Spriha's Journey Towards Financial Literacy
Chapter 4: Earning Money
Key topics in this chapter
1.1 Earning at Home: Discuss household chores and responsibilities.
1.2 Earning in the Neighborhood: Babysitting, pet walking, or plat watering.
1.3 Managing Your Earnings: Teach children to allocate their earnings wisely.
1.4 Exercise: Encourage children to take up chores to earn a small amount.
Introduction
In the previous chapters, we followed Spriha on her journey to understand the value of money and the difference between needs and wants. Today, we join her as she learns about earning money by doing some chores at home or in the neighbourhood.
Earning Money at Home
Have you ever thought about how you can earn money as a kid? There are several ways to do it. At home, you can take on responsibilities and chores to earn your allowance. Chores could include making your bed, helping with the dishes, or feeding the family pet.
Spriha had her own set of chores to complete. She was in charge of keeping her room tidy, making her bed every morning, and helping set the table for dinner. Each week, when she did her chores, her parents rewarded her with her allowance.
Earning Money in the Neighbourhood
In your neighbourhood, there are opportunities to earn money as well. You could offer to babysit for a neighbour, walk pets, or help with watering plants. These are all ways to earn money by providing services to others.
Spriha learned that some of her friends had little jobs in their neighbourhood. They babysat their younger siblings, watered plants for elderly neighbours, or walked pets. These small jobs helped them earn some extra money.
Manage Your Earnings
When you earn money, it’s important to make wise choices about what to do with it. Spriha’s parents taught her that she should save a part of her earnings. They said, “Saving is like planting a seed for the future.”
Spriha decided to save some of her earnings for her dream bicycle. She also used some of her money for spending on little treats and gifts for her friends. Saving and spending wisely helped her become a responsible money manager.
Key Takeaways
- Kids can earn money by taking on responsibilities and chores, like helping with household tasks.
- Earning money in the neighbourhood can involve tasks like babysitting, pet-sitting, or watering plants.
- It’s important to save a portion of your earnings and spend wisely, making choices about where to allocate your money.
- Responsible money management involves budgeting and balancing spending and saving.
- By earning money and managing it wisely, children can learn the value of hard work and financial responsibility.
Spriha was excited about her new responsibility and the opportunities to earn money. She knew that by managing her earnings wisely, she could get closer to her goal of owning that shiny bicycle.
In the next chapter, Spriha will explore the fascinating world of saving money and understand the benefits of putting money aside for future needs and wants.
Exercise 4: Earning and Managing Your Money
It’s your turn to earn some money at home! Talk to your parents about the chores and tasks you can take on to earn an allowance. Think about how you’ll save and spend your earnings. Share your plan with your parents.
Step 1: Discuss about Chores with Parents
- Initiate a Conversation: Talk to your parents about your interest in earning an allowance. Let them know that you’re excited about learning to manage money.
- Ask for Chores and Tasks: Inquire about the chores or tasks you can take on to earn your allowance. Make a list of the responsibilities your parents would like you to help with, like making your bed, setting the table, or doing laundry.
- Clarify Allowance Amount: Ask your parents how much you can earn for completing specific chores or tasks. Discuss the frequency of payments (weekly or monthly).
Step 2: Earn and Manage Your Earnings
- Create a Savings Jar: Get a jar or container and label it as your “Allowance Savings.” This will be your special place to collect your earnings.
- Complete Chores and Tasks: Start doing the agreed-upon chores and tasks regularly. Be responsible and diligent in completing them.
- Receive Your Allowance: When you receive your allowance, put a portion of it into your Allowance Savings jar. You can decide on the percentage you want to save, whether it’s a specific amount or a percentage of your earnings. For example, you might decide to save 20% of your allowance.
- Track Your Savings: Keep a simple record of how much money you’ve saved in your Allowance Savings jar. You can create a chart or log to monitor your progress.
Step 3: Spend Your Earnings Responsibly
- Set Spending Goals: Think about what you want to spend your allowance on. It could be a toy, a book, or something fun. Make a list of your spending goals.
- Budget Your Allowance: Decide how much money you want to spend on each goal. You can allocate a specific amount to each goal, so you know what you’re working toward.
- Practise Responsible Spending: When you have saved enough money for one of your goals, you can spend your earnings on it. This teaches you the importance of budgeting and making informed choices about your spending.
Step 4: Review and Discuss with Parents
- Regularly Review Your Progress: Periodically, talk to your parents about your savings progress. Share how much you’ve saved and what you plan to spend your earnings on.
- Discuss Financial Goals: Use this opportunity to discuss financial goals and responsible spending with your family. They can offer guidance and celebrate your financial achievements.
By following these steps, you’ll not only learn the value of earning money but also develop essential skills in budgeting and managing your earnings responsibly. You’ll gain a deeper understanding of financial responsibility and how to save and spend your allowance wisely as you continue your journey toward financial literacy.