Hi there. I want to propose a simple money and math exercise for kids with the use of grocery flyers. Online versions of grocery flyers can do when physical grocery flyers are not available.
Sections
- The Importance Of Money Management To Kids
- A Budget As A (Math) Optimization Tool
- The Grocery Flyers Exercise
- Learning Objectives
- Notes
The Importance Of Money Management To Kids
Even though money (and currency) is all around us, there could be more materials out there focused on money management and some mathematics behind it. Money should be highly valued as it is a symbol of time and labour. It is a good idea to teach the younger ones about money in order for them to develop good financial habits.
A Budget As A (Math) Optimization Tool
A budget is a financial plan where a certain amount of funds is used for spending. Budgets are used for resource allocation and to try to prevent overspending on stuff you don't need.
From a mathematics angle, you can look at budgets as a mathematical optimization tool. The budgeter tries to do his/her best given the limited resources available. In this exercise, the budget is based on a small amount of money for the grocery store.
The Grocery Flyer Exercise
For the exercise, you will need a physical or digital version of a grocery flyer. Have the child/children purchase items such that it is under an amount such as $10 CAD. (Amounts can be varied.) Make sure that the prices of the items are added together (without the use of a caclulator). An additional task would be to ask how many change would be given back if you paid with more money that the prices of the items.
Example
I have included a screenshot image of part of a grocery flyer. The Loblaws grocery store is located in Toronto. Given a budget of $10 CAD, you can buy:
- One of Liberté Organic Yogourt (top middle) at $3.49
- One of Nature's Path Gluten-Free Cereal (top left) at $3.99
The total of the items (before tax) come to $3.49 + $3.99 = $7.48.
Assuming no tax, the amount of change from $10 would be $10 - $7.48 = $2.52.
With the $10 CAD budget you are not able to purchase the CLIF energy bars at $14 nor the Extra Virgin Olive Oil at $19.99.
Learning Objectives
This exercise will allow children to practice with addition, subtraction (and maybe multiplication). They will see how math can be applied outside of school.
Children will practice their decision making skills and informally learn the economics concept of opportunity cost. An opportunity cost represents an alternative given up when a decision is made. [Investopedia.com reference]
Kids will quickly learn that some items cost more than others and that you cannot get everything. The value of money is a key concept for kids to know, respect and understand.
This exercise may not make your kids rich but it will help them be mindful of spending.
Notes
Budget amounts for the exercise can be altered. Smaller amounts would make things more difficult while larger amounts can make things easier as there are more choices.
Instead of grocery flyers, you can use flyers from drug stores, toy stores or even an IKEA catalogue (with a bigger budget).
A slight variation would be calculating prices from a bulk store. As an example, if dried raisins are at $1.49 a pound and you have 2.5 pounds or dried raisins, how much would those cost?
In here, I am using Canadian dollars. You would use your local currency and budget amounts would vary.