The episode was based around finding out what kids know about money, and what they think about the concept of money. What the know can affect them for the rest of their lives.
Although claiming they had a good understanding of money, the younger kids seemed to struggle with questions such as:
• Where does money comes from?
• How do people make
• How does money get onto the card?
• How does the bank get money?
Nigel Latta got them to play a little game as some research. He asked them to place an emoji that they would use to represent 'MONEY' as if it was a person. Some of the kids showed an understanding of balance and wealth, by mentioning how it is bad in some respects as it makes a difference between 'rich and poor families'
They are already beginning to form strong opinions of money. Important questions that Nigel Latta asked are:
• "If you don't start talking to your kids about money, they'll just start making stuff up. So when is the right time to start talking to them about money?
• "When we give our kids pocket money, it's one of the first times that children have to try and get their heads around the idea of money, which is why we often get so stressed trying to figure out how to make them better with money"
There were some super interesting experiments that Nigel Latta conducted, playful ways on gaining research into how kids value and spend money.
There was one super cool way of showing the effects of saving through compound interest, where they used big containers of water being filled up to show this. The young girl would save '$10' per week, while Nigel would then go and pour in equivalent to 8% of her interest each year. She stopped 'saving' at the age of 20, after depositing only $520 a year, and by the time she was 65, she had made around $500,000 because of the addition of compound interest.
Another one was to see how kids are tempted by money. Each kid was given $5 to run around the fair and play on bouncy castles, get popcorn, balloon animals etc. However, if they decided against it, Nigel Latta would double whatever they had saved. So if the kid didn't spend anything, and had $5 left, they'd receive another $5. It was quite a cool way of showing them the value of saving and how saving money can actually lead to earning more money on top of that.
- Blake
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