Economic Concepts: Understanding in Elementary Students
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Understanding of Economic Concepts in Elementary Students
In understanding the functioning of the economy, aspects such as production and distribution of goods and the role of money are investigated. These aspects were investigated following Piagetian methods to identify the successive stages through which the students pass.
Money
Children come into contact with money in their domestic space but have an inadequate understanding of its origin until 14 years of age.
- Before 6 years, they have no clear idea about the origin of money.
- Between 7 and 9 years, they handle simple and contradictory ideas about the origin of money.
- Between 10 and 14, the idea that money is obtained from work will strengthen.
- After 14 years, students are able to understand economic processes as part of the social system.
Buying, Selling, and Profit
Buying products in a store is the economic activity with which children come into contact at younger ages. However, understanding the mechanisms of sale, the price of the goods, and the benefit obtained from this activity is not easy for students before 12-13 years of age.
- Prior to six years, the activity of buying and selling in stores appears as a ritual.
- Between 7 and 9 years, they start to show ideas on customer payment in exchange for the products they buy. They often believe that the shopkeeper sells the product at the same price as buying or less.
- Between 10 and 14 years, they began to articulate more consistent ideas about paying customers for the products they buy. They also understand that the seller uses the money it receives for his family to live, to pay employees, etc.
- After 14 years, students can prove that the shopkeeper has to sell the product at a higher price than the purchase. The idea of profit appears as a justification of the activity in stores.
The Price of Goods
The factors that influence the price of goods are too complex for children.
One should take into account the costs of production, transmission, distribution, and sale.
- Up to 6 years, children believe that the price is a quality of the goods and that these have a fixed value.
- Between 7 and 9 years, they begin to see the price or value of items based on their income or the time it takes to manufacture.
- Between 10 and 14 years, children tend to construe that the price of goods is determined by the amount of material and time spent in production.
Banks
The understanding of economic operation involves not only concepts such as money, price, and purchase but also understanding the role of institutions such as banks or government and their functions. Studies on the understanding of the role of banks by young people:
- Before 6 years, banks are seen as charities.
- 7-9, a place where money can be securely stored, customers receive the same money you deposited.
- 10-14, students recognize the concept of interest. It is usually after age 14 when students understand logically banking profit.
General Ideas on Understanding Economic Concepts:
- Students seem to pass through a series of stages over which they are improving their understanding of economic concepts.
- Students seem to dominate the economic concepts related to the exchange of goods before those that have to do with production and profit.
- The understanding of economic concepts has difficulties arising from cognitive factors as well as socio-moral ones.