Parents may have different opinions when it comes to teaching children about money management.
“Kids do not have to deal with money that early!”
“Will my child become materialistic after understanding the concept of money?”
“My kid does not need to spend money yet, so I don’t see the need to talk about money concepts now.”
“Kids will naturally know how to manage money when they grow up.”
“It’s the teacher’s job to teach them money management!”
Money management is a life skill
Children are exposed money in their everyday lives, such as shopping at supermarkets with their parents, seeing parents withdraw money from an ATM or taking the bus with their Octopus cards. However, children may not understand that the money comes from their parents’ hard work, or that money is limited and should be used prudently.
In fact, good money management is an essential life skill. It is important for parents to teach their children the correct money concepts and values from an early age.
Teach money management from an early age
When should I introduce children to money management? The earlier the better. Studies also show that the earlier children develop responsible financial behaviours and attitudes, the better it is for their future development.
Generally speaking, when children become curious about money, parents can start teaching them about the subject, even as early as at the ages of 3 or 4. Children should understand that money can fulfil their everyday needs but it is not a fix-it-all, and parents can help them cultivate good money management habits at their own pace.
Learn through daily life
Parents can also take advantage of different opportunities in daily life to strengthen children’s understanding of money, according to their interests and abilities, and encourage them to adopt good financial behaviours.
IFEC’s Parenting Portal provides free-of-charge games and worksheets designed for kids of different ages, covering basic money concepts, such as adhering to a budget, recording expenses, distinguishing between “needs” and “wants”, counting money and calculating change. Parents can download these materials and tailor the content as needed, or combine them with other activities to facilitate money management learning in a fun way.
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24 Sep 2020
