1. What is Money?

Money is something we use to buy the things we need or want. It can come in coins, paper bills, or even digital money in your bank account. Money is important because without it, we can't buy food, clothes, or even fun things like toys or games.

2. How Do People Earn Money?

People earn money by working. For example, your parents might work at their jobs and get paid. You can also earn money by helping at home, like doing chores, or by selling things you don’t need anymore, like old toys. Some kids even start their own small businesses, like selling lemonade or homemade crafts

3. Needs vs. Wants

• Needs are things you must have to live, like food, water, and clothes.

• Wants are things that are nice to have but are not necessary, like toys, gadgets, or video games.

It's important to think about what you really need before spending money on what you want. This helps you make better choices when deciding how to spend your money.

4. Why Save Money?

Saving means putting aside some of your money for later. This is important because sometimes we need money for unexpected things, or we want to buy something big like a new bike or video game. If you save small amounts regularly, you'll have enough money when you need it.

5. Saving vs. Spending

It’s good to save, but sometimes you will want to spend your money too. The key is to balance both. Before you spend, ask yourself:

• Do I really need this?

• Can I wait to buy it later?

• Is it worth the money?

By thinking carefully before spending, you can save more and spend wisely.

6. What is a Bank?

A bank is a place where you can keep your money safe. Banks can help you save money and grow it over time. When you put money in a bank account, the bank might give you a little extra money as a reward for saving. This is called interest.

You can also use a bank to keep your money safe instead of hiding it under your bed. Some banks even have apps to help you keep track of your money on your phone!

7. What is Interest?

Interest is the extra money that the bank gives you when you save money with them. For example, if you save $100 in a bank account for a year, the bank might give you a little extra money, like $1. This helps your money grow over time.

8. Making Smart Purchases

Before you buy something, think about whether it’s worth your money. Here’s a checklist:

• Is this something I really need?

• Is there a cheaper option?

• Can I wait to buy it until I have more money?

Making smart purchases means being careful with your money so you don’t spend it all too quickly.

9. What is Debt?

Debt is when you borrow money from someone, and you have to pay it back later. It can be helpful in some situations (like borrowing money to buy something important), but it can also cause problems if you can't pay it back. For example, if you borrow $10 from a friend and don't pay them back, you owe them money.

It's best to avoid borrowing money unless you're sure you can pay it back on time.

A budget is a plan for how to spend and save your money. Here’s how to make one

• Step 1: Write down all the money you have (like your allowance or money from doing chores).

• Step 2: Write down how much you want to spend on things you need (like food or clothes).

• Step 3: Decide how much you want to save for later.

• Step 4: After that, if you still have money, you can decide how much to spend on things you want.

A budget helps you make sure you're not spending all your money right away.

You can use these activities and forms to practice what you learn

1. Needs vs. Wants Worksheet: Write down things you need and things you want. This will help you see the difference.

2. Budget Tracker: Create a simple budget for how you want to spend your money each week or month.

3. Savings Tracker: Write down your savings goal and track how much you’ve saved each week.

4. “Save or Spend” Decision Sheet: Before buying something, use this sheet to think about whether you should save your money or buy the item.

5. Debt-Free Future Pledge: Sign a pledge to avoid borrowing money unless it's really necessary and you can pay it back.

5. Debt-Free Future Pledge

This form is a commitment to avoid unnecessary debt.

Debt-Free Future Pledge

I, _________________________, promise to:

1. Avoid borrowing money unless it is necessary.

2. Always pay back borrowed money on time.

3. Think carefully before spending money.

4. Save for future needs and goals.

Signed: ____________________________
Date: ______________________________

These forms can be printed or shared digitally to engage students in learning financial literacy in a fun and practical way.

Learning how to manage money helps you

• Be responsible with your spending.

• Save for things you really want or need.

• Understand how banks and money work.

• Avoid borrowing too much money that you can’t pay back.

By learning these skills now, you’ll be better prepared for the future and know how to make smart choices with your money!