Wise Money Management
3rd to 5th
Children need to understand how to manage their money by understanding how their nominal income is reduced by taxes. They also need to understand interest rates and how they work in their favor when they invest and how they work against them when they borrow. A basic understanding of percentages is important to figure out the expected return from various investments they could make. It's important to realize that risk and reward go hand-in-hand. Borrowing is almost unavoidable but there are responsibilities that come with borrowing and how insurance could help protect from unforeseen circumstances.
What Children Would Learn
- Price based on supply and demand
- Purchasing with cash versus credit
- Spending versus Investing