8 Ways Mothers Teach Finance to Children

How Mothers Teach Finance to Children – The ability to manage finances, both personal finances and family finances, is an important aspect that will be very useful in one's life. Therefore, it is better for a mother to teach financial literacy to children from an early age. But, how do mothers teach finance to children?


Tips for Teaching Finance to Children

How Mothers Teach Finance to Children

This time, we will provide tips on how mothers teach finance to children. Check out the following tips!

1. Start Early

Teaching your child about finances from a young age is a good start in the financial education process for children. In fact, you can start right when they can do basic arithmetic.

Start by giving them an understanding of what money is and what it is used for in everyday life. Give them an example of the transaction process you do, both when using money cash or use debit or application in handphone You.

Thus, from an early age they already know what money is, its function, and how the transaction process is carried out.

2. Invite them to save

How Mothers Teach Finance to Children

At first, their relationship with money will be in the form of transactions and spending money. After that, teach them to save regularly and explain how important saving is for life.

You can start by giving them incentives such as saving money to buy the toys or clothes they want. Give them a small amount of money when they have achieved something, such as getting good grades in school. Another way is to save money that you give during religious celebrations such as Eid and Chinese New Year.

As a result, they will become accustomed to saving and think carefully about what they will buy using the saved money.

3. Give them a chance to earn money

As explained a little in the previous point, it's good if you give them an opportunity to earn money. It can be a gift for those who have achieved an achievement, money given by a relative during religious celebrations such as Eid and Chinese New Year.

Another way is, when they already need pocket money for their daily needs, you can teach them to set aside some of the money for savings.

So, they will get the opportunity to earn money and save from that income.

4. Teach Them to Make Wise Decisions

In addition to providing an understanding of money and saving, you should also teach them how to make wise financial decisions.

A child who saves is likely to think only of short-term expenses. Like to buy toys, clothes, or sightseeing. Therefore, they should be given an understanding of the value of an item they want.

Talk to them about it, and they will become accustomed to making wise spending decisions.

5. Teach Them Easy Hands

Being light-handed or happy to do charity is a very good thing to teach children. By teaching charity, he will better understand the value of money and how much it needs the many people out there who are less fortunate.

Thus, he will have a better appreciation of the value of money and will be more willing to give to others.

Read also: The Role of Parental Supervision in Children's Financial Activities, What Is It?

6. Teach Spending Strategy

In educating children with financial literacy, they must also be taught financial management strategies. One of the basic things in managing finances is a spending strategy. This financial strategy can be in the form of dividing pocket money given to 3 purposes, namely saving, charity, and daily needs. The portion of each need is 15% for saving, 15% for charity, and 70% for daily needs.

For example, you give pocket money to your child in the amount of 400 thousand for a month. When you give pocket money, you explain to the child the money is his pocket money for a month. As much as 60 thousand are set aside for saving, 60 thousand for charity, and 280 thousand to buy their needs for a month, such as eating, buying books, school supplies, and transportation.

7. Invite the Children to Create a Monthly Budget

A monthly budget will help your child develop a more detailed spending strategy. Like where to save, how many times a month they will save, where they will donate, and what their needs are in a month.

By planning in detail and making a budget, the chances of them going out of budget and needing more money will be smaller and they will be more consistent in managing their finances.

8. Be a Good Example

The most important way when providing financial education to children is to set a good example.

Show that everything you have taught them can be done and that you do it well. Save, make a budget, do charity, and be wise in managing finances. 

In this way, they will imitate the good things you have done, fully understand the process and how to do it, and become more enthusiastic about learning and managing their finances.


How's Mom? Hopefully some of the tips above can give you a clear picture of how mothers teach finance to children. Now, to make this important educational process easier, Whiz provides various interesting features that can make it easier for you and your child to learn about financial literacy and manage their finances!

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