ClassX Video Lessons Youtube Channel Teaching Without Frills Economics for Kids: Saving and Spending
Let’s talk about money! People earn money by working. Some people sell things, like toys or food, while others do jobs, like teaching or fixing cars. We use money to buy things we need, like food and clothes, and things we want, like toys and games. But we can’t have everything we want, right?
Scarcity is a big word that means we want more things than we can have. Everyone experiences scarcity because we have lots of things we want, but not enough money to buy them all. So, we have to make choices. Usually, we buy what we need before we buy what we want. For example, if you need lunch but want a cupcake, it’s smart to buy lunch first and see if you have money left for the cupcake.
Sometimes, we have to decide if we want to spend our money now or save it for later. Every choice has good and bad sides, or pros and cons. If you spend your money, you can get something right away, but it might be small, and you might not have money left for other things.
If you save your money, you might have to wait, which can be tough! But saving means you can buy something bigger or more special later. Imagine you have five dollars. Would you spend it on an ice cream sundae now, or save it for a few weeks to buy a cool new toy? There’s no right or wrong answer. It’s all about thinking about what you want more and making a smart choice.
There are more fun videos in this series to help you learn about economics! If you’re a teacher, you can find Teaching Without Frills on social media. Thanks for learning with us!
Money Jar Activity: Create three jars labeled “Spend,” “Save,” and “Share.” Each time you receive money, decide how much to put in each jar. At the end of the week, discuss with a family member or friend why you chose to put certain amounts in each jar. What did you learn about your spending and saving habits?
Needs vs. Wants Collage: Collect old magazines or print pictures from the internet. Cut out images of things you need (like food and clothes) and things you want (like toys and games). Create a collage by gluing the pictures onto a piece of paper. Share your collage with the class and explain why you categorized each item as a need or a want.
Scarcity Scavenger Hunt: Go on a scavenger hunt around your home or classroom to find examples of scarcity. Look for items that are limited in quantity, like a favorite snack or a special toy. Discuss with a partner how you decide who gets to use these items and what choices you make when they are scarce.
**Saving and Spending**
*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. People use their money to buy the things that they need and want. But you can’t have everything you want, right?
Scarcity means that you want more than you can have. We all experience scarcity because we can want an unlimited number of things, but we don’t have unlimited money or resources, so we have to make choices. We usually buy things we need before we buy what we want. For example, I need to buy a healthy lunch, but I really want a cupcake. I should probably buy my lunch first and then see if I have enough money left over for dessert.
Sometimes we have to choose between spending our money now or saving it for later. All of the choices that we make about spending and saving have benefits and costs, or pros and cons. When you spend your money, you can buy something right away, but it might have to be something small that you can afford. And then you might not have much money left for other things.
When you save your money, you may have to wait longer, which can be hard sometimes! But when you do, you can afford something more expensive. What would you do if you had five dollars? Would you spend it right away on an ice cream sundae, or would you save it for a few weeks until you could afford a cool new toy? There’s no right answer. We each just have to think about the benefits and costs of the choices that we make to spend or save.
Check out the other videos in this series to learn more about economics! And if you’re a teacher, you can find Teaching Without Frills on social media platforms. Thanks for watching!
