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Why do people have to pay for things with money? |
Economy
In order to live, all people need basic things like food, clothing, and shelter. To have these things, grown-ups must work jobs so they can buy the things they need, and sometimes also the things they want!
Money is a system for trading between people so we can all get these things. To try and keep the system fair, people have to earn money by working hard at their job! That way, everyone who has a job can get something back for all of the hard work they do! And when we pay for things with money, we're rewarding the people who worked hard with the money they have earned!
Here's another way to think of it: Since a farmer who grows food all day doesn't have time to also build himself a house, he pays the builder to do it for him. And since the builder doesn't have time to grow food when he's busy building houses, he pays the farmer to buy food! Money is a system for trading between people!
Piggy Bank!
Do you have any money of your own? Some kids receive a little bit of an allowance, like a few coins or a few dollars, to save or spend in order to help them learn about money.
Sometimes kids and their parents decide that in exchange for some extra help around the house, the kids can earn a little bit of money!
Think about this: If you receive one dollar every Friday for helping around the house, you can buy something that costs one dollar on that very day! But, if you keep the dollar in a safe place and wait until you receive another dollar the next Friday, then you can buy something that might be nicer for two dollars instead! This is what happens when you save your money. -- COOL!