Are you looking Eurozone?
We all know about the Euro and that it’s one of the world’s strongest currencies. Some countries have the coins they use but also use euros. Some adopted euros entirely. If you are eager to explain to your child or a nephew what Eurozone is, we will have to explain the necessary stuff to you, first. Yes, we know you probably know everything about it, but do you? It’sIt’s not wrong to revisit the essential knowledge, so we will first explain the difference between the Eurozone and EU (European Union), and then get onto the most crucial task – explaining it to a child. If you already know the difference between the two terms, you can skim through the first two paragraphs and start reading about the most important task ever. Let the games begin!
Eurozone vs EU
Many people would think it’s the same, but! There is always a “but”. While the European Union consists of countries that agreed to respect specific criteria to help each other out (in the union), the Eurozone marks places where the Euro can be used. Still, it doesn’t mean they are part of the EU. Take Norway, for example. They are not an EU member, but you can use euros (and exchange them) when visiting it. You have to meet specific rules and fulfil expectations if you want to become a member of the EU, which is not an easy job to do. Norway probably decided not to be part of something that can be limiting in some ways, but that isn’t our focus right now. What matters is that now you know the European Union and Eurozone are not the same things.
Investing in EU/Eurozone
Even investing in the Euro might be more challenging to do in the Eurozone than in the EU. There are different regulations. Often you cannot be sure if you are safe to invest if you are in a Eurozone country because no websites are acting as regulators and that can put you into a greater risk of scam. Naturally, by researching companies and brokers first, you can easily find out which one is a “safe one” and what you should avoid. If you the EU member, your primary currency is probably EUR, so you will be trading with domestic money rather than a foreign one. This can be a good thing if you prefer that way of trading, or you might decide you want to trade with an exotic one – it’s up to you. Our point is – the Eurozone, in general, will be a bit more prone to scams than specific countries that are part of the EU. Whatever the case is, do your research first.
Explaining it to a child
If you are determined to explain it to a five-year-old, the best way would be to describe it as a game rule. Draw, make it fun, but don’t drift off and forget this is something important. Naturally, it would be a bit easier to explain it to a child that started going to school, but either way, these concepts are something serious. Try to explain it lightly, but let them know the rules cannot be changed (you know kids like breaking the rules). While this is entirely up to you and how much you know your kid, let’s see what type of strategy to use. Ask them first about money in general – what they know about it, what they like and dislike, and what it’s used for. If you are not using Euro as your primary currency, ask them to explain to you enough about the currency you are using in your country (they should at least know the name, if not, teach them). Start with a simple example as a candy or a toy they want to have. It means they have to buy it using money. This is a double plus when you explain because you can explain what means to save up money as well! Anyway, now that you explained that, it’s time, to begin with, something like “We don’t have this game/toy where we live, but we can buy it in another country. This is where it can become tricky, but it doesn’t have to be. Show your five-year-old the toy and the price (that will be in euros, or aim for it to be). Now you can start explaining about the Eurozone and the EU.
Explaining Eurozone and EU as a game
Don’t use aggressive examples since your child might get the wrong impression. This is where drawing comes in handy. Even some toys (if your child hasn’t lost focus by now). As if they were playing a game, say that that country and that country (you don’t have to name them all) are a part of a guild or a team (depending what your kid likes to play). The EU team decided to make certain rules, and if upgraded enough, you can get into the team, and use the same currency as the one you need to buy the toy! If you cannot get into the team yet because you are only in their zone (Eurozone), it is okay, but you have to buy their money first and then the toy. They don’t want to be mean, so that’s why they are letting you use their money as well. They want you to have the toy, but you will have a couple of quests before the main one. If you are from an EU country, you can explain it in reverse. We can buy everything using our money, but other teams who are not part of us can complete certain tasks and have what we want to buy.
Why the explanation should be focused around this ONLY
Everything besides this can be too much for a five-year-old, even if they are ready to grasp the knowledge. They will easily confuse it, simply because they don’t care enough. They care about the game or that toy! That is why you should focus on keeping their attention and explaining it like a simple game. Once they are a bit older, you can get into more serious “rules”. Let your five-year-old think about how to buy the toy, and this will be enough to understand the difference between Eurozone and the EU.