How to Teach a Child About Capitalism
In many modern countries, capitalism is the basis of economic life, but many students don't understand its complexities. Here's how to teach a child about how that system functions.
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Instructions
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Start by defining what the word capitalism means. Capitalism is the economic force behind the United States and many other countries. It means that businesses are owned privately, rather than by the government or a collective. Profits are made and goods are distributed by individuals or companies. These entities set prices based on what the market will bear.
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Show what capitalism is with hands-on activities. Use board games to learn about capitalism. Some board games such as the Monopoly show capitalism in a broad way. Settlers of Catan by Mayfair Games offers a simplistic way of showing the basic principles behind capitalism.
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Use computer software to help introduce capitalistic ideas. Roller Coaster Tycoon by Atari and similar computer games allows kids to run their own theme parks. Some ideas fail, others succeed as the children learn how to build business.
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Teach the history of capitalism. Build a timeline of capitalism showing how it became the economic system for many nations. Show the changes the nations had to go through to acheive a capitalistic economy. Include the figures who pushed to bring capitalism to their countries.
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Visit numerous large and small businesses to show the child how each conducts their business. Ask people who work there what they think of capitalism. Interview a business owner and ask questions about capitalism and how it might affect them if we didn't live in a capitalistic economy.
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Tips & Warnings
Use small words for younger kids. Words such as 'laissez faire' mean little to a child who can barely pronounce the word, let alone understand it. Use simple terms to teach capitalism.
Don't teach only the good or only the bad about capitalism. Identify all aspects and let your children form their own opinions.
