A child's point of view:
"And I'm going to buy stuff to get more money."
"Can you explain that to me?"
"Like when we go to Target and buy stuff, they give us more money."
Drama Queen is not only all about growing a treehouse, but she's all for earning money to buy stuff for it. She has a long list. We're trying to figure out how to get her to understand how money works, because she obviously doesn't so far. She has chores she can do to earn money, 5 cents per chore is what she decided was a reasonable rate. But she doesn't understand that even though she has 7 cents now (found 2 pennies while cleaning) that's not enough to buy anything. Most things cost at least $1, and that's 100 pennies. "What about five dollars?" That's 500 pennies. When you buy something and it doesn't cost the same amount as the money you give them, they give you back the money that you didn't spend.
She wants to go to the store (Target of course) to buy stuff for her treehouse, but I explained that she doesn't have enough money to buy anything and it's better to wait until her treehouse actually exists before buying stuff for it. She has plans to have a lemonade stand "and I'm going to sell lemonade for a $1.00 so I can get lots of money." I informed her that I didn't think anyone would pay $1 for a glass of lemonade, but she is set in that price because "I want to make lots of money." She was also all ready to drag stuff outside this morning and have a yard sale. We explained to her that a yard sale is a great way to get money, but it requires more preparation, like signs and good weather(it's supposed to rain today).
Now she's come and asked if she can go to build-a-bear and make a thing there for her tree house, I told her if she wants to do that for her birthday, that's fine, we can do build-a-bear as her present. But she wants to do it now. I informed her that it costs a LOT of money and we don't have money for that right now. Not the answer she wanted to hear. Thankfully she's not getting super upset, but just pouting a little.
How have YOU explained how money works to your kids?