Money and Kids in the Elementary Classroom
Teaching Primary Grade Children About Economics
Feb 1, 2009
Most state and district mathematics standards include goals concerning understanding the U.S. monetary system. Likewise social studies standards often contain economic goals concerning production and consumption, differentiating between wants and needs, and understanding the role that money plays in the life of the individual, the family, and the community.
Children in grades K-3 need hands on experiences with money in order to make sense of our monetary system. Worksheets can be a useful part of the process of learning about money, but worksheets have very real limitations, especially when it comes to understanding the basics of economics. Establishing a class bank, distributing a daily allowance, and providing an opportunity for students to spend the money they save will help meet both mathematics and social studies standards concerning money.
Introducing Money Into the Classroom
Children need to be able to handle coins, feel the difference in their sizes, and see their color and the details of their design. However, using real coins is impractical. Therefore a good supply of plastic coins, available through most school supply catalogs, is a must.
Consider purchasing a divided container – one with a secure lid – to use as the “bank.” Students can help sort and separate the coins for storage in the bank.
Give children lots of experience handling, sorting, counting and graphing the coins before introducing an allowance system.
Teaching Children How to Earn Money
A daily allowance system can help children learn about the values of coins and combinations of coins, learn to save, and learn to manage their money. There are many ways in which an allowance system can be managed. But the important thing is that it be simple, clear, and progress in small steps on a regular basis.
Teach Children How to Save Money
Before children can be given money on a regular basis, they need something to store it in. A simple box made from used greeting cards can make a handy bank that is easy to store and fits a young child’s small hands.
After the first week in which the teacher distributes the money to the students, set up a location where the students can pick up their money on the way into class. Discuss ways in which families and individuals earn, save, and store their money. Many young children assume that money comes free from the ATM machines. Discuss jobs in the economy. Talk about piggy banks and other types of containers for saving money. And discuss the bank as an institution that helps people save and grow their money.
Some children will be more responsible than others about keeping track of their classroom money. Use this as a teaching point as the need arises. Give the students a goal to save toward: the class store.
Teach Children How to Spend Money
Children need a reason to collect their money and to learn the values of the coins. A class store will set this purpose. Class stores do not have to be elaborate.
Class stores can be offered weekly, monthly, or at whatever intervals suit the teacher’s purpose and management style. Merchandise can be as simple as pencils, posters cut from picture calendars, or an inexpensive snack. Coupons for privileges such as lunch with the teacher or extra computer time are also popular for purchase by children.
Establishing a class bank, providing an allowance or an opportunity to earn money, and offering opportunities to spend their money will all contribute to meeting both mathematics and social studies/economics standards. Children will learn critical money skills in a concrete manner.
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