KIDS FINANCE: M is for Money – The power in your pocket!
What you need to know:
- Long ago, people traded goods, also known as batter trade. For example, one would exchange maize for fish at the local market. But what if the fisherman didn’t need maize? That’s why money was invented
By Tracy Rabi
Have you ever wondered why we use money instead of just trading things? Long ago in Tanzania, people traded goods, also known as batter trade. For example, one would exchange maize for fish at the local market. But what if the fisherman didn’t need maize? That’s why money was invented to make trading easier!
What is money?
Money is anything people use to buy things or pay for services. It helps us get what we need or want without having to trade or swap things all the time.
Money isn’t just coins and bills; today, we have mobile money, bank cards, and even digital payments like M-Pesa. It helps us buy things, measure value, and save for the future.
How does money work?
Money works because everyone agrees it has value. When you give money to a shopkeeper, they accept it because they know they can use it somewhere else too.
You can use money to:
* Buy things like food, toys, or clothes
* Pay for services like a haircut or a bus ride
* Save for future needs
* Give to help others
How do you earn money?
You earn money by working or doing something useful. Adults go to jobs like teaching, building, or selling things. Kids like you can also earn money by helping with chores, running a lemonade stand, or even creating handmade crafts to sell!
How do you grow or multiply money?
One smart way is to save it in a piggy bank or, even better, a savings account at the bank.
The bank gives you extra money called interest just for saving! Another way is to invest—that means putting your money into something that can grow, like a small business or shares in a company. Money is a tool—not a toy. If you use it wisely, it can help you reach your goals, take care of others, and build a great future!
