Hi, I’m Zara Maddison. I’m excited to share with you the differences between the money you can hold in your hand and the money on computers or phones.
As a 12-year-old, I’ve seen my parents use cards to buy things. They talk about digital money. But what is it, and how is it different from coins and bills we use every day?
Many kids and adults are using digital money more and more. They use online banking services too.
Let’s explore the world of money together. We’ll look at both worlds to understand the differences.
Who Am I and Why Money Matters to Kids
Hi, my name is Zara. I’m 12 years old. I run a site called Assetsforkids. I teach kids about money.
Meet Zara from Assetsforkids
I love sharing my money knowledge. It’s super cool. A Forbes article says kids as young as 7 learn about money. I’m glad you’re interested too!
Why Learning About Money is Super Important
Money knowledge helps us make smart choices. It’s not just for grown-ups. It’s for kids like you and me. Learning about money helps us build a better financial future.
What Money Really Is and Why We Use It
Money is a big part of our lives. But have you thought about what it really is? Money lets us buy things we need or want. It has changed a lot, from coins and bills to digital money.
Money as a Trade Tool
Money helps us trade easily. It makes swapping goods and services simple. Before money, people bartered, trading things directly.
How People Traded Before Money Existed
Carolyn Kissane from the CFR Academic Webinar Series says people bartered before money. For example, someone with potatoes might trade them for a toy. But finding a fair trade was hard.
Why Money Makes Trading Easier
Money makes trading simple because it’s a common token. You can sell potatoes for money and then buy a toy. This makes getting what we need easier.
Physical Money and Digital Online Money: What’s the Difference?
The world of money has two parts: physical and digital. Each has its own special features. Knowing these differences helps us understand today’s money world better.
Coins and Bills You Can Hold in Your Hand
Physical money is what we use every day. It’s something we can hold and see. This makes it easy to use for buying things.
What Makes Physical Money Special
Physical money is special because it works everywhere. You don’t need any special tech to use it. You can see it, touch it, and give it to someone directly.
Where We Use Physical Money Today
We still use physical money in many places. This includes local stores, markets, and some online deals where you pay cash when it arrives.
Digital Money That Lives in Computers
Digital money is money that only exists online. It’s key for online banking and digital payments, says Investopedia.
How Digital Money Works
Digital money moves money from one place to another online. It doesn’t need physical money. This is thanks to digital currencies and online banking.
Places Where We Use Digital Money
We use digital money online a lot. This includes e-commerce sites, online banking apps, and digital wallets. It’s great for fast transactions.
How Physical Money Works in Our World
The money we use every day has a fascinating story. Coins and bills are key parts of our economy.
Where Coins and Bills Come From
Coins and bills are made by governments and banks. The U.S. Mint makes coins. The Bureau of Engraving and Printing makes bills. For more info, visit Assets for Kids.
How to Use Physical Money in Stores
At a store, you can use physical money to buy things. Just give the cashier the money you owe. They’ll give you change if you get too much.
Cool Facts About the Money in Your Pocket
Did you know some coins are made from special metals? Or have cool designs? For example, the U.S. Mint makes coins for big events. These unique features make money interesting and valuable.
Knowing about physical money helps you manage your money better. It shows where it comes from and how to use it. This way, you can make better money choices.
The Digital Money Universe
The digital money world is complex but interesting. It’s a big part of our lives today. It’s not just about money. It’s about tools and platforms that make money management easy and efficient.
Bank Accounts and Debit Cards for Kids
Many kids now have bank accounts and debit cards. They help kids learn to manage money. A Forbes article says kids use digital banking apps to handle their money.
These accounts are safe and teach kids about money. They can store money and buy things online or in stores.
How Online Banking Works
Online banking is like a virtual bank. You can store money and do many things online. You can check your balance, move money, and save for the future.
It’s easy to use from your phone or computer. It makes banking convenient.
Apps That Help You Save and Spend
There are many apps to help kids save and spend money wisely. These apps have features like savings goals and spending trackers. They even offer rewards for saving.
They make learning about money fun and interactive. It’s a great way for kids to understand money.
Staying Safe with Both Types of Money
Learning about digital and physical money is important. We need to know how to keep them safe. Each type needs its own way to avoid loss or misuse.
Keeping Your Physical Money Safe
Physical money should be kept safe. You can use a piggy bank at home or a wallet with you.
Smart Places to Store Your Cash
Think about using a locked box or a safe at home. Always keep your wallet safe. Be careful when you handle cash.
What to Do If You Lose Money
If you lose money, tell an adult fast. They can help find your lost cash.
Protecting Your Digital Money
Digital money safety is as important as physical money. Keeping your passwords safe is key.
Password Safety for Kids
Never share your password with anyone. Make a strong password with letters, numbers, and symbols.
Asking Adults for Help with Online Money
Always ask an adult for help with online banking or apps. They can help keep your digital money safe.
Fun Money Projects for Kids Your Age
Learning about money can be fun. I’m excited to share some cool ways to do it. These activities will make learning fun and teach you important financial skills.
Physical Money Activities You Can Try Today
Let’s start with some cool things you can do with physical money. You can start a coin collection or make a savings jar.
Starting Your Own Coin Collection
Gather coins from different countries. Or collect specific coins from your pocket money. This teaches you about different currencies and the value of money.
Creating a Cool Savings Jar
Decorate a jar and use it to save your money. Set a savings goal, like saving for a toy. Watch your money grow.
Digital Money Games and Apps
For digital money, there are many money games and savings apps for kids. These tools teach money management in a fun way.
Safe Money Apps for Kids
There are apps that help you save and spend money safely. They show how digital banking works and why saving is important.
Online Games That Teach Money Skills
You can play online games that simulate real-life financial situations. These games are a great way to learn about money without risk.
Conclusion: Being Smart with All Types of Money
Being smart about money is very important. It can change your life a lot. Knowing about digital currencies helps you make good money choices.
It’s not just about the money type. It’s also about how you handle it. Learning the good and bad of different money types is key.
Being smart with money helps you make better choices. This way, you can reach your goals. So, keep learning and you’ll get better at managing money fast.