How to Teach Money Concepts
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We don’t need a curriculum for everything. Some skills are learned naturally, organically. In fact, sometimes the learning happens amid our days and we miss it.
Some concepts are best taught and retained from experience with real-life objects.
Money is one of those topics.
The best way to understand money is to use it—take if off the page, get your hands on it, and practice the skills.
For children, preschool through elementary, learning money concepts will look like
Coin recognition - My husband’s spare change hangs out on the counter or in the console of the car. Most of our children have found it, eventually, inquiring, “May I have this?” There’s interest and engagement—a perfect combination for retention. A simple explanation—”This is a penny. This is a dime. This is a nickel. This is a quarter.”— while placing the coin in the child’s hand will effectively teach coin identification. Next time the coins are laying around, review the concept. If the child has a piggy bank or other collection container, empty the contents, sort the coins, and review the coin names. Coin recognition can be that simple, and it will stick.
Coin value - Maybe your child already knows the coin names and is ready to associate values— “A penny is one cent. This is a dime, it’s worth ten pennies. It’s ten cents.” This concept will take some time and practice to master, but again, with real coins and a piggy bank, there’s an undercurrent of interest.
Coin addition - Once the child recognizes the coin and it’s value, there’s almost an automatic need to be able to “find out home much I have”. Here begins the understanding of adding money—combining two groups. To move with the interest, place two or three coins in your learner’s hand. Add one from your hand and add the total of the two coins. Write the corresponding addition equation on a piece of paper so the child can associate the actual coins, their value, and the symbols of the equation. Start with pennies for the youngest learners and move to greater values, hence addition of two digits.
Calculated change - Once the concept of coin addition has been mastered, it’s time to tackle the concept of change—what will be given back after a purchase. The difference. We found this concept was easy to learn while playing store or working with oral problems. For example, “I have three quarters and want to buy this pencil for $0.65. What change will I receive back from the cashier?” Of course, the youngest learners will be best served using pennies and then moving to larger amounts.
Saving and Spending Real-Life Practice
Aside from playing store and counting money in a piggy bank, we give a few coins (maybe two dimes, a quarter, four nickels) every once and awhile, random amounts--could be a quarter or two dimes, whatever. We tell the child the money is his or hers and they can do with it what they choose. They quickly figure out if they save it, it adds up. The process naturally brings questions, everything from savings to buying houses to investing. Real money is a motivator. We do this for an entire school year because the lessons are so valuable. They are real world lessons of being faithful with little and being given much. The process also gives us the ability to see which of your children have a tendency to spend, give and save. It’s a window into their minds and hearts. They’ve all been different.
Playing Games
Games have offered opportunity to learn and practice money skills with larger amounts. Among the favorites are
Allowance
Monopoly
Monopoly Jr.
Life
This is just a sampling of ways real money aids in cementing important math skills and financial concepts, beginning with the youngest learners.
Those coins on your counter or in your console? Wonder and learning await. In fact, learning is likely happening and it’s waiting to be fostered.
