EP5: The Difference Between Price and Value (Jimin's Bazaar Preparation)

2024. 9. 2. 23:26우리 아이와 나누는 금융 이야기

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Financial Education with Our Child EP5: The Difference Between Price and Value | Korea Bond Ocean

Financial Education with Our Child EP5: The Difference Between Price and Value

Jimin's Bazaar Preparation

"Mom, Mom! We have a big problem!" Jimin rushed into the kitchen, out of breath.

"What's wrong?" I asked, looking concerned.

"There's going to be a bazaar at school. They told us to bring something we can sell for 5,000 won, but I don't know what to bring!"

I smiled, relieved. "Oh, is that all? Don't worry, let's think about it together."

Jimin ran to her room and came back with an armful of items: an old doll, a set of crayons from last year, a piggy bank her grandmother had given her, a sticker book, and a few children's books.

"Which of these do you think is worth 5,000 won?" Jimin asked.

I looked at the items and said, "Well, what do you think?"

Jimin confidently replied, "My sticker book! It's my favorite. It must be worth at least 10,000 won."

"Why do you think that?" I asked.

"Because I love it so much, and it was hard to collect all these stickers," Jimin answered.

My husband joined the conversation. "Jimin, how much do you think this doll is worth?"

"Um... 3,000 won?" Jimin said.

"Why 3,000 won?" my husband asked.

"It's kind of old, so it's cheaper than the sticker book," Jimin replied.

I thought for a moment. "Jimin, you have a point. But let's think about this. How are price and value different?"

"Price and value? What do you mean?" Jimin tilted her head.

My husband began to explain. "Value is something that can be different for each person. Like how much you love your sticker book. But price is usually an amount that many people agree on."

"Oh, so what I like and what other people would pay for it can be different?" Jimin asked.

"That's right," I answered. "For example, this piggy bank is special to our family because Grandma gave it to us. But to other people, it might just be an ordinary piggy bank."

Jimin's eyes widened. "Oh... so my sticker book might just be ordinary to other friends?"

"Exactly," my husband said. "This is called 'emotional value'. It can be special to us but not to others."

"Then... how do we decide on a price?" Jimin asked.

I suggested, "Why don't we look up the actual prices of these items on the internet and secondhand trading apps? That way, we can see how prices are set in the market."

We sat down together with a computer and smartphone and started looking up the prices of the items.

"Let's start with the crayon set," I said.

Jimin searched and exclaimed, "Mom, I found it! A new set is 7,000 won."

"I see. But Jimin, is your crayon set new?" my husband asked.

"No, I bought it last year," Jimin replied.

"Then how much do you think it would sell for secondhand?" I asked.

We looked at secondhand trading apps together. Similar crayon sets were being sold for between 4,000 and 5,000 won.

"Wow, the price has dropped a lot," Jimin said, surprised.

"That's right," my husband explained. "Things can lose value over time. Used items are usually priced lower than new ones."

We continued to look up prices for the other items, checking both online shopping malls and secondhand trading apps.

"The prices on secondhand apps are even lower," Jimin noted with surprise.

I added, "Yes, used items are usually sold cheaper than new ones. Do you know why we think the prices we find on the internet are reasonable?"

"Why?" Jimin asked.

"Because many people buy and sell things at these prices. We can say it's a price that many people agree on. But remember, this price isn't always right. It can change depending on the situation."

My husband added, "And in special situations like bazaars, things are often sold even cheaper. It's often for charity."

Jimin asked curiously, "Then how much should I sell my crayons for?"

I thought for a moment and replied, "Well, since they're selling for between 4,000 and 5,000 won on the secondhand apps, how about selling them for 3,500 won at the bazaar?"

Jimin nodded. "Oh, that way other friends could buy it too."

"That's right," my husband praised. "It's great that you're thinking that way. You're considering others while selling your things."

Jimin thought for a moment and said, "Then should I take the crayon set? I think I can sell it for 3,500 won."

My husband and I smiled at each other. "That's a good choice, Jimin. And learning this process of setting a price is a really important experience."

Jimin proudly took the crayon set and headed to her room. "I need to get ready to take it to school tomorrow. Thanks, Mom and Dad!"

We smiled as we watched Jimin go to her room.

"Dear," I said to my husband. "I wonder how Jimin will do at school tomorrow."

My husband nodded. "Me too. I wonder how much Jimin will actually sell the crayons for? Or will she change her mind and take something else?"

We looked at each other and laughed. We were looking forward to the story Jimin would tell us tomorrow.

The History and Significance of Bazaars

The word 'bazaar' originated from the Persian word 'bazar', which originally meant 'market'. As this concept was introduced to the West, it came to refer to 'charity sales events'.

In 19th century England, churches and charities began holding bazaars to raise funds. This tradition gradually spread worldwide and evolved into the form of bazaars we know today.

Interestingly, the word 'bazaar' was also used in the name of the fashion and lifestyle magazine 'Harper's Bazaar'. Founded in 1867, this magazine used the word 'bazaar' to convey the meaning of a place where various products and ideas gather.

Modern bazaars have more meaning than just buying and selling things. They strengthen community bonds, contribute to environmental protection through recycling, and are sometimes held as part of meaningful charity activities.

Bazaars held in schools provide students with a good opportunity to experience the basic principles of economic activity. Through the process of evaluating the value of items, setting appropriate prices, and negotiating, practical economic education takes place.

In this way, bazaars have historical, cultural, and educational significance beyond being simple events. The school bazaar that Jimin is participating in can also be seen as an extension of this meaningful tradition.

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