What is Money?

Hi Daniella and Alisia! Today, we are going to talk about money. Money is something we use to buy things we need or want, like toys, food, and clothes. Think of it like a special tool for trading!

Why Do We Need Money?

Imagine if you wanted to buy a toy. If you didn’t have money, you would have to trade something for it. But what if the person selling the toy didn’t want your toy or favorite candy in exchange? That’s where money makes things easier!

Types of Money

• Coins: These are small, round pieces of metal in various sizes like pennies, nickels, dimes, and quarters.
• Paper Money: This is what we call bills, and they come in different amounts, like $1, $5, $10, etc.
• Digital Money: Sometimes we use credit and debit cards or even pay with our phones, which means we don’t always use coins and paper bills.

How Do We Get Money?

We can earn money by doing jobs. For instance, you could do chores at home or help your neighbors. This is called earning money. The more jobs you do, the more money you can get!

Saving and Spending

When we get money, we can do two main things: save it or spend it. Saving means putting money away for later, while spending means using money to buy things. It’s good to save some money for future wants, like a bigger toy or a fun experience.

Conclusion

So, money is a special tool that helps us trade for things we want or need. By earning money, we learn to save and spend wisely. I hope this helps you understand money better! If you have any questions, just ask!