Needs and Wants s1

Foundation to Year 2: Ava makes a difference

Parent/Carer notes

Needs and wants Pay the price Goods and services Money match

Overview MoneySmart Teaching is an initiative of the Australian Securities and Investments Commission (ASIC) to build the consumer and financial literacy knowledge, skills, values and behaviours of young Australians.

Teaching children about money from an early and buying items in a supermarket. All activities offer age is critical to setting up good foundations for different levels to cater for the range of knowledge the future. and understandings of this age group. As parents and carers, you are the first teachers Each activity takes approximately 15 minutes to of your children. These digital activities have complete - this may vary depending on whether been developed to provide you with practical children are undertaking them with an adult or as a and engaging tools to help your children self guided activity. Activities can be used on an develop the consumer and financial literacy interactive smartboard, computer or iPad. All skills they need to make confident and informed activities include automated feedback. choices throughout their lives. As some concepts such as earning ‘pocket money’ may not suit your family’s circumstances, we recommend you preview the activities prior to Getting started introducing them to your child. These four digital activities are designed for The activities are based on the interactive book ‘Ava Foundation to Year 2 primary school aged children makes a difference’. The book can be accessed and support the development of consumer and online and is free from the MoneySmart Teaching financial literacy skills such as distinguishing between Resource centre. needs and wants, understanding the difference Besides these Parent Notes the front page of each between goods and services, recognising and using activity provides links to: Australian currency and understanding the importance of comparing and contrasting consumer ► Teacher notes products and price. ► Curriculum mapping Each activity features colourful graphics and audio ► End user specifications and provides children with the opportunity to develop consumer and financial literacy skills in a fun way ► Contact details using the familiar game of matching memory cards to ► Copyright information learn about Australian notes and coins and through ‘real life’ situations such as getting ready for school

www.teaching.moneysmart.gov.au 1 Parent/Carer notes

What are the activities? requires students to match item value with the correct money from two multiple coin options. Goods and services Level 3: Comparing price. Students assist the character ‘Ava’ to compare like items on a shopping Level 1: Sorting goods and services. Students select list and select the cheapest option. Students then an everyday item such as a soccer ball or service select the combination of coins required to pay the activity such as bus driving, and categorise it as a total shopping bill good or service. Level 2: Identifying services. Students help the How you can support your child’s character ‘Ava’ to complete a service to earn pocket consumer and financial literacy money. learning at home Level 3: Earning money for services. ‘Ava’ wants to A strong education for your child must include earn $10 pocket money. Students choose three consumer and financial literacy. Our children are services to help her buy a book. growing up in a rapidly changing world which deliberately targets them as consumers from a young Needs and wants age through powerful, subliminal advertising and Level 1. Identifying needs and wants. Students help marketing. Young people need to learn from their the character ‘Flynn’ to get ready for school by parents from an early age how to develop discerning helping to select what he ‘needs’ rather than the skills and behaviours across a range of consumer things he ‘wants’. and financial real world contexts. Level 2. Comparing items. Students help the One of the simplest ways of encouraging financial character ‘Flynn’ buy a new top at a good price. wellbeing and an independent and secure future is to encourage children to learn to plan, save, spend, Money match invest, donate and know the difference between what they really need, and what they want as they grow. Level 1: Matching coins. In a memory style game, Many schools across Australia are now incorporating students select two matching images of five, ten, and consumer and financial literacy learning into their twenty cent coins. curriculum to help make the next generation more Level 2: Matching coins. In a memory style game, financially aware consumers. students select two matching images of five, ten, There are many activities you can do at home with twenty, fifty cents and one and two dollar coins. your children to help reinforce what and how your Level 3: Matching coins and notes. In a memory style child is learning. Here are some initial suggestions: game, students select two matching images of ten, ► Give your child an allowance and discuss splitting twenty, fifty cents and one, two dollar coins as well as it – some to spend and some to save or put away notes. to achieve a small goal. A good starting point Level 4: Matching values. In a memory style game, could be a spending allowance of 50% and 50% students match values such as five x twenty cents set aside in a bank account. equals a one dollar coin. ► Open a bank account in your child’s name and regularly add funds to it. Discuss this whole Pay the price process with your child. Encourage your child to Level 1: Choosing correct money. The character ‘Ava’ watch savings grow over time. An online account needs to buy items from a shopping list. This activity may be the simplest way to achieve this while requires students to match item value with the correct demonstrating that money is no longer always money from two single coin options visible. As the child gets older they can investigate which financial institutions and accounts pay the Level 2: Choosing correct money. The character ‘Ava’ most interest and have the lowest fees. needs to buy items from a shopping list. This activity

www.teaching.moneysmart.gov.au 2 Parent/Carer notes

► Talk about financial goals. What do they want? to make them look appealing/tempting? Do we How much should be saved each week for this really need what we see? Discuss impulse buying target? How long will it take to achieve with a and what happens to our budget if we constantly range of savings plans? buy things that are outside our budget. Is it really as good as it looks, or is it the idea or the image ► Talk about budgets – explain how your income rather than the value of the product that is being needs to meet your needs and work on a ‘pretend’ bought? household budget with your child. You could explain how much it costs each week to provide food for the family and as they get older the utility Further information costs of electricity, gas and water. Over time you can use the utilities to actively engage children in For Parents/Carers as teachers: environmental energy saving solutions for the ► Read the Teacher notes that you can find house with the incentive of sharing the dollar attached to these activities. savings. ► Discuss the value of money – what are things ► Go through the activities with your child at worth? Is quality worth paying for? How much teaching.moneysmart.gov.au/resource-centre. does it cost to buy the groceries each week? How ► Visit teaching.moneysmart.gov.au and view expert much does it cost to run a smart phone and Internet? How much can you buy with $20 in a videos or read more about ASIC’s MoneySmart supermarket? Teaching initiative. ► Set good examples – Demonstrate to your child ► Familiarise yourself with ‘Making Cents’ -an that you’re willing to put aside personal wants in excellent section dedicated to parents at order to meet the needs of the family and others. teaching.moneysmart.gov.au. Talk to your child about needs versus wants when spending especially when they are asking for For Parents/Carers for your personal money things. Do they really need it or is it something management: they can live without? ► ASIC’s MoneySmart website is a free consumer ► What are the many ways that individuals and site that helps you to make the most of your households receive income? It is good for children money. It has calculators, tools and tips. For to understand that for adults and households there are many sources of income, however, income is simple guidance you can trust, visit a finite resource. Parents and carers may choose www.moneysmart.gov.au or call 1300 300 630. to give their children pocket money which can act as a regular income and learning tool. If you are able, consider offering your child the opportunity ASIC’s MoneySmart Teaching initiative builds to earn more from additional jobs. the consumer and financial literacy capabilities of ► How is money spent? Does spending from a Australian school students by developing plastic card mean that budgets can be stretched? students’ knowledge, skills, values and Today’s children don’t often see adults spending behaviours to enable them to make confident, cash. You buy your groceries using a debit or informed consumer choices and responsible credit card and you get cash out with the receipt. financial decisions that are essential to their So perhaps your child observes you handing over future financial wellbeing. To view the a card, and receiving cash back from the MoneySmart Teaching Primary and Secondary salesperson. At home you pay your bills and make packages and all the online and digital resources purchases online. Money is much more accessible visit www.teaching.moneysmart.gov.au than it was and is almost invisible. You might want to discuss that you need to pay back borrowed money and how that costs more than saving for what you want. ► What is marketing and what do they need to be aware of? Talk to your child about how things look glossier and bigger and better on television or in catalogues because marketing people work hard