How to Money Parent your Child: An Age-Group Guide

If you’re like most Asian parents, you probably view teaching your child about money as a crucial task so you can prepare them for life. In fact, over 95% of parents across Asia rated money parenting as something that is important to their family, found the Asia Money Parenting survey commissioned by Eastspring Investments.

While it’s a clear priority for Asian parents, the methods to teach your kids about money are less obvious. How can you do this? And what money lessons are right for their age?

The key to teaching your kids about money lies in observing what they’re ready for. No two children are the same. Some will fill up the piggy bank with ease; others might have trouble understanding that money isn’t a limitless resource.

The important thing is to make practical money lessons — simple, no-nonsense financial education — a regular part of your family life.

Every child is different, and certain things are better learnt and understood at specific ages. Here is a guide for parents on how to teach your kids about money according to their age group:

Having entered primary school, your child is rapidly learning more and more about the world every day. This is an ideal time to teach them about the value of things¹.

And how can you do this?

You can start by putting a price tag on everything. Not literally, of course, but at this age, your child is ready to understand that some items cost more than others. Take them on grocery trips and point out prices. Make them choose which cereal to buy based on your budget: one pricier box with the marshmallows, or two boxes of corn flakes?

A separate but connected lesson is the difference between value and price. For example, teach them that during recess, for the same amount of money, they could either buy junk food or a nutritious sandwich. The price of both items might be equal, but the sandwich would give them more value for their money, nutrition-wise.

To get started on money parenting for this age group, there are plenty of resources online. Cha-Ching, a financial literacy programme created by Prudence Foundation, in partnership with Cartoon Network, is a great starting point. There’s a wealth of online videos that provide financial education for your child around the four key concepts of Earn, Save Spend and Donate. Check out parent guides and downloadable tools for you to explore on your money parenting journey.

Teaching your children about money and raising them to be financially-literate adults takes a lot of work, but it is one of the best gifts you can offer them as a parent. For more tips on how you can discuss money matters with your child, read about money lessons that will last a lifetime.

At the end of the day, this is only a guide. Remember, every child is different, so teach them at a pace that they’re comfortable with. As a parent, you know that it is the journey that is important. As long as you’ve taught your child the basics of money management, on which they can build on with their own experiences, then you’ll know that you’ve done your job well.

Aside from all the activities we’ve suggested here, your actions also play a part in your children’s financial learning journey. Learn how to be a good role model for your little ones here.