Money can be a gelduitleg.nl concept. But it’s one that everyone should understand because it can have a direct impact on their financial wellbeing. That’s why it’s a good idea to start explaining money to kids at a young age, to help set them up for success in the future.

A common misperception is that the term “money” refers to something tangible. However, this is not strictly accurate. In order for something to be considered money, it must first be accepted as a medium of exchange in society. This is what gives it value, and it’s also why we should treat our money as a public resource, backed by law, instead of privately issued debt for the benefit of banks.

Making Cents of Money: Explaining Its Purpose and Functions

In addition to its role as a medium of exchange, money also acts as a unit of account, which helps us keep track of changes in the value of goods over time and across transactions. This is why it’s important to keep a close eye on how much we spend, as well as our spending habits as parents.

There are a number of ways to get kids excited about the importance of saving and learning how to make smart decisions with their money. A great place to start is with a piggy bank or clear jar that they can see their savings growing in over time. Getting them involved in the process will help them develop positive, healthy spending and saving habits that will last a lifetime.