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Finance Education for Kids 8-15

The document provides a finance education curriculum for kids aged 8-15, created by IIM Calcutta alumni. It covers fundamental concepts such as money, income, expenses, scarcity, and opportunity cost, along with definitions of goods and services. The curriculum aims to equip children with essential financial literacy skills.

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5 views6 pages

Finance Education for Kids 8-15

The document provides a finance education curriculum for kids aged 8-15, created by IIM Calcutta alumni. It covers fundamental concepts such as money, income, expenses, scarcity, and opportunity cost, along with definitions of goods and services. The curriculum aims to equip children with essential financial literacy skills.

Uploaded by

gchembattammal560
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

CLASS

JOURNAL

Level 3
Session 1

FINANCE EDUCATION FOR KIDS OF AGE 8-15


CREATED BY IIM CALCUTTA ALUMNI
Money- Something which is used by people to
buy/purchase things. Simply, a tool using which one
can get different goods and services.

Fiat Money - Fiat money is a currency (bank notes and


coins), which has value only because a government
says so, and because the people using it maintain faith
in it having value.

Goods - A physical item that can be bought, touched,


and used. For e.g.- refrigerator, car, etc.

Services - The action done for people who pay for the
service. For e.g.- Cleaning services, haircut, etc.
Barter System - Trading services or goods with
another person when there is no money involved. This
type of exchange was relied upon by early civilizations.

Income - Money (or some equivalent value) that an


individual or business receives, usually in return for
providing a good or service. For e.g.- Salary received,
profit earned, etc.
Expense - An outflow of money to another person to
pay for a Good, or service. For example, rent, tuition
fee, buying food, etc.

Fixed Expense - Expenses which are fixed for every


month. For e.g.- Rent, Insurance premium, etc.

Variable Expense - Expenses that changes over a


period of time. For e.g.- Groceries expenses, bills,
etc.

Periodic Expense- Expenses that occur in


predictable amounts and intervals, but are much
less frequent. For e.g.- Car servicing, visit to dentist,
etc.

Discretionary Expense- Expenses for Goods and


Services which are non essential or more expensive
than necessary. For e.g.- vacations, meals at
restaurants, etc.

What is scarcity?
Scarcity is the condition of not being able to have all of
the goods and services one wants.
It exists because human wants for goods and services
exceed the quantity of goods and services that can be
produced using all available resources.
What is Opportunity Cost ?
Whenever a choice is made, something is given up.
The opportunity cost of a choice is the value of the best
alternative given up.
Opportunity cost is the value of the next-best
alternative when a decision is made;
it's what is given up.

Illustration: Opportunity Cost


A student has to decide between studying for their final
exam or enjoying a movie with friends.
The opportunity cost of studying for the final exam is
foregoing movie with friends, while the opportunity
cost of going out with friends is the benefit of studying
for final exam.
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