What is money?
People use money to buy and pay for things.
By having money people are able to support themselves in order to live in a comfortable way.
Watch - Explore how we get and use money.
The Community Club friends explore making money, budgeting and saving while selling their old toys.
Ariana: Hey, it's really great that we can raise money for the community club by selling our old toys.
Harry: My mum said that you can make money by going to work.
Max: That's true Harry. Working is the most common way to make money.
Lucy: My uncle is unable to work because he's sick. But I think he gets some money from the government.
Max: Ah, okay. Sometimes money is given to us by our government to help take care of us during difficult times.
Money can come from lots of different sources, but one thing to remember is that when you get money, it's a good idea to budget.
A budget is keeping track of exactly how much money you have and deciding how best to spend it. Spending your money wisely is really helpful.
Mo: But what does 'spending your money wisely' really mean?
Max: Spending wisely means taking care of the things you need first and the things you want second.
For example, the things we need are, shelter, food, water and clothes.
And the things we want are things like toys, computer games and ice cream.
Lucy: But, what if you don't have enough money left over for the things you want?
Max: If you're able to, you can try to save the money you have left over until you have enough to buy what you want.
Saving isn't always possible, but trying to be responsible with money and budgeting well can help us to get the things we need and want.
Amazing effort everyone. You made lots of money for the community. How do you think we should spend it?
Lucy: Let's plant more flowers in the community club garden!
Harry: Fix up our park fence.
Ariana: Donate to the beach clean-up fund.
Mo: Get a table tennis table.
Max: Okay, we'd better take a look at our budget!
Where does money come from?
People can earn money in different ways.
Image caption, By working
Having a job when you are old enough and working is the most common way that people can earn money.
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What are needs and wants?
Money allows us to pay for the things we need and want.
Often people take care of the things they need before spending money on the things they want.
Needs are things that are essential to us to be able to live. This includes water, food, clothing and shelter.
Wants are things that we enjoy or like, but don't need, such as toys, video games or holidays.
What is a budget?
Budgeting is a way of keeping track of how much money you can afford to spend.
Keeping a budget is a great way to help people decide on the best way to spend their money.
It also allows people to see how much things cost.
What is saving?
If you don’t spend all of the money you have, you can choose to save it for another time.
One way is by paying it into a bank account.
Over time you may save enough money to buy something you really want.
Saving money isn’t always possible as not everyone has the same amount of money.
Time to discuss
With a friend or family member, talk about how people earn money and how they look after it.
What do you know about different forms of money, like coins, notes and cards? Talk about these too!
Activity
Separate the needs from the wants
Click on the image below to see some different items.
Divide them into two groups, called 'Needs' and 'Wants'. Think about your reasons for placing each item in a particular group.
Quiz
How much can you remember about using money? Try this quiz to find out.
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