Families For Life | It makes sense for kids to have money sense!

There’s more to money than just spending! There’s also saving, budgeting, investing, and so much more. Teaching these concepts to kids might seem intimidating but introducing the idea of money to them early can better prepare them for the future.

Not sure where to start? Here are a few tips to help make your little ones more financially savvy!

1. Talk about money

Start conversations about money as soon as your child learns how to count. This can come up naturally during role-playing sessions. For example, when they’re pretending to serve you drinks, ask how much it costs. Likewise, tell them the price of the food you prepared so they can ‘pay’ you.

If your child is too young to count or recognise numbers, the payment can be entirely pretend as long as they understand the concept that things don’t just appear; they have to be bought.

As they get older, you can even create pretend money to carry out transactions and make the experience feel more realistic.

2. Let them buy themselves a gift

Most primary school children would already be receiving a daily allowance. This is a great time to teach them how to save! Help your child set a goal – perhaps a new toy or a small meal – and ensure this goal is attainable within a short time. If the goal is too expensive and it takes them too long to save up, they may lose motivation and throw in the towel.

Once they’ve chosen something achievable, guide them to set aside part of their allowance to save for it. You can create a money jar to help them keep track of their savings. A clear jar works best so they can see their money growing. This visible progress can help motivate them and keep them on track.

3. Understand needs vs wants

Knowing the difference between needs and wants is a key part of budgeting. The next time you go grocery shopping, take your child with you! As you go down the aisles, explain why some purchases are essential while others are optional.

While you’re at the supermarket, you can also get them to compare two similar items from different brands and discuss which one offers better value and why. These real-life examples can help your child learn to make smarter financial choices.

Financial literacy is for everyone, not just adults! By making money lessons part of everyday life, you’re helping your child build lifelong skills. Keep it fun, simple, and relatable, and you’ll be surprised at how quickly they pick it up.

After all, imparting some money sense now lays the foundation for a lifetime of better financial choices.

Resources:

https://familiesforlife.sg/pages/Article/4-Ways-to-Teach-Your-Child-About-Money

https://familiesforlife.sg/pages/Article/How-to-Teach-Children-About-Money

https://www.moneysense.gov.sg/getting-your-kids-started-on-money-management/