“Can I get this?”
“Just this one, please?”
“I promise I’ll use it!”
And before you know it…you’re tapping your card again.
As parents, we naturally want to give our children what we didn’t have and, as best as we can, give them everything they want. But somewhere along the way, if you’re just like me and tend to wonder, are they actually learning the value of money…?
Thing is, financial responsibility isn’t something children magically understand one day. It’s built through everyday habits, conversations, and small decisions that children themselves can make.
And the good news for us all? You don’t need to be a finance expert to teach it.
Why Financial Lessons Should Start Early
Children begin forming money habits as early as primary school age in simple patterns:
- expecting things instantly
- not understanding limits
- assuming money just “appears” (in Asian terms: fall from the sky)
That’s why introducing basic concepts early helps them grow up with a healthier relationship with money.
Step-by-Step: How to Teach Kids About Money
1. Let Them See How Money Works
We tend to hide money conversations from kids because we don’t want to “burden” them.
But letting them see simple things like paying for groceries, choosing between items, and rejecting certain requests helps them understand that money is hard-earned and should be spent wisely.
P/S: It is okay to introduce children to a budget.
2. Give Them Small Amounts to Manage
You can’t expect children to learn money…without handling money.
Start small with things like weekly allowance, money for snacks at school, and a fixed amount for toys.
Let them make choices (yes, even bad ones because that’s when they learn best).
3. Introduce the “Spend, Save, Share” Rule
This is one of the easiest systems for kids to understand.
Divide their money into three parts:
- Spend: for things they want now
- Save: for something bigger later
- Share: for giving (family, charity, friends)
It builds an early balance between saving, generosity and wise spending.
4. Let Them Experience Being “Broke”
This one is hard for parents, and rightfully so.
When they spend everything too quickly, the instinct is to top it up.
But letting them feel some sort of regret will teach them a priceless lesson.
And no, we’re not punishing them, but it’s a simple show of cause and effect.
5. Talk About Wants Vs Needs
This doesn’t have to be a big stressful sit-down talk where you expect them to grasp the concept immediately.
It can happen during grocery shopping, during a car ride or even when they’re showing you that catalogue of toys (we all know which one I’m talking about):
Simple questions like:
“Do we need this, or do we just want it?”
Over time, they begin to think before asking.
6. Show Them How You Make Money
Kids often see spending… but not earning.
For younger ones, to help them understand, parents can talk about their jobs (positively, of course) and the effort they put in which leads to the income.
For older kids, you can even introduce:
- small chores with rewards
- mini “projects” they can earn from
- selling their toys to make money and space for newer ones.
7. Make Saving Feel Exciting
Saving often feels like “you can’t have this”.
Instead, reframe it as a step towards something bigger and potentially more fulfilling.
Try adding a savings jar (a.k.a. tabung) and a chart to track their savings progress
When they see it growing, motivation builds naturally.
More Than Just Ringgit and Cents
Teaching children about money isn’t really about getting them to save every cent or saying no to everything they want.
It’s about shaping how they think, how they wait, and how they learn to tell the difference between wants and needs. Over time, they begin to understand that money comes from effort, that choices come with limits, and that not everything has to be instant.
And one day, without us even realising it, they’ll stop asking and start managing things on their own.
From one parent to another, the urge to give our children everything (especially when we can afford to) will always be there. But raising a child who truly understands value? That’s something that stays with them far longer than anything we could ever buy.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as medical advice from Motherhood. For any health-related concerns, it is advisable to consult with a qualified healthcare professional or medical practitioner.
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