Money Facts for Kids
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Money facts for kids are essential to know as they help children understand the true value of money and how to manage it. Moreover, they also help them to learn the basic concepts of financial literacy. Here are some fascinating money facts for kids.
1. Bills and Coins
The US Dollar bills come in denominations of $1, $2, $5, $10, $20, $50, and $100. The highest denomination is $100, and it is also the largest in size. The US Dollar coins come in denominations of 1 cent (penny), 5 cents (nickel), 10 cents (dime), 25 cents (quarter), 50 cents (half-dollar), and $1 (Sacagawea and Presidential).
2. Money Around The World
Different countries have different currencies, and their values are not the same. For example, the US Dollar and Canadian Dollar are almost the same in value, but the Indian Rupee and the US Dollar have a vast difference.
3. Saving Money
Smart money management means saving money—it means putting some of your money aside for future use. Kids can start developing their savings habit by setting a goal and then putting aside a portion of their pocket money or earning to achieve it.
4. Interest Rates
When you put money in a bank account, the bank pays you a small amount of money known as interest. Interest rates vary from bank to bank and type of account, but they can help your money grow over time.
5. Cost of Living
Different places in the world have various costs of living. The cost of living refers to how much money you would need to live comfortably in a particular place.
6. Consumer Price Index
The Consumer Price Index (CPI) measures the change in the prices of goods and services over time. It is a useful tool for tracking inflation, which means the increase in prices of these goods and services.
7. Credit Cards
Credit cards are a way of borrowing money from a bank or credit card company. You can use them to buy things now and pay for them later. When you use a credit card, you are charged interest on the amount you have borrowed if you do not pay the full amount on time.
8. ATM Fees
When you use an ATM (Automated Teller Machine) that does not belong to your bank, you might get charged a fee. It is important to be aware of this fee before you withdraw money.
9. Budgeting
A budget is a plan for how much money you will earn, how much you will spend, and how much you will save. It’s essential to budget money because it helps you pay bills, save for goals, and make sure you’re not overspending.
10. Needs vs. Wants
It is crucial to learn the difference between needs and wants. Needs are essential things like food, clothing, and shelter that we require to live. Wants are extra things that we desire, but we do not need them to survive.