Financial literacy activity
Negotiation Game
Practice trading with friends and family! Learn to ask for what you want and offer something fair in return. Discover that a good trade makes both people happy.
Materials and setup
- items to trade
- play money
- price tags
- paper for tracking deals
How this changes by age
Pre-K (ages 3–4)
Practice trading with friends and family! Learn to ask for what you want and offer something fair in return. Discover that a good trade makes both people happy.
Steps
- Give each player 5 different small items (stickers, crayons, snacks, toy figures).
- Each person picks one item they really want from another person.
- Practice asking nicely: 'I really like your red crayon. Would you trade for my blue sticker?'
- If both say yes, trade! If not, try offering something else.
- Talk about it: 'A good trade is when both people are happy with what they got.'
Learning objectives
- Practice polite communication when asking for a trade
- Understand that a fair trade makes both people happy
- Experience giving up something to get something they want
Kindergarten (ages 5–6)
Play a trading and haggling game! Each player has items with different values. Practice negotiating deals where both sides feel like winners. Learn the art of compromise.
Steps
- Give each player 8 items with point values written on them (1 to 5 points).
- Goal: get the highest total points through trading. But you must convince the other person to trade!
- Practice haggling: 'I will give you my 3-point item AND my 1-point item for your 5-point item.'
- Rule: both players must agree. No one is forced to trade.
- After 5 trades, count your points. Discuss: 'What made someone agree to trade? What made them say no?'
Learning objectives
- Assign and compare values to items during negotiations
- Practice making offers and counteroffers
- Understand that successful deals require both parties to agree
Early elementary (ages 6–8)
Run a negotiation marketplace! Buyers and sellers haggle over prices, practice persuasion techniques, and try to get the best deal. Learn about win-win outcomes and walkaway prices.
Steps
- Set up a marketplace with 10 items. Each seller has a secret minimum price (lowest they will accept). Each buyer has a secret maximum price (most they will pay).
- Buyers approach sellers and make offers. Sellers can accept, reject, or counter-offer.
- Practice strategies: start low as a buyer, start high as a seller, meet in the middle.
- After each deal, both sides reveal their secret prices. Was it a win-win? Did anyone get a great deal?
- Discuss: 'What happens when you cannot agree? It is okay to walk away and find another deal.'
Learning objectives
- Practice negotiation strategies including opening offers and counteroffers
- Understand the concept of a walkaway price and deal range
- Analyze whether a deal was fair by comparing to each party's target price
Upper elementary (ages 8–10)
Master advanced negotiation through multi-round deal-making with complex terms. Practice BATNA (Best Alternative to a Negotiated Agreement), package deals, and collaborative problem-solving to create value for all parties.
Steps
- Set up a complex negotiation: buying a used bicycle. Buyer has a budget of $50. Seller wants at least $40. But there are extras: helmet ($10), lock ($5), repair kit ($8).
- Round 1: Negotiate the bike price only. Each side writes their BATNA (what they will do if no deal is reached).
- Round 2: Add the extras. Can you create a package deal that makes both sides happier than just the bike alone?
- Round 3: Add a twist — the seller needs the money by Friday, the buyer can pay now. How does urgency change the negotiation?
- Analyze: What strategies worked? When did both sides benefit (win-win)? When did one side lose?
- Write negotiation tips based on your experience. Present your top 5 strategies.
Learning objectives
- Apply BATNA thinking to strengthen negotiation position
- Create value through package deals and creative problem-solving
- Analyze how factors like urgency and alternatives affect negotiation outcomes
Safety and evidence note
Read the full activity before beginning. An adult should supervise tools, heat, food, outdoor work, movement, and experiments as appropriate. Completion records that the activity was done; the child’s explanation, work sample, photo, or demonstration is stronger evidence of learning than a completion check alone.
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