Buying things can be fun. Sometimes, it’s a trip to the supermarket to pick up chicken nuggets for dinner — or the ice cream parlor for a chocolate soft-serve cone with rainbow sprinkles. You might go to a clothing store to get a pair of sneakers or some new pajamas — or the theater to get tickets to see a superhero movie. Or maybe your parents take you to a toy store to pick out a board game for your best friend’s birthday! Whatever you go, there’s one thing you always do at the end — pay for the things you want to buy or do.
And for that, you need money.
Money doesn’t just magically appear in your mom or dad’s wallet. Grown-ups make money in a bunch of different ways — and you might even get your own money too! Here are some ways people make money.
Having a job. Do you ever think about what you’ll do when you grow up? Become a teacher, a scientist or a firefighter? Those are all jobs, and probably the grown-ups you live with have jobs too. People might work in an office, outdoors or even at home, but the one thing that all jobs have in common is that you get to earn money by doing them! When grown-ups earn money, it usually goes into a bank account to use later or in their wallet for when they go to the store or to the movies or to put gas in the car.
Selling things. Another way to make money is to sell something you own to someone who wants to buy it — with money. For example, if it’s time to replace your baby sister’s crib with a real bed, your parents can sell the crib to someone who needs one. They can use the money they earn from the sale to buy other things — like pillows for her new bed. Or, you might have a Lego collection that you don’t play with anymore — your parents can help you sell it to someone who wants it and get money to buy something you’d rather play with.
Saving money in a bank. Did you know that banks pay you money to keep your money in it? The money they pay to do that is called interest, and the longer you leave your money in the bank, the more interest you earn. And that’s one good reason not to spend all the money you make.
Receiving gift money. A gift is something that you get just because someone cares about you. Sometimes instead of getting a present like a toy or a game for your birthday, you could get money. You can go to the store and spend that money on something you like, such as a soccer ball, or you can put it in the bank — because maybe you’ll want to save it up for something bigger, like a bike.
Getting an allowance. You might have an allowance — or money your parents give you each week — this can be kind of like a job if you get it to do chores like taking out the trash or folding the laundry. You might get less when you’re little and more when you get older.
Learning how to earn — and save — money is an important part of growing up and being responsible. What do you want to do with the money you’ll make someday?