Simple Ways to Teach Your Children About Economics

Posted: 27th September 2018 10:46

It is now more commonplace for children to be learning about economics at school than ever before, and for good reason. With the 2008 Global Financial Crisis just behind us, it’s unsurprising that educators are keen for the next generation to have a somewhat basic understanding of economics. After all, its principles underpin our world and have an impact on everybody.

When contrasted with other subjects such as mathematics or science, subjects which whilst being useful to learn about are only beneficial for kids who want to go into these fields as careers, it is easy to see why economics is a subject which should be on every school curriculum.

Some children struggle with it, however, despite it being quite a simple subject when taught at a basic school level. There are plenty of things you can do at home, though, to teach your children about economics in context, as well as resources which can provide economics homework help.

#1: Encourage Them to Play the Stock Market

We’re not saying you need to open a live trading account and spend real money! There are lots of free resources online such as How the Market Works, which is a simulation of the real market. Using a virtual stock and currency exchange, your children can learn about the markets in action by performing simulated trades.

#2: Pay Your Children

Instead of providing an allowance which they get for nothing, pay them in return for their chores. Whilst they may not like this idea at first, paying your children in return for their labor teaches them about how one of the most basic economic principles works: money in return for skills and labor.

#3: Discuss How Prices Have Changed Over Time

This is something which could get the grandparents involved and is a perfect way to discuss how purchasing power has changed over time due to inflation. For instance, one dollar was worth so much more during the 1950s compared to today, and by having your children ask their grandparents what one dollar would have got them back in the day compared to now, they begin to learn how the value of money changes over time in response to inflation and other factors.

#4: Start a Side-Business

It doesn’t need to be anything major but appealing to a child’s more entrepreneurial side is one of the best ways to teach economics. Head down to a thrift store or garage sale and try to scoop up some bargains which you can re-sell on the likes of eBay or Etsy later, or sew and craft things to sell online. The internet is any wannabe entrepreneur’s dream and there are tons of things which you can do.

Helping your children learn about economics and the principles which shape our world doesn’t need to be a ‘sit down and read from a textbook’ job. By going out into the real world and seeing economics in action, your child’s knowledge will be cemented and they will find the subject a lot easier to understand.