One of my children is 5-years old and he is getting used to the concept of money. And it is confusing.

Why so many different currencies?

Who determines the price?

What does expensive mean?

What does cheap mean?

Why do some people have a lot and others have none?

Why do you have to work to earn money?

Now add crypto-currencies, at it becomes even more confusing.

So here is what I did. I used Lego pieces.

First off we made a small house. We used 2 different colours, one was for him, one was for me. Each of us had to dig into the big lego box to find the coloured pieces that belonged to them. This would mimic mining.

We jointly decided on what the house would look like and which features it would (regulation).

My partner would then join and have their own colour, adding to the pool.

We could swap pieces and the colours would change then, to show change in ownership.

It isn't perfect and there are many facets which we didn't cover.

But for a 5-year old, it's a pretty good intro.

What have you done to explain it to a child?