National Dollar Day is right around the corner, and we like to use this day to encourage financial literacy for children. Money is an essential part of our daily lives, and it’s essential to teach children about its value and how it has changed over time. Preschool is an ideal place to start teaching children about money. While they may not yet understand the intricacies of currency, they can still learn about the history of money and how it has evolved over time.
The History of The Dollar Over Time
In 1924, you could buy something for just one dollar. However, if you had bought that same item in 1974, it would have cost you $2.88. And, if you were to buy that same item in 2024, it would cost you $18.27. This shows how the value of money has changed over time due to various factors such as inflation and economic growth.
Tips for Teaching Children About Money
Teaching children about money at an early age can help them develop strong financial skills that will benefit them throughout their lives. Here are some tips to help you teach your preschoolers about money:
1. Use play money: Using play money is an excellent way to help children learn about currency and its value. You can start by introducing them to coins and bills and teaching them how to count money.
2. Teach them to save: Encourage your children to save their allowance or any money they receive as gifts. This will help them understand the value of money and the importance of saving for the future.
3. Make it fun: You can make learning about money fun by playing games such as “store” or “restaurant.” These games help children understand how money is used in real-life situations.
4. Be a role model: Children often learn by example, so be a good role model when it comes to money. Show them how you save and budget for expenses.
5. Talk about goals: Encourage your children to set financial goals, such as saving for a toy or a trip. This will help them understand the importance of setting goals and working towards them.
Finally, it’s essential to highlight the fact that the value of money continues to change over time. A dollar now will not have the same value in 20 years or even 50 years. This is why it’s essential to teach children about the value of money, how it has changed over time, and how to manage it effectively. With these skills, they will be better equipped to navigate the world of finance as they grow older. How are you teaching your children about money? Visit us on Facebook and let us know!
