Money explanation
Money is a medium of exchange that people use to trade goods and services. It can take a variety of forms, including coins and paper notes. But whatever form it takes, money has three basic functions: It is durable, divisible, and transportable.
Durability gelduitleg.nl to the physical ability of money to withstand damage and decomposition. It also refers to its ability to retain value. For example, if you found a $20 bill that you left in your coat pocket from last year, you would be pleased to know that it still has the same value it did when you left it there.
Money Management 101: Budgeting, Saving, and Investing
Divisibility refers to the ability of money to be divided into smaller units while maintaining its value. For example, a $100 bill can be separated into two $50 bills that each have the same amount of value. Transportability is the ability of money to be easily moved across time and space. For example, a $100 bill can travel from one person to another by being deposited into their checking account or used to buy items at stores and restaurants.
You can teach kids about the importance of money by helping them understand where it comes from. Explain that they earn money when they get paid and then use it to pay for their daily needs like food, clothing and housing. Encourage them to think about their wants before spending money and try to balance those needs with their wants.