How to Explain Where Money Comes From (With Storytelling & Role-Play!)
Money Doesn’t Grow on Trees… Or Does It?
“Can’t You Just Tap Your Card?”
Sound familiar?
To kids, money often seems like magic. You tap a plastic card, and poof: snacks, toys, and new shoes appear. But understanding where money comes from (and how it's earned) is a key part of building lifelong financial smarts.
The good news? You don’t need to bust out spreadsheets or give them an economics lecture. Instead, make it a story, or better yet, a game.
📖 Try This: Tell a Story About Earning
Create a simple character-driven tale where money is earned through effort, not just given.
Example Story: “Tilly and the Lemonade Empire”
Tilly wants a sparkly unicorn backpack. Her mum explains they can’t just buy one, they need to save for it. So Tilly sets up a lemonade stand with help from her little brother Max. They mix, pour, and sell cups all weekend. By the end, they count their coins and realise they have earned enough.
👉 Moral of the story: Money is something you get in exchange for doing something useful. And saving makes big dreams possible.
Make it interactive:
Ask, “What could YOU sell if you wanted to earn money?”
🎭 Or This: Play ‘Work & Earn’ Together
Role-play is gold for younger kids. Use dress-ups, toys, or just your imagination.
Scenario 1: The Ice Cream Shop
Let your child be the ice cream vendor. You play the customer. They make pretend cones and collect toy money. Then switch roles! Talk about how the worker gets paid for each cone they scoop.
Scenario 2: The Busy Builders
You’re running a construction crew (Lego time!). Each building gets “paid” in coins. Use real coins or make your own with paper. Tidy up at the end? More money earned!
👉 Reinforce the idea that money doesn’t just appear. It comes from effort, time, and helping others.
🧠 What They’re Really Learning
Effort = reward: You work, you earn.
Money is a tool, not a toy. It helps you buy things, but only when you have it.
Delayed gratification: Sometimes you have to wait and save.
These lessons are foundational. They’ll shape how your child views work, spending, and even their future career.
💬 Real-Life Chats That Help
Keep it casual but clear. Some convo starters:
“What do you think I do to earn money?”
“Why do we go to work?”
“What job would you want to do to earn money?”
Bring them into the real world, too:
At the supermarket: “We’re buying groceries with money I earned at work.”
When you get paid: “Today’s payday! That means I got money for the work I did last week.”
💡 Bonus Idea: The 'Earn & Spend' Jar System
Use 3 jars:
Earned – where their coins go after they complete a job
Spend – for small treats or toys
Save – for bigger goals
They’ll physically see how earning connects to spending, and how saving feels powerful.
🌟 Final Tip
Keep the tone light. Use their interests. Dinosaurs? Great—, make it a fossil dig job. Princesses? She runs her own royal bakery.
Talking about money doesn’t have to be awkward, it can be adventurous, creative, and even fun. When kids understand where money really comes from, they’re already on their way to becoming financially confident adults. 💪
