Objectives:
2.E.1.5 Explain how money is used for saving, spending, borrowing and giving.
2.E.1.6 Summarize the role of financial institutions relative to savings.
Money, money, money---MONEY!
This week, we are learning about what money is and how we use it.
Let's review what we already know:
People have needs and wants.
Our market economy means people can open businesses to sell goods or provide services to meet people's needs and wants.
People can use credit or debit cards to purchase things digitally. This can almost make it seem like people aren't spending money at all. Using these cards to buy things mean you will have a bill for what you've spent, which you will pay later.
You can also use a check to pay for something. A check gives permission to the bank to withdraw money from your account and deposit money in someone else's.
We can also use cash to purchase things. We have studies different coins and bills in our math classes.
Now that we've reviewed what we know about money, let's talk about what we can do with it.
We can EARN money. When we earn money, it means we are getting it. What are some ways you might earn money? What are some ways an adult might earn money?
We can SPEND money. Most of us are very familiar with spending money. What is the last thing you or your family spent money on?
We can SAVE money. Sometimes we don't have enough money for what we want right now. Or, we may want to save money in case of emergencies. What do you do to save money? Ask an adult in your family what they do to save money?
We can BORROW money. Sometimes we need money quickly and do not have enough. We may need more than we can save within a few months. We can borrow money and pay it back later. What is the difference between borrowing money and getting it as a gift?
We can DONATE money. Sometimes we may not need money as much as others do. We may have extra money. We may care so much about something that we set aside money for that cause. When you donate money, you give it away without thinking of yourself or expecting anything in return. What is a cause you care very much about? What might your donation do to help that cause?
Let's review what we just discussed with this song from Cha-Ching: