saved your cash. Think about value, not just price Sometimes the cheapest thing breaks after a week, while something a little more expensive lasts way longer. Do some comparison shopping! Similar items can have different prices, or different prices at different shops, or better yet it could be on sale for a discounted price somewhere else! Stick to your budget. Set a limit for how much you’ll spend. If your budget is $5 and the toy costs $10 — it’s a no-go, bro. Don’t spend just because your friends are. If someone else buys the latest cute squishy toy, that doesn’t mean you have to. You do YOU — and your money!
What’s Electronic Money? (And Why Doesn’t It Jingle?)
Not all money lives in your wallet anymore. A lot of it lives in the cloud — no, not the fluffy one in the sky — the digital kind! In an online bank account. Every time you tap a bank card or click ‘buy it now’ at an online shop you are using your digital money. Online banking might sound super grown-up, but it’s actually a great way to keep an eye on your money! (With a parent’s help, of course.) Here’s how to use it smartly: Check your balance. This tells you how much money is in your account. It’s like peeking into your piggy bank… but on a screen! Track your purchases. You can see a list of what you’ve spent money on. Bought a book? It’ll show the shop name and how much it cost. Set up savings goals. Some apps let you move money into a “savings pot” with a name like “New Bike Fund” or “Birthday Money”. Watching it grow is SO satisfying. Be safe online. Always use strong passwords (not “1234” or “mycat”). NEVER share your banking details with anyone except a trusted adult. Don’t click weird links — if it looks fishy, it probably is. Ask your parent or guardian to show you how online banking works — it’s like a superpower for managing money!
Now go forth, mighty money manager! Whether you’re running a bake sale, saving for something special, opening your first bank account, or learning how to shop smart — you’ve got this!