Exploring how we all act as buyers when we use our money for goods and services.
Imagine you have a $\$5.00$ bill in your pocket. When you walk into a store to pick out your favorite treat, you are about to become a very important person in the world of money!
Every time you use money to get something you want or need, you are a consumer. A consumer is a person who buys goods or services.
Goods are things you can touch and hold, like a toy car, a yummy snack, or a new pair of shoes. Services are things people do for you, like a barber cutting your hair or a bus driver taking you to school. Whether you are buying a physical object or paying for someone's help, you are acting as a consumer!
Quick Check
If you go to the movies and pay for a ticket to watch a film, are you a consumer?
Answer
Yes! You are a consumer because you are paying for a service (the movie experience).
In the world of money, it takes two people to make a trade. The buyer is the consumer who has the money and wants to get something. The seller is the person or the store that has the goods or provides the service.
Think of it like a team: the buyer brings the money, and the seller brings the items. For example, if a pencil costs $\$1.00\, and the seller gives the buyer the pencil. This exchange is how we get the things we need every day.
Let's look at how a trade works at an ice cream shop:
1. You (the buyer) choose a scoop of chocolate ice cream.
2. The shopkeeper (the seller) tells you the price is $\$2.00\.
4. The seller gives you the ice cream.
You are the consumer because you used your money to buy a good!
Quick Check
In a grocery store, who is the seller?
Answer
The grocery store (or the cashier) is the seller.
You don't have to be an adult to be a consumer! You act as a consumer when you pick out a book at a book fair or when you use your allowance to buy a game. Even when your parents buy groceries for dinner, they are acting as consumers to provide for the family.
Understanding that we are all consumers helps us make choices. Since we usually have a limited amount of money, like $\$10.00$, we have to decide which goods or services are most important to us.
Imagine you and your friend are at a park. You see a lemonade stand.
1. You have $\$3.00\ per cup.
3. You decide to buy one cup for yourself and one for your friend.
4. You pay the seller $\$2.001 + 1 = 2\ left over ().
In this story, you were the consumer and the buyer, and you made a choice about how to spend your money!
What is a consumer?
Which of these is an example of a SERVICE?
In a store, the person who pays money for a toy is called the seller.
Review Tomorrow
Tomorrow morning, try to remember: What is the difference between a 'good' and a 'service'?
Practice Activity
The next time you are in a store with an adult, try to identify who the 'buyer' is and who the 'seller' is. Point out one 'good' and one 'service' you see in the store!