What should I know as a parent?

4 ways to teach your children how to save money

Educating your kids on the value of money from an early age will help them to become savers not spenders.

What kind of money parent are you? Take our 2-min quiz to find out.

According to financial experts and studies, by the age of seven, most children would already have grasped how money works — in Singapore, this is when they usually start handling their daily allowance at primary school.

In addition, their attitudes towards money should also be formed by this age. This means that if you want your kids to be prudent with money, you have to teach them its value as soon as they are able to count. Here are easy ways how we, as parents, can help our children kick-start their lifetime savings habit.

1. Teach wants versus needs — visually

Before handing junior any money, help them grasp the difference between needs and wants with the help of sorting cards. Each card should have a drawing of a need — such as basic daily meals —or a want — such as ice cream. Ask junior to sort the cards and discuss each decision together. You can also help reinforce this idea by playing games with your child using Monopoly money, fake bills and a fun shopping list to help illustrate the point that buying too many items in the “want” category might cause those in the “needs” category to go unmet, and why this is not good — the WiFi in the house might get cut if the bill is not paid on time for example, and he can’t watch his favourite cartoon online until it’s paid.

2. Help them understand the value of saving

One way to develop your child’s financial sense is through the careful use of the money he receives from his allowance or pocket money, or from his saved up hongbaos. You can help encourage junior to drop his daily savings into his piggy bank at home and then into his very own savings account at the end of the month. Seeing his bank balance grow will be a proud moment for both of you.

Some kids think a game console can be bought for two dollars. For them to grasp the logic of saving money and be able to evaluate if an item they want to buy is worth its price, they need to realise how much it costs — in a manner they understand. The next time junior wants a bigger purchase such as the latest video game, suggest that he uses the money he has saved from his daily allowance or pocket money. You can offer to help match the amount your child can use from his savings for this item. This helps your child take some responsibility for his wants. Also, teaching your child the value of money when young helps sets him up for good saving and spending habits when older.

3. Make budgeting easy

Once savings goals are created, parents can introduce the idea of budgeting to help their children spend their pocket money wisely. A good practice is to hand out pocket money in lower denominations, so it’s easier for junior to set aside a portion for various goals.

There’s no better way to teach a child how to save than to set an example. With the right endowment plan, you can prepare for your child’s future milestones including education, and give the budding saver something to really look forward to.

While it’s important to teach your children the sense of money management, we know protecting your children’s health is a top priority. Consider these three insurance plans for your child.

Get #MoneyParenting insights in your inbox

Insider access to the latest content, tools and events

Your privacy is important to us. Learn about our privacy policy and how we protect your personal details.

This document is produced by Eastspring Investments (Singapore) Limited and issued in:

Singapore and Australia (for wholesale clients only) by Eastspring Investments (Singapore) Limited (UEN: 199407631H), which is incorporated in Singapore, is exempt from the requirement to hold an Australian financial services licence and is licensed and regulated by the Monetary Authority of Singapore under Singapore laws which differ from Australian laws.


Hong Kong by Eastspring Investments (Hong Kong) Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong.


Indonesia by PT Eastspring Investments Indonesia, an investment manager that is licensed, registered and supervised by the Indonesia Financial Services Authority (OJK).


Malaysia by Eastspring Investments Berhad (531241-U).


United States of America (for institutional clients only) by Eastspring Investments (Singapore) Limited (UEN: 199407631H), which is incorporated in Singapore and is registered with the U.S Securities and Exchange Commission as a registered investment adviser.


European Economic Area (for professional clients only) and Switzerland (for qualified investors only) by Eastspring Investments (Luxembourg) S.A., 26, Boulevard Royal, 2449 Luxembourg, Grand-Duchy of Luxembourg, registered with the Registre de Commerce et des Sociétés (Luxembourg), Register No B 173737.


United Kingdom (for professional clients only) by Eastspring Investments (Luxembourg) S.A. - UK Branch, 125 Old Broad Street, London EC2N 1AR.


Chile (for institutional clients only) by Eastspring Investments (Singapore) Limited (UEN: 199407631H), which is incorporated in Singapore and is licensed and regulated by the Monetary Authority of Singapore under Singapore laws which differ from Chilean laws.


The afore-mentioned entities are hereinafter collectively referred to as Eastspring Investments.


The views and opinions contained herein are those of the author on this page, and may not necessarily represent views expressed or reflected in other Eastspring Investments’ communications. This document is solely for information purposes and does not have any regard to the specific investment objective, financial situation and/or particular needs of any specific persons who may receive this document. This document is not intended as an offer, a solicitation of offer or a recommendation, to deal in shares of securities or any financial instruments. It may not be published, circulated, reproduced or distributed without the prior written consent of Eastspring Investments. Reliance upon information in this posting is at the sole discretion of the reader. Please consult your own professional adviser before investing.

Investment involves risk. Past performance and the predictions, projections, or forecasts on the economy, securities markets or the economic trends of the markets are not necessarily indicative of the future or likely performance of Eastspring Investments or any of the funds managed by Eastspring Investments.


Information herein is believed to be reliable at time of publication. Data from third party sources may have been used in the preparation of this material and Eastspring Investments has not independently verified, validated or audited such data. Where lawfully permitted, Eastspring Investments does not warrant its completeness or accuracy and is not responsible for error of facts or opinion nor shall be liable for damages arising out of any person’s reliance upon this information. Any opinion or estimate contained in this document may subject to change without notice.


Eastspring Investments (excluding JV companies) companies are ultimately wholly-owned/indirect subsidiaries/associate of Prudential plc of the United Kingdom. Eastspring Investments companies (including JV’s) and Prudential plc are not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.