Learn 30 Financial Literacy Poems With Sarah
What is Money?
What are Needs and Wants?
Needs are the things we must have to live and stay healthy, like food, water, a place to live, and clothes to keep warm. Wants are things we’d like to have but don’t need to survive, like toys, candy, or video games. It’s important to get our needs first before spending money on our wants!
What is Pension?
A pension is money that people get after they stop working because they are too old to work anymore, like a big “thank you” for all the work they did. While they are working, they save some money, or their company saves it for them, so when they retire, they can still buy the things they need, even if they aren’t earning money from a job anymore.
What is Record Keeping?
What is Retirement?
Retirement is when a person stops working full-time, usually because they are older and have worked for many years. After retirement, they have more free
time to do things they enjoy, like traveling, spending time with family, or hobbies. They often use savings or a pension to pay for their needs since they aren’t earning money from a job anymore.
What is Saving?
Saving means putting money aside instead of spending it right away. You can save money for something important in the future, like a toy, a trip, or even for emergencies. When you save, you’re making sure you’ll have money when you really need it!
What is Scam And Fraud?
A scam is when someone tricks you to take your money or personal information by lying or pretending to offer something real. Fraud is when someone cheats or lies to get something that doesn’t belong to them, like using a fake identity or stealing someone’s money. Both scams and fraud are unfair and dishonest, and it’s important to be careful so you don’t fall for these tricks!
What are SMART Goals?
SMART goals are a way to set clear and achievable goals. Each letter in “SMART” stands for something important:
• S is for Specific:
Make your goal clear and detailed.
• M is for Measurable:
You should be able to track your progress.
• A is for Achievable:
The goal should be realistic and possible.
• R is for Relevant:
It should matter to you and help you in some way.
• T is for Time-bound:
Set a deadline for when you want to achieve it.
For example, instead of saying, “I want to save money,” a SMART goal would be, “I want to save $20 in two months by setting aside $5 each week.”
What is Spend?
Spending means using your money to buy things you need or want, like food, clothes, or toys. When you spend money, you trade it for something you would like to have. It’s important to spend wisely so you don’t run out of money for things that are more important later!
What is Tax?
Taxes are money that people pay to the government to help pay for things we all use, like schools, parks, roads, and police. When adults earn money from their jobs, a small part is taken out as tax. When we buy things, there’s often a little extra cost added for tax too. This money helps make our community a better place for everyone!
Do you know ‘ Time is Money’?
The saying “time is money” means that the time we spend can be as valuable as money. Just like we earn money when we work, we can also miss out on opportunities if we waste time. For example, if you spend time studying, you learn new things that can help you in the future, just like earning money for doing a job. So, using our time wisely can help us achieve our goals and be successful, just like making money!
Do you know, ‘ Money Is A Game’?
“Money is a game” suggests that money operates within a set of rules, players, and strategies, similar to a game. Success requires understanding the rules (laws, financial systems), using effective strategies (saving, investing, managing risk), and maintaining the right mindset (confidence, patience). Like a game, it’s about continuous learning and adaptation, with the goal being long-term growth rather than a one-time win.
What is Financial Risk?
Financial risk is the chance that money might be lost when making a financial decision. Imagine you have some allowance saved up and want to buy something special. If you spend it all at once, there’s a risk you might not have money left if something important comes up later. In finance, grown-ups make decisions about money that can either grow their savings or put them at risk of losing some. It’s like a game where you balance being careful and taking chances, hoping the choices you make today will be safe and smart for the future.
What Is Earn Money?
Earning money means getting paid for doing work or completing tasks. Imagine you help a neighbor by watering their plants or cleaning up, and they give you a few dollars as a thank you. That’s earning money! People earn money by doing jobs like teachers, doctors, or bakers who work to help others and, in return, get paid. Earning money lets you buy things you want or need, save for later, or even help others. It’s like a reward for your time, skills, or effort, and the more you work, the more you can earn!
What Is Debt?
Debt is when someone borrows money and promises to pay it back later. Imagine if you want to buy a toy but don’t have enough money. You can ask a parent or friend for help. They give you the money, and you agree to pay them back later, maybe with your allowance. This is debt! It can be helpful for getting things you need now, but it’s important to be responsible and pay it back on time. If you don’t, you might have to pay extra or lose trust from the person who lent you the money.
What Is Budget?
A budget is a plan that helps you manage your money. It’s like making a list of how you want to spend your money each month. First, you write down how much money you have, like from your allowance or gifts. Then, you decide how much to spend on things you want, like toys or snacks, and how much to save for later. A budget helps you keep track of your money, so you don’t run out. It teaches you to make good choices, making sure you have enough for what you need while still having fun!
What Is Financial Responsibility?
Financial responsibility means making smart choices about how to earn, spend, save, and share money. It involves understanding the value of money and knowing how to use it wisely. Being financially responsible means sticking to a budget, paying bills on time, and avoiding unnecessary debt. It also includes saving for future goals, like buying a toy or planning for emergencies. When you are financially responsible, you make decisions that help you reach your goals while ensuring you can cover your needs. Overall, it’s about being careful and thoughtful with your money to secure a better future.
What Is Insurance?
Insurance is a financial arrangement that provides protection against potential losses or damages. It involves an agreement between an individual or entity and an insurance company, where the insured pays a premium in exchange for coverage. In the event of a specified risk such as accidents, health issues, or property damage the insurance company compensates the insured for the incurred loss, either partially or fully, depending on the policy terms. This mechanism helps individuals and businesses manage financial risks, providing peace of mind and security against unforeseen circumstances.
