Is Your Child Financially Literate?

We give you tips on how to teach your child the lost curriculum of financial literacy.

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in the modern world, the role of money is complex, and it is important that our children are financially literate. To equip the little ones with skills such as work readiness, entrepreneurship, and financial literacy, the best way is through hands-on learning.

Junior Achievement (JA) is a global non-profit organisation that develops programmes to inspire and help young people succeed. Ms Ng Hau Yee, Director, Junior Achievement Singapore, offers some tips on how to teach children about the role of money in everyday life, starting with simpler concepts for the younger age group, to more detailed explanations and activities when they are older.

For The Budding Brood: Pre-school and Kindergarten (between ages three to six)

As parents are the primary caregivers at home, children are conditioned to think that their parents will give them everything they want. Hence, the financial literacy journey for children in this age group should naturally begin with the introduction of earning and saving.

To help build up your child’s independence, parents can introduce scenario-based activities, such as taking a trip to the market to teach them the concept of trade and the exchange of money. Other than the counting of notes and coins, parents are also encouraged to think of new creative ways to teach children about earning to get what they want instead of depending on others.

For example, when discussing things your children want you to buy for them, you can suggest that they earn the money to buy these themselves through simple chores at home such as tidying their toys up or laying the dinner table. This teaches them the concept of earning and the association of working hard for something they want.