Today marks the start of Talk Money Week. It is celebrated across the UK as an opportunity to discuss money, ask questions about it and learn about how it can affect our lives.
What do we mean by money?
Money is what we use to buy and sell things – we need it to buy lunch, to pay for a cinema ticket or get a school uniform.
As an actual object, money itself has no real value. Whether it is a metal coin or a piece of paper, its value is symbolic. In reality, money is only valuable because we trust that it is worth something.
Are there different kinds of money?
There are many ways to pay for things. Cash – coins and notes – can be used almost anywhere. Most shops will accept payment in cash and people of all ages can use it.
It is easy to keep track of your money with coins and notes because you can see them. But there are other ways to pay for things. Bank cards are very common. People use them to pay for goods and get cash from their bank accounts at an ATM.
Where does money come from?
The most common way for adults to get money is to earn it by doing a job. Different jobs pay different amounts of money. Some are full time, which means that the person goes to work every weekday. Others are part time, which means that they do not work for as many hours every week.
It is illegal in the UK for children to have jobs, but you can make money in different ways. For example, you might get pocket money for chores or receive money as a birthday present.
What is a bank account?
A bank is a place where you can put your money to keep it safe. Banks also lend people money for buying things like a house. A bank account is a record that the bank keeps of all the money you give them to look after. You can put money in whenever you like and take it out if you want to buy something. If you leave your money for a long time, the bank pays interest. This is a kind of reward for saving it.
What are savings?
Saving is about not spending your money straight away, but putting it away so you can spend it later. Lots of people have a bank account for their savings.
You can also save money at home with a piggy bank or money box. One good way to make sure you always have some savings is to put aside a little of everything you have. If you get pocket money for chores, try saving 10p out of every pound you receive.
Does money affect how we feel?
It can. The way we feel about things can vary, and our emotions change depending on what is happening and where we are. Money is something that can change how we feel. It can make us feel happy, excited or powerful. It might also make us worried or nervous.
Making good decisions helps you feel good about money. For example, buying something you have been saving up for can make you feel satisfied and excited. But spending your own money on a present for somebody else can also make you feel happy.
- Would you rather do a job because it was interesting or because it made you lots of money?
- Make a budget for your pocket money. (If you do not get pocket money, imagine you receive £10 per month.) Your budget should show how much money you have and how much you want to spend on certain things. If something is expensive, work out how much you need to save, and for how long, until you can afford it.
- Being worth something. Usually we measure value in how much money it is worth – like a car or house. With money it is the other way round. The value is based completely on what we know we can buy with it.
- Short for “automated teller machine”. Some people also call these cash points. They are machines with computers that are used for banking and taking out money.
- To receive something as pay for doing work.
- Something that is against the law or rules.
- When a bank gives somebody money to help them buy something, it is called a loan. The person borrowing money has to pay it back. Usually the banks charge a small amount of money for a loan.
- 10p out of every pound
- By putting aside 10% (one out of every 100), you keep most of your money for now but always have some put by.
- The different feelings we have. Emotions can be positive, like joy or excitement. They can also be negative, like hatred and fear.