The Financial Guide
for Children: Five- and six-year-olds - continued

Introduction

This booklet is intended for parents of five- and six-year-olds. Children's attitudes toward money develop very early. Habits established as young as five years old may influence how people manage money their entire lives.

Your own money management plays an important role in the relationship your child will have with money. Young children learn a lot by watching their parents. Parents should encourage them to handle money and should emphasize its worth. Remember that five- and six-year-olds are more interested in what money can buy than in money itself.

It's also important to remember to keep explanations simple and clear. Stress basic concepts (e.g. a loonie is worth more than a dime). Generally, children this age are able to count to 10 and have a basic knowledge of numbers and quantities. They also have a relatively simple understanding of time. They understand the concepts of morning, afternoon, night, day, later, after, during, tomorrow, yesterday and today. On the other hand, an expression like "next month" is not very meaningful to them.

To take advantage of your children's emerging skills, give them clear directions and some basic responsibilities (ask them to count out your change after a shopping trip, for example). Ask questions to see how much your child has learned and retained. Patience on your part will make it easier for your child to grasp information. Children learn through their senses, i.e., by touching, seeing, manipulating objects, playing with toys, and listening to stories or talking. Games and stories are excellent ways to help them understand certain concepts.

Becoming acquainted with money

Five- and six-year-olds are often mostly interested in the different shapes and colours of money. Let them handle different bills and coins and talk to them about how they differ and what they are worth. Use simple examples like "this loonie can buy two apples".

Look at the series of activities in this kit. They will help your children understand basic money concepts and will feed their curiosity. These activities can also help you instil your financial values in your children before they are influenced by mass media and friends. You are their first teacher, and the best model for them to follow.

Learning to save

In a world where consumption and materialism are glorified, it's never too early to encourage children to learn to save. Giving your children an allowance can help teach about saving. Bottom line — it's important to teach them good habits before they have a chance to pick up bad ones.

The value of money

Children become familiar with money at a very early age. They see you use it almost daily. Introduce your kids to money and show them its different shapes and values. Of course, every child learns at his or her own pace. Choose what's appropriate for your children.

Most kids are easily distracted, so make the activity interesting, interactive, animated and colourful in order to grab their attention and keep it. Simplify things as much as possible, and be enthusiastic when working through the activities in this kit.

Recognizing different forms of money

• Let your child handle real money.
• Discuss the appearance of each coin and bill.
• Talk about the material that is used to make money (copper for pennies, nickel for nickels, dimes and quarters, bronze for one-dollar coins [loonies] and nickel and bronze for two-dollar coins [twonies]). Bills are made out of 100 percent cotton as of 2004, but it may be easier for kids to understand if you tell them that they are made out of very strong paper.
• Explain the value of each coin and bill.
• Point out the images on either side of the coins and bills.
• Establish the differences between the animals and illustrations on each coin and bill.
• Compare the weight and size (thickness and diameter) of each coin and bill.
• Discuss the dates and the age of each coin and bill.

Visit the Bank of Canada Web site at www.bankofcanada.ca/en/banknotes/general/character/index.html to see different bills, and the Royal Canadian Mint site at www.mint.ca to see different coins.

Suggested activity: tracing coins Take a blank sheet of paper and a pencil and trace different coins by placing each one under the paper and lightly drawing over it with a pencil. The design of the coin will stand out. Ask your child to identify the coins copied.

Coin images© courtesy of the Royal Canadian Mint

Matching numbers with money

It's important for children to match coins and bills with their actual value so they can associate them with corresponding price tags. Ask your child to read price tags at the store. Performing concrete tasks will make it easier for your child to learn the value of money. Be sure to introduce the cent symbol (¢) and the dollar sign ($).

Suggested activity: matching game Cut out the cards below. (See page A in the middle of this booklet) Ask your child to colour the coins in the appropriate colour. Ask your child to match the cards with coins to the cards with values.

	1¢ or $0.01
	5¢ or $0.05
	10¢ or $0.10
	25¢ or $0.25
	$1 or $1.00
	$2 or $2.00

Coin images© courtesy of the Royal Canadian Mint

Canadian Coins

Coin images© courtesy of the Royal Canadian Mint

Suggested activity: puzzle Cut out the following puzzle pieces. (See page E in the middle of this booklet) Mix up the pieces and ask your child to put them back together correctly.

Coin images© courtesy of the Royal Canadian Mint

Counting money

At this age, children can start to learn how many coins of a certain value it takes to equal another coin (e.g. 4 x 25¢ = $1). Use very concrete examples with real money. Letting them handle coins and bills is a good way of helping them learn. Ask them questions and try to make a game out of it.

Suggested activity: association game Cut out the cards below. (See pages G and I in the middle of this booklet) Ask your child to form pairs with the cards. Each pair must have the same value but the cards must not be identical.

Coin images© courtesy of the Royal Canadian Mint

Suggested activity: price tag game Cut out the cards listed below. (See pages K, M and O in the middle of this booklet) Ask your child to match the price tags to the cards with the coins. You can also scribble in your own prices on the blank tags (page O) and ask your child to give you the exact amount in coins, using the detachable coins on page C in the middle of this booklet.

Coin images© courtesy of the Royal Canadian Mint

Your financial values

Children learn a lot by watching and imitating their parents. Actions speak louder than words. Setting a good example with your financial habits will help your child. For example, when shopping, explain to your child why you are choosing a less expensive product that's similar to another product. This will help introduce the concept of different values for different products.

Kids quickly spot inconsistencies, so it's important to always practise what you preach. Take some time to think honestly about your financial values and habits.

• Is money used as a reward or a means of control in your family?
• Do you place too much importance on material goods?
• Do you tend to compare your family's house and possessions with those of your neighbours?
• Do you place more importance on the price of a gift than on the act of giving?

Are we rich?

Five- and six-year-olds don't usually know how much their parents make, nor do they have any concept of how much money a family needs to live. They might ask if you're rich. You can explain that some people barely have enough money to buy food and clothing, while others are able to buy things they want in addition to what they need. This can lead to a discussion of what your children have, as opposed to what they don't have.

Depending on your personal values, you might also want to explain to your children that money matters are private and that you don't want them talking about private matters outside your home.

Suggested activity: the memory game This game requires two or more players. The objective is to match as many identical elements as possible. You should have twenty-four game cards. Place the cards upside down to form a square. The players will not be able to see the coins printed on them. The side marked "Memory Game" will be facing up. Players take turns. The first player will turn over two cards so that all players can see them. If the two cards are identical, he or she sets them aside and takes another turn. If the two cards are not identical, the player must turn them back over (after showing them to all players) so that the coins are no longer showing. Players will try to remember the cards so when it is their turn to turn two over, they will recall the card they need to make a match. The winner is the player who collects the most pairs.

Coin images© courtesy of the Royal Canadian Mint