ClassX Video Lessons Youtube Channel Teaching Without Frills Economics for Kids: Producers and Consumers
Let’s start by understanding how people earn money. Some people make or grow things to sell, and these are called goods. Others do jobs for people, and these are called services.
Producers are people who sell goods and services. Imagine a baker who makes yummy cookies, cupcakes, bread, and pies. When she sells these treats, she is a producer because she earns money from selling her baked goods.
Consumers are people who buy goods and services. For example, when a family goes to a bakery to buy cookies, they are consumers. They use their money to buy the cookies they want to enjoy.
Many people are both producers and consumers. The baker, after selling her cookies, might use the money she earned to buy things she needs, like ingredients or a new book. This makes her a consumer too!
Did you know that kids can be producers and consumers too? If you’ve ever had a yard sale or sold toys you no longer play with, you were a producer. And if you used that money to buy a new toy, you were a consumer!
Kids can earn money by doing different things. You might walk a neighbor’s dog or sell lemonade on a sunny day. Have you ever done something to earn money? That makes you a producer!
When kids spend the money they earn, they become consumers. Have you ever bought something with your own money? That’s when you were a consumer!
There are many fun ways to learn about spending and saving money. Keep exploring to find out more!
And if you’re a teacher, you can find Teaching Without Frills on social media platforms. Thanks for reading!
Producer and Consumer Role Play: Gather some play money and set up a small market in your classroom or at home. Assign roles to each child: some will be producers selling goods like pretend fruits, vegetables, or toys, and others will be consumers with play money to spend. Let the children switch roles after a while. Discuss how it felt to be a producer and a consumer. What did they enjoy about each role?
Create a Mini Business: Encourage the children to think of a simple product or service they can create or offer, like drawing pictures or making friendship bracelets. Have them “sell” their creations to family members or classmates using play money. Ask them to think about what materials they need and how they will “price” their goods. Afterward, discuss what they learned about being a producer.
Observation Walk: Take the children on a short walk around the school or neighborhood. Ask them to observe and identify examples of producers and consumers in action. They might see a delivery truck (producer) or people shopping at a store (consumers). After the walk, have a discussion about what they observed. How did they know who was a producer and who was a consumer?
**Producers and Consumers: Economics for Kids**
by Teaching Without Frills
First, let’s review. Many people earn money by working. Some people sell goods, and others perform services to earn money. Goods are things people make or grow to sell, and services are jobs people do for others.
So what are producers? Producers are people who sell goods and services. For example, a baker is a producer. She bakes cookies, cupcakes, bread, and pies, and then she sells them to earn money.
What are consumers? Consumers are people who buy goods and services. For instance, a family might visit a bakery to buy some cookies. They’ll pay for the cookies with money. They are consumers.
Many people are both producers and consumers. The baker might take the money she earned from selling cookies and go to the store to buy the things she wants and needs.
Even kids can be producers and consumers! Have you ever had a yard sale or sold any of your old toys that you don’t use anymore? Then you were a producer. Maybe you took that money to get a new toy that you wanted. That would make you a consumer.
Kids can be producers to earn money in lots of ways. You might walk your neighbor’s dog or sell lemonade on a hot day. How have you been a producer?
And kids can be consumers when they spend the money they earn. When have you been a consumer?
Check out the other videos in this series to learn more about spending and saving money.
And if you’re a teacher, you can find Teaching Without Frills on social media platforms. Thanks for watching!
