fbpx
Site logo

--- Advertisement ---

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

 5 Tips for Teaching Money Management to Kids

Thai Coin

When I mentioned money to my 5 year old (in the context of how I didn’t have enough funds on hand to buy him a certain toy), he said, “Can’t you just go to the bank and get more?” At that moment, I realised, with a chuckle, this may be the right time to teach my child about money, how it’s earned, and how it should be managed. But how does one go about teaching children such a complicated subject?

Well, it’s not the easiest thing to approach, but managing money can be taught in small steps. Below are 5 tips.

  1. Children from the age of 5 (or maybe even younger) can incorporate the concept of money into their play. You’ve seen the fake bank notes and plastic or wooden coins fashioned for kids, right? Those are a great place to start. You can enact pretend play scenarios where you “sell” some objects you already have at home for “money”. Kids will get a sense of what’s perceived to be more “valuable”, which would “cost” more. My son also loved putting coins in a slotted piggy bank; it was great for fine tuning his motor skills, coordination, and counting ability.
  2. Eventually, you can more deeply instill a sense of the value of money. Explain that people work to make money, and the bank is a place that keeps it safe and helps it grow (skepticism aside, please!).
  3. At the same time, you can teach earning, budgeting and saving in simple terms. First, give them some simple chores like making their beds each morning, helping set the dinner table or cleaning the dishes, sorting laundry, etc. in exchange for a small allowance. Explain that they can set aside amounts for different things like sweets, toys, charity, savings, etc., based on your family’s priorities and values. You can also have them allocate their allowance into several jars so they have a visual representation of the budgeting process.
  4. Recognise that it’s hard for kids to set priorities, so sit down together and make a wish list of the things they want to do with their money. Help them rank the items by discussing what’s important about each item on the list.
  5. However, don’t try to dissuade your kids from initially blowing all their money on one thing, like a toy, that they insist on buying. Make such situations a learning opportunity — if they spend their allowance on X, and find they want Y later on, explain the consequence of overspending or impulse buying, which goes hand in hand with teaching delayed gratification. There’s definitely some value in this sort of firsthand experience; let them learn by their mistakes.

If you have time and patience, you can show by example, too. Before going shopping at the supermarket, make a budget and plan your purchases, with an approximate price for each item. If you shop online, plan on how much you want to spend and get the kids involved in keeping track of the cost of the items you want to buy, maybe with a simple calculator.

Also, they will begin to see that everything costs money — and some options, such as generic branded products or locally produced goods, cost less. Compare costs and try to stretch the budget, which children can also do with their allowances.

I hope these tips help in building the foundation for your child’s money management skills. Once they’re young teenagers, it may be time to trust them with their own bank account and ATM card, where they can put what they have learned into practice (with safeguards and limits in places, of course) in their daily lives.

Register your email address here and we’ll notify you when new articles get uploaded.

Pssst... like what you're reading?

Join our community and never miss an event, post or update!

Just enter your email address below:

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

Follow Us!

Upcoming Events

Wellington College International Bangkok – Football Training

Wellington College International Bangkok 18 Krungthep Kreetha Road Saphan Sung District, Bangkok, Thailand

Join us here at Wellington for the finest football training in town! Our Wellington Extra providers, Galaxy, have lots of extra opportunities on their programmes this year. If your child […]

฿12000 – ฿35200

BimBi Italiani – Imparando l’Italiano

Salesian Sisters Foundation Saladaeng Road, Silom, Bangrak, Bangkok, Bangkok, Bangkok, Thailand +1 more

ANNOUNCEMENT : ENROLLMENT OPEN FOR "IMPARANDO L'ITALIANO" IN BANGKOK,THAILAND For everyone in , BimBi Italiani has reopened registration for the weekly group language courses for children in Imparando l'Italiano from September […]

฿610 – ฿8610

Asobiba Art Exhibition

XSPACE GALLERY 71 15 Pridi Banomyong 14 Alley, Phra Khanong Nuea, Watthana,, Bangkok, Thailand

“Asobiba” Group exhibition by Nagoya University of the Arts and the Department of Fine Arts at KMITL At Xspace Gallery, Bangkok. (Main Hall) SHOW PERIOD: September 7 – December 22, […]

Please Contact

Alliance Française de Bangkok – French Course

Alliance Française de Bangkok 179 Witthayu road, Khwaeng Lumphini, Khet Pathum Wan, Bangkok,, Bangkok, Thailand

Great news for parents in Bangkok! Open the door to a world of linguistic and cultural discoveries for your children aged 3 to 11! Our next French course session begins […]

Please Contact

Fashionisland & The Promenade – ImmersiveGhost

Fashionisland & The Promenade 587,589, 589/7-9 , Ramintra Rd., Khannayao, Bangkok, Thailand, Bangkok, Bangkok, Bangkok, Thailand

  FirstTimeinThailand!! ImmersiveGhost October 11 - November 17 Bring back the legend of Thai ghosts to life again!!!️ Fashionisland is preparing to open the door to the world of spirits, […]

฿259 – ฿999
Get The Latest Updates

Subscribe To Our Weekly Newsletter

Get the latest kid and family-friendly activities and events in your inbox every Thursday! No spam, guaranteed.

More information

You May Also Like...