Teaching Money Concepts - A Newsletter for Parents of Fifth Grade Children

Children are learning about money all the time. They learn from what they see, hear, and experience. They learn from both successes and mistakes.

In today's world, money is necessary for everyday business. As children grow up, how they live and feel about life will be influenced by the way they use money.

Getting Started

Children realize money can get them "stuff." The experience of saving, buying, and paying for items helps them learn the value of money. It also gives you, the parent, a chance to discuss your personal and family values about money with your child.

Teaching Money Concepts

Children in the fifth grade will continue to learn money management skills by doing. Provide as many experiences as you can and include your child in family financial discussions and decisions appropriate for his or her age.

Here are some activities you might try with your child. They are fun but will also help you teach your child important money concepts.

• Include your child in a family meeting to talk about money plans and goals.
• Take your child on shopping trips to help teach comparison shopping. The child can help compare prices, quality, warranties, etc.
• Encourage extra jobs like babysitting, yard work, pet care, and errand running for your child to make money.
• Arrange for your child to use his or her own money to buy wanted (vs. needed) items like computer games or clothes.
• Encourage your child to save for things he or she can't afford now. This could include both short-term and long-term savings goals.

Learning Together

By now your child knows coins and has had some practice making change. He or she also is learning lots of math. So, let's put the two together and work on "money math."

To help your child understand the concept of making change, use real or play money to do this activity together. Ask these questions:

• What change should you get from these purchases?
• What would be the fewest possible pieces of money you would use?

1. You give a $5 bill to pay $2.50
2. You give a $10 bill to pay $2.50
3. You give a $1 bill to pay $.51
4. You give a $20 to pay $14.98
5. You give a $1 bill to pay $.33

Answers:

1. $2.50 change—two $1 bills, half-dollar or two quarters
2. $7.50 change—$5 bill, two $1 bills, half-dollar or two quarters
3. $.49 change —quarter, two dimes, four pennies
4. $5.02 change —$5 bill, two pennies
5. $.67 change—half-dollar or two quarters, dime, nickel, two pennies

Having Fun

Have your child identify or find out whose picture is on the following bills.

$1 ________________________________________
$5 ________________________________________
$10 _______________________________________
$20 _______________________________________
$50 _______________________________________
$100 ______________________________________