What is the best way to teach your kids about money?

I am 35 this year, I have two young ones. Aged 5 and 3. Younger one in pre-school and the older one is going to primary school next year. I was thinking how to inculcate a good habit in them when it comes to teaching them about how valuable money is for themselves and how it is not easy to earn. So they don't have the idea that money drops from the sky. I'm asking now because I hope that the older one can be a role model for the younger one when he goes to school also. Interested to hear from other parents or people who have been taught good lessons by your own parents? Thank you to the community people!

Discussion (14)

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Junus Eu

25 Nov 2019

Get them to handle money from an early age.
The most sensible children I've seen are the ones who were independent from a young age. When placed in certain situations where they have no choice but to think for themselves, that's really the best education.

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Charmaine Ng

15 Jun 2019

The Value Maximizer at @ Every Ma La Xiang Guo Stall

My parents do not know much about money & honestly I probably grew up with the wrong values as well. Don't have a kid but a nephew and honestly nephew is very much pampered by the parents who buy what he wants.
Whenever we walk into a toy shop; he ask for a toy. I would tell him "look, I only have this $10, we can spend it on an experience/activity or just a toy you will toss away." it didn't mean much to him at first; but one day we walked into a toy store and he desperately searches for a toy he wants so badly + under $10 and he couldn't find one... and we walked out buying nothing that he realizes he doesn't really NEED one.

Of course, I would explain to him how the $10 can compound to something bigger.. but thats for another story. Now, he also gets joy out of putting coins into my piggy bank so getting them to enjoy the process is important too.

I don't believe in doing household chores for $$; those are things YOU SHOULD DO. I do believe in getting rewards for them when they behaved exceptionally well.. like in the case of nephew being exceptionally nice + patient to a kid who was super rude to him. I simply acknowledge his actions and said that you were very nice by being xxx to said kid. I think you deserve to you know, share this ice cream with me...

Do not tag $ to good deeds done/good behaviors... reward them but don't say things like oh, you did blah blah blah today so here's $5 for you. Next time you do better and you will get $10 etc. Good things and behaviors should always be what they SHOULD do. We can reward them to link that good deed = possible rewards; but never to only do good things for rewards.

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Yong Kah Hwee

07 Jun 2019

I don't have kids yet, but I have always thought that I will make my future kids work for money. I.e. do chores for some extra money, to let them understand that money has to be worked for. What do you think? Would that be feasible?

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Angeline Teo

14 Jan 2019

1) Let them have their own piggy bank :)

2) Ask them daily questions related to money - when taking them out to a place, get them to remember the bus fare to and fro. I think it helps them be mindful about the small things. :)

3) Talk to them about your own lessons about finances to help them learn simple concepts. (Comparing prices of a product in one store as compared to another is a good start!)

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