When should parents introduce concepts relating to financial literacy to their children? My response: even toddlers and preschoolers can begin to learn the basics of money (in their case, coin) management.
After primary grade children learn about the history of money, and what it means to save money (see part 5), you can extend that learning to include concepts of fund-raising, donating, accounting for money, and maintaining a bank account.
Here are three additional money related picture books:
In Judith Viorst's Alexander, Who Used to Be Rich Last Sunday, it's all about instant gratification for Alexander. He can't seem to stop himself from buying anything and everything he happens to have money for. What's he left with in the end? Bus tokens. Children will get a pretty good idea of why they should think before they spend their money. It's most appropriate for children in grades K through 3.
For children in grades 2 through 4, working as a team to raise money is the subject of Sluggers' Car Wash, by Stuart J. Murphy. Not only do the characters collaborate and plan a fund-raiser, but they keep track of the money as well.
What I especially like about this book is that many of the calculations are shown. For example, 12 dimes are calculated to be worth $1.20, and the totals of all of the denominations are shown, with decimals being lined up. When students first learn to add with decimals, sometimes it takes a while before they remember to line them up. So, there are many great examples of addition calculations which children can follow and practice on their own.
There are so many ways that this book could be used for hands-on activities with money, either individually or in groups. As in all MathStart books, there are recommended activities presented at the end of the book.
For children in grades 3 through 5, you can get even more of a conversation started with Loreen Leedy's Mon$ter Money Book, which consists mainly of dialog. To be a member of the Monster Club, dues are collected. So far, the club has $54.00, and the members talk about ways to spend the money.
It's important to note that the illustrations are not the highlight of this book, and are a little "young" in comparison with the concepts, but there are so many important money-related terms that come up in the conversation. Here are some of them: dues, allowance, borrowing, investing, profit, donating, saving, spending, budgeting, earning interest, bank accounts, checks, and ATM cards (there's also a glossary at the end). Please keep in mind that there is no detailed discussion of any one of these topics, but the book provides a very nice introduction to money management.
Even though older children may not appreciate the pictures, they will enjoy the conversational format of the book, and may even enjoy reading it aloud together and discussing it in pairs or small groups. They will be able to follow the book in ways that younger children will not. If I were to read it to a younger child, I would focus on the pictures, and add a few words to briefly touch on a few, but not all, of the concepts.
The sooner you get your child thinking about how to handle money, including how to make informed spending choices, the more she'll be prepared to make wise decisions concerning money when she finally goes out on her own. So many real world connections can be made with each of these picture books. From counting out allowance money, to deciding whether to keep it at home or in a bank account, to figuring out whether to save it or spend it, to group discussions about fund-raising....these books will help your child see that money is not only an important topic, but one that we are all surrounded by every day.
If you have any related picture book or activity ideas, please feel free to share!
I took a trip to Philadelphia, Pennsylvania with my family recently, and we took a tour of The US Mint. I'll tell you all about it, as well as the fun and engaging follow-up activity my husband enjoyed with our children when we got home, next week.
In the meantime, I hope you enjoy the first few days of autumn!