Four parents share honest reflections on teaching children about money—from piggy banks to crypto, values, mistakes, and everyday lessons.

 

Tess, 55

Children’s ages: 23 and 21

We taught our children how to budget by giving them an allowance and having them account for where it went. This helped them realise how easy it is to lose track of money, and whether it was being spent on frivolous and fun things or things they would use or bigger things they were saving up for.

I deal with the differences in financial values between my children and me by remembering what I was like at their age and realising I was no different, but I did okay! Also, taking into consideration that it is a different world now and things we were saving our money for back in the early 2000s are no longer thought of as possible for them, for example, housing. And there is increased spending on comfort items.  

I feel inadequate teaching my children about modern financial topics because I can’t teach them something I don’t fully understand myself. E-currency is rapidly evolving, and I can’t keep up. I’m not even sure how I feel about crypto. There are so many scams. So, although I know it is inevitable, I’m staying away until it is less dodgy. There are some good videos, which we direct our kids towards.

The hardest part about teaching children about money is trying to explain that billionaires who have money do not do anything about poverty.

 

Eva, 57

Children’s ages: 25 and 23

It is important for children to know about money, financial concepts and values. Money management is a life skill, just like reading and doing math.

I started teaching my children about money when they were around 10 years old by letting them save their lai see money into their cash box, opening bank accounts for them, and letting them pay for purchases with a limited budget. 

We share similar financial management values, and I feel literate enough to teach my children about modern financial topics. It takes a lot of time and patience to teach and practice good money management skills.

 

Pritha, 54

Child age: 23

Financial literacy for children is not only important, it is essential. As parents, we get too focused on instilling life values and academics, but forget to teach our children about the art of managing money. This is partly because we are still busy learning ourselves, and we feel that money matters are not for children. 

As a kid, I remember being told to never touch money, as it is dirty. My grandfather used to ask me to help him maintain his household accounts. I have seen my mother do the same.  Therefore, I learnt that it was important to keep track of expenses and never to spend beyond one’s means. Borrowing was bad. Saving was good. However, we never discussed much about the art of smart investment with an aim to grow our savings. Low-risk, fixed deposits in banks and post offices were all that I was aware of. Once I started earning, I realised that there was more to learn.  

I passed on what I was taught to my son. Live within your means and save about 50% of what you earn. Borrowing must be avoided at all costs. This he experienced through family behaviour, and we verbally reinforced every time any non-essential expense came up. Even for essential expenses, he has been taught to pick the value-for-money option, which is within our financial means.

As to investment, I taught him hands-on by opening an investment account for him. This exposed him to different financial instruments, risks of market volatility, and the need for smart investment decision-making. He knows now that if savings are smartly invested, they can generate fresh income. 

I feel it is very hard for youngsters to identify and appreciate risks in general. The 「save for a rainy day」 concept remains theoretical in their minds. I believe they would be more open to learn and adopt if we explain it to them a little differently than our parents did to us. 

Fortunately, we do not have differences in financial values, and I am open with my son about our financial status and the real risks that we are preparing to mitigate, based on real-life experiences.

However, I don’t think I am financially literate enough to teach my son about modern financial topics. Given the dry nature of the subject, I have never prioritised these money discussions. I am a conservative with regards to money, with an extremely low risk appetite and literally scared of crypto, with absolutely no experience or interest in it.

 

John, 44 years old

Children: 13 and 6

I believe one of the most important lessons parents can teach their children is how to manage money. Growing up, discussions about finances weren’t part of our upbringing. We had to learn how to save through trial and error.

I have been trying to teach my children the importance of saving and the concept of opportunity cost. That is, by choosing to buy something, you give up the chance to spend that money on something else. 

Ever since my children started to say the magic phrase 「buy this for me」, my wife and I have kept encouraging them to save in a piggy bank. We specifically chose piggy banks made out of transparent glass so that our children could observe how they filled up. We have always made a big deal when inserting the coin, saying it is a big step towards the goal and praising them for their patience. We tried not to make the process too long. We always praise them when they buy something after saving money. We also emphasise the importance of choosing wisely and reminding our children that there are various options and they should choose among them wisely.

The hardest part of teaching them about money is enduring children’s tantrums from time to time. As such outbursts fade, they become more understanding. Another challenge is to teach young children that money is a finite resource and it takes hard work to earn it. 

To handle differences in financial values, we always try to explain our logic for why one thing is better than the other, usually emphasising the practicality and the longevity. However, sometimes we have to give them a chance to make silly choices. It’s part of the learning process. After a few bitter cases of buyer’s remorse, they became more attentive to our arguments. ■