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A Guide to Money

It is often said that money is what makes the world go round. Everything we do, from buying food and paying bills to bigger things like getting a car or home, needs money. In the United States, we use what is called U.S. currency, which consists of both paper money (dollars) and coins. Each piece of money represents a certain amount, also known as a denomination. Whether you are earning and saving money or just learning about how to count money, it is important to understand the many ins and outs of money and how it works.

Money

All of the different paper money used features a different United States president and is worth a different dollar amount. There are also many coins ranging from pennies to nickels, dimes, quarters, half-dollars, and dollars. Each coin is worth a different amount of money. There are also coins worth a dollar, but people don't use them as much as paper dollars. Many people collect dollar coins for their beauty and uniqueness. Criminals are constantly trying to make fake money, which is called counterfeit money. The government is constantly doing new things to help prevent this by adding new features to money like watermarking and inserting strips into the money that cannot be copied or faked.

Counting Money

Once you know what the different types of money look like, you need to learn how to count money. You will need to learn the values of each piece of money as well as basic addition and subtraction so that you can pay for things and give or get change back. This is a very important skill because as an adult, we use money almost every single day. Some jobs also require people to be able to quickly count money, such as if you're a bank teller or a cashier. The best way to learn how to count money is through practice. Over time, you will be able to quickly count your money to pay for something and count your change.

Earning Money

Most adults earn their own money by having a job and getting paid to do work. As a kid, it may seem a bit harder to earn money, but there are ways you can do it if you ask your parents. See if you can help out around the house and earn a weekly allowance. As you get older, you might be able to earn money by helping neighbors with their pets or even by babysitting. Other good ways to earn money are to sell lemonade or have a garage sale.

Saving Money

Once you have earned some money, it is time to think about what to do with it. It will be very tempting to buy that new video game or spend it all on candy, but by saving your money, it will add up to much more in the long run. If there is something big you want, you can save your money up until you have enough to buy it. The most common way to save your money is to just put it away in a piggy bank or hide it under the bed. But adults have other ways they save, such as getting a savings account with their bank, opening an IRA, or putting their money in bonds. Talk to your parents and see if they'd be willing to let you start your own savings account. This will give you a good idea of what it is like to put your money away and watch it grow over time.

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