Definition of economics for kids is one of the toughest duties for parents and teachers. Kids lack the exposure to help them understand the big ideas of economics. Yet, you should explain the concepts to kids at the earliest age possible to raise their consciousness and set a perfect foundation for them to learn.
Explaining what is economics for kids is not as simple as it sounds. They do not understand how money works. All they know is that it comes from dad or mom, and their pockets are always full. It is even more difficult for a teacher to explain the concept because teachers spend very little time with these children.
Here are winning tips on how to explain economics to a kid:
Turn the home into a marketplace
Create a virtual marketplace in the house. Develop a currency and price for everything. For instance, someone should be paid to cook. Another will earn by clearing the table. Set the price for each activity and track the accumulation of money from domestic chores.
At one point, the inactive people will run out of currency. The most active members on the other hand will have more money. The kids will begin to understand that money comes from adding value to people and places. It is the most basic way to explain economy to a child.
Those who run out of money will have to get loans. They will also find ways to earn the money and remain afloat. You will be planting the seed of entrepreneurship in the kids.
Take the children to the market. The market involves real buying and selling. Let them witness the actual exchange of money. As they witness the buying and selling, it becomes a kid-friendly definition of economics, this time in a practical manner.
Give the kids some money for the family or personal shopping. Direct them to use the money wisely. Introduce the idea of limited finances and budgeting. Watch them make priorities and get into dilemmas about what to purchase. The images of buying and selling never leave the mind of a child. If they ran out of money, they will become better shoppers in the future. The marketplace is the best class to teach about the economy and economics.
Let the kids earn their allowance
Do not give allowances to kids of a responsible age. Get them off the sofa or bed to earn their allowance. They can earn more by working harder. If they choose to be lazy, they will earn less. Their activity begins to affect the items they can get in the house. Some can buy more candies while others are penniless. This is a practical economics class that is also helping the kids to learn about being responsible.
Monopoly is a game that comes packed with rich lessons on the economy. It helps kids and the players to balance between short and long-term investments. It teaches the players that each decision comes with consequences.
Monopoly involves playing buying assets while maintaining liquidity. It is a great socialization game that comes with lessons while you play. It can be played with kids and adults, enabling you to enjoy the class as well.
Ask what they know
Teach the kids from their point of knowledge. Kids understand money issues depending on their age and their level of exposure. Ask provoking questions to push them to think and express their ideas. It will expand their understanding of monetary issues.
Economics for elementary students requires creativity. You must bring yourself to the level of the kid to explain some of these concepts easily. Understand what the kids know and grow your explanation from there. Use practical situations to simulate what happens in the marketplace. As you build on the simple ideas, they will understand the complex ones.