Teaching Grade 1 Students About Money Management

Money management is a skill that is essential for success in life, yet it's one that many adults struggle with. To set children up for financial success, it's crucial to start teaching them about money management from a young age. By learning the basics of budgeting, saving, and making wise financial decisions, children can develop healthy money habits that will benefit them for years.

In this evidence-based SEL lesson, young students are introduced to the positive action of managing money. The lesson begins with an important point: money alone is not valuable. It's the things that money can buy that hold worth. Students learn how to use money to purchase necessities such as food to keep a person strong and healthy, pay rent for a warm and safe home, and provide for other essential needs. The lesson encourages students to think beyond the surface level of money and understand its potential to impact their lives positively.

To capture the students’ attention, the teacher employs the "Money Gift Card" visual aid and the “Birthday” poster during the discussion. The teacher writes “Money” and its definition on the board and asks the students to recite it together several times. This repetition helps cement the meaning of money in the students' minds and sets the foundation for the rest of the lesson.

After a short discussion, the class listens to the story of Mary, a young girl who likes having money and spending it even more. Mary's mother tries to teach her the value of careful planning and budgeting, but she stubbornly believes she just needs more money. One day, Mary wins the big sweepstakes, and suddenly, she has 10 million dollars at her disposal. She spends every last cent on extravagant purchases, but her financial euphoria quickly fades when she realizes she has nothing but debts. People she owes money to demand payment, and Mary feels helpless as she can't pay them back. Suddenly, her mother wakes her up from the vivid dream.

The story of Mary serves as a cautionary tale to the students. It highlights the dangers of reckless spending and the importance of managing money wisely. The students learn that no matter how much money they have, it can disappear quickly if they are not responsible. The story also emphasizes the importance of listening to the advice of trusted mentors, such as parents, who have their best interests at heart.

Following the story, the class discusses three positive actions that first graders can practice to manage their money. The first action is being aware of one's money, which means knowing how much money they have and where it comes from. The second action is keeping one's money in a safe place, such as a piggy bank or a wallet. This will prevent the money from getting lost or stolen. Lastly, the class discusses the importance of not taking money out to play with it. This ensures that the money stays safe and secure until it's needed for a specific purpose.

Managing money is a positive action that can bring a sense of pride and confidence. When individuals take control of their finances, they feel empowered and capable. Knowing where their money is going and how much they have allows them to make informed decisions and plan for the future.

Moreover, responsible money management practices can lead to financial security and peace of mind. When one has a budget, saves money, and avoids unnecessary expenses, they are better prepared for unexpected expenses and emergencies. This reduces the stress and anxiety that come with financial uncertainty.

In short, practicing sound money management is not only financially responsible but also emotionally rewarding. It instills a sense of self-reliance and control, providing individuals with the tools to achieve their financial goals and lead fulfilling lives.