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Students learn to think about their choices before using their money or resources.
Imagine you have five shiny coins in your pocket. You see a yummy chocolate bar and a cool new pencil for school. If you buy the chocolate, your coins are gone! How do you know if you are making a smart choice?
When we want something from a store, we have to give the shopkeeper money. This is called spending. When you spend money, it leaves your pocket or piggy bank. You get to take the item home, but the money is gone! It is important to think before we spend. We want to make sure we are getting something that is worth our hard-earned coins. Spending is a choice we make every day.
Quick Check
If you give a dollar to a store to get a sticker, are you 'spending' or 'saving'?
Answer
You are spending.
Every item has a price. The price tells us how much money we need to spend. We use numbers to compare costs. If a toy car costs $\$5\, we can see which one is more expensive. We can use math to help us: since $\$5 > \, the car costs more. By looking at the price tags, we can decide if we have enough money to buy what we want.
Let's look at two snacks at the grocery store:
1. An apple costs $\$1\.
3. Since $\$1 < \, the apple costs less money than the chips.
A need is something you must have to stay safe and healthy, like water, healthy food, or warm clothes. A want is something that is fun to have but you can live without, like a video game or a candy bar. Smart spenders always buy their needs first. If you spend all your money on a toy (a want), you might not have enough left for a healthy lunch (a need)!
Imagine you have $\$10\.
2. You want a new comic book. It costs $\$5\ left. You cannot afford the umbrella!
4. The smart choice is to buy the umbrella (the need) first.
Quick Check
Why should you buy a warm coat before a new toy?
Answer
A coat is a need that keeps you safe and warm, while a toy is a want just for fun.
You have $\$8\.
2. A giant balloon costs $\$3\$6 + \$3 = \.
4. Since $\$9 > \, you do not have enough money for both. You must choose the one that is most important!
What happens to your money when you spend it?
Which of these is a NEED?
If a book costs $\$4\, the book costs more money.
Review Tomorrow
In 24 hours, try to name three 'needs' and three 'wants' you see in your own house.
Practice Activity
Next time you go to the store, look at two different items. Find the price tags and tell a grown-up which one costs more money.