ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Economics for Kids: Learn About Goods and Services

Updated on September 11, 2019

Economics is a field that is concerned with buying, selling and money. Goods and services are an important concept in economics. You and your parents purchase goods and services on a regular basis. People sell various kinds of goods and services. You and your parents pay money to buy them.

When you go to the toystore to get a toy, you are buying a good. Whenever you go to the hair salon to get your haircut, you are purchasing a service. Your toy is a tangible good but the haircult you received is intangible. So, what exactly are the differences between goods and services?

Food is a good
Food is a good


Goods are things we can touch like toys, furniture, books, coal, clothes, food and electronics. So, the things you eat and wear are goods.

Goods are often called physical goods because you can actually touch them. Grocery stores, electronics stores, hardware stores and clothing stores all specialize in selling physical goods.

When you go to a toystore, you trade money for your toy. Trading is the buying and selling of goods and services.

Dentists provide a service
Dentists provide a service


People also buy and sell services. Services are things that are done for you. When you get a haircut, you are buying a service. When your parents pay someone to wash the car, they are buying a service.

There are lots of service providers like doctors, dentists, lawyers, accountants, babysitters, and house painters. Services are also called intangible goods.

Tangible and Intangible

Goods are called tangible because you can touch them. You can give a good to someone else. A book is tangible because you can hold it or give it to a friend.

Services are called intangible. You can’t touch them. You can’t give them to someone else. A haircut is intangible because you can’t hold it. You can’t give your haircut to a friend. If you buy songs, movies or books for download from the Internet, they are also considered to be intangible because you can't actually touch or hold them. They aren't physical objects.

Tangible versus intangible
Tangible versus intangible

Consumer and Capital Goods

Consumer goods are the "final" goods purchased by customers. When you buy a toy, that's a good in it's final or end form.

Capital goods are things used to produce goods and services. Your toy had to be made in a factory. The factory purchased the capital goods needed to make your toy. Plastic is often used to make toys. Factories have to buy the plastic they use to make toys.


    0 of 8192 characters used
    Post Comment
    • profile image


      2 months ago

      thanks that helped me alot

    • profile image


      2 months ago

      So this ite is very helpful for me thanks 5stars

    • profile image


      14 months ago

      good job!

    • profile image


      14 months ago

      what's up

    • JoanCA profile imageAUTHOR


      7 years ago

      Thanks rfmoran. These are useful basics for kids to learn.

    • rfmoran profile image

      Russ Moran - The Write Stuff 

      7 years ago from Long Island, New York

      too bad you can't travel back in time to give this hub to all members of congress as well as the administration. I'm sharing this with my grandkids.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)