What Is Living Within Your Means?
Living within your means refers to the practice of managing your finances in a way that ensures your expenses do not exceed your income. This approach encourages individuals to prioritize essential needs over wants, create a budget, and avoid excessive debt. By tracking spending and saving, you can achieve financial stability and security. Living within your means fosters responsible financial habits, reduces stress related to money, and enables you to build savings for future goals. It promotes a balanced lifestyle where financial decisions are made thoughtfully, leading to long-term economic well-being.
What Is A Bank?
A bank is a financial institution that accepts deposits from individuals and businesses, providing a secure place to store money. In return for deposits, banks offer various services, including savings and checking accounts, loans, mortgages, and investment products. Banks earn revenue by lending out deposited funds at higher interest rates than they pay on deposits. They also facilitate financial transactions, such as payments and money transfers. Additionally, banks play a crucial role in the economy by providing credit, promoting savings, and contributing to financial stability. Regulatory frameworks govern banks to protect consumers and ensure economic integrity.
What Is Charity?
Charity is the act of helping others who are in need, often through donations of money, time, or goods. For kids, it means being kind and sharing what they have with those less fortunate. Charity can involve giving food, clothes, or toys to those who need them, volunteering at shelters, or raising money for a good cause. It teaches important values like empathy, generosity, and social responsibility. Kids can participate in charity by organizing events, helping their community, or even donating their allowance. Overall, charity is about making the world a better place by caring for others.
What Is Financial Health?
Financial health means taking care of your money in a smart way so you can feel safe and secure. It involves having enough money to buy the things you need, like food and clothes, and saving for things you want, like toys or games. Good financial health means spending wisely, not borrowing too much, and having a plan for your money. It also includes saving for the future and knowing how to earn money, like doing chores or selling lemonade. When you manage your money well, you can enjoy life more and be ready for surprises, like needing to buy a new bike!
What Is Real Estate?
Real estate is about land and buildings. It includes homes where people live, like houses and apartments, and places where businesses operate, like stores and offices. When someone buys a piece of real estate, they own that land and everything on it. People can also rent real estate, which means they pay to use a place without owning it. Real estate can be a good way to invest money because its value can increase over time. Understanding real estate helps you learn about how people buy, sell, and live in different spaces, and it plays an important role in our communities.
What Is Etiquette?
Etiquette is a set of rules and manners that helps people behave nicely with each other. It teaches us how to show respect, kindness, and consideration in different situations, like at home, school, or in public. Good etiquette includes saying “please” and “thank you,” listening when others are speaking, and being polite during conversations. It also means following rules, like raising your hand in class or using indoor voices. Practicing etiquette helps everyone feel comfortable and happy. When we use good manners, we make our world friendlier and show that we care about others’ feelings.
What Is Loan?
A loan is money that someone borrows from a bank or another person, which they promise to pay back later. When you get a loan, you might need it for something important, like buying a car or paying for college. The person who lends the money usually charges extra, called interest, which is like a fee for borrowing. It’s important to pay back the loan on time so you don’t owe too much money later. Loans can help people get what they need now, but it’s essential to use them wisely and make sure you can pay them back.
What Is Invest Money?
To invest means to use your money to buy something with the hope that it will grow in value or help you earn more money in the future. For example, you might buy a toy that you think will be worth more later, or put your allowance into a savings account that earns interest. Investing can also mean buying shares of a company, which gives you a small part of that company. It’s important to learn about investing because it can help you reach big goals, like saving for a bike or college, by making your money work for you over time.
What Is Cryptocurrency?
Cryptocurrency is a type of digital money that exists only online. Unlike coins or bills, cryptocurrencies don’t have a physical form and are used for buying things or trading on the internet. They work using a technology called blockchain, which is like a secure online record book that keeps track of all transactions. Bitcoin is one of the most well-known cryptocurrencies. People like cryptocurrencies because they can be sent easily, and some believe their value will increase over time. However, it’s important to learn carefully about them, as their value can change quickly and they are different from regular money.
What Are Assets And Liabilities?
Assets and liabilities are two important ideas about money. Assets are things you own that have value, like toys, a bike, or savings in a bank. They can help you in the future because you can sell them or use them to make money. On the other hand, liabilities are things you owe, like if you borrowed money for a new video game or have to pay for a toy later. Understanding the difference helps you manage your money better. Good financial health means having more assets than liabilities, which can help you save and reach your goals, like buying something special!
What Is Financial Planning?
Financial planning is making a plan for how to use your money wisely. It involves setting goals, like saving for a new toy or a video game, and figuring out how to reach those goals. First, you look at how much money you have and how much you earn, like from chores or allowances. Then, you decide how much to save and how much to spend. A good financial plan helps you avoid wasting money and prepares you for unexpected expenses. By planning, you can enjoy the things you want now and be ready for bigger things in the future, like college!
What Is Emergency Funds?
An emergency fund is money that you save for unexpected situations or emergencies, like if your bike breaks and needs to be fixed or if you need to buy something important quickly. It’s like having a safety net to help you when something surprising happens. To build an emergency fund, you can save a little bit of your allowance or birthday money regularly. This way, when an unexpected expense comes up, you won’t have to worry about not having enough money. Having an emergency fund helps you feel more secure and ready for surprises in life!
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