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When is a good time to start to teach good money habits to preschoolers? Good money habits can begin in their daily lives, at home or when you are out doing groceries shopping. Instead of buying x number of toys for your children, look at how you can develop money sense and money habits at the same time.
As a parent, we play a key role in shaping our children’s development in their early years and beyond. We can make some changes in our money habits by using cash instead of cards. When I was an educator, I didn’t realise how important this was until a child came to school with coffee for us in the morning.
“Teacher Mag, I bought coffee for you.” “Oh, thank you.” Then the mom shared the conversation they had. The girl insists on getting coffee for us and when the mother asks whether she has the money to pay for drinks since she said she is paying. The girl replied, “Oh, don’t need to pay. Just tap the card and the person will give you the coffee.” At the age of 3, she already had the concept that she doesn’t have to pay for the items and by tapping the magical card, she can get what she wants.
Let’s start by being a good role model, as it will give them a head start in their early years. Read to find out more.
Financial literacy is developing a skill set to make good decisions about their money and have a better money sense. Developed the understanding of different terms: making, saving, spending, donating and investing money. Starting early gives them the basics of what money management is all about.
You can incorporate these concepts as part of your daily living. Start with earning their rewards through doing simple chores at home by collecting an x number of stamps/stickers before exchanging for a treat or a toy. Or give your child $2 to get a treat when you are doing groceries shopping, eating at hawker centre/food court or at the wet market. Your child can also choose to save the money in their piggy banks or donate it.
Preschoolers at the age of 3 – 4 years old may not understand the value of money or have a good number concept.
You can read the suggested books for your child/ren:
Engage them in pretend play - as a chef, shopkeeper or even as mummy and daddy. Add simple homemade currencies, starting with $1 and $2 as these are number concepts they would have developed.
On your trip to the supermarket, you can give your child a $1 coin to put into the supermarket trolley. As you do your groceries shopping, you can engage your child in simple conversation about the value of the item you are buying. “5 apples cost $4.50.”
They are better at their number sense and have started to explore simple addition and subtraction in their preschools.
You can read the suggested books for your child/ren:At this age, they have developed the concept that the red packet they received for Chinese New Year and their birthday contains money. As parents, we do keep the money they received and put into their savings accounts.
Now, instead of keeping them, why not involve them in the decision making and reinforce the money concept they have learnt.
“These are the money we have received from the red packets. What should we do with it?” (Remember to save, give and spend.)
“How much should we save, give and spend?” “What would you like to get for yourself?”
As your child goes through the process, guide them in their money decision making. When they have decided on their budget, bring them to the bank to deposit their money and show them the amount they have in their bank account. So, for the next birthday party, instead of a birthday present, give a red packet.
Remember, to do what you preach. So, the next time while you are looking at that new luxury bag or watches, have you plan your money decision via: earn, save, give and spend?
