What is money parenting?

The 5 Money Parenting styles: Which one do you follow?

Parenting styles have been found to have a profound impact on children’s development and behaviour. But have you heard of money parenting? When it comes to teaching your children about money, what’s your parenting style? 

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

All parents share the same goal: to see their children grow up to be confident, compassionate adults who are capable of fulfilling their potential while remaining resilient in times of adversity. How we achieve this goal, however, can be wildly different from parent to parent.

Parenting styles are very diverse. Some parents strictly control every aspect of their child’s life from screen time to soccer practice. Others envelop their children with hugs and live and let live.

Where does money parenting come in?

A subset of parenting, money parenting involves educating children about attitudes on money, and teaching them the financial habits they need to help them succeed in life.

Saving money is just the beginning. Money parenting includes teaching children about how to make money, how to spend it wisely, how to invest, as well as how to give back.

The 5 money parenting styles: which one describes you?

The Asia Money Parenting survey was commissioned by Eastspring Investments and involved 10,000 parents from 9 Asian markets. It surveyed their habits and practices involving financial attitudes and money parenting.

To understand them better, we have classified these parents into 5 personas according to: 1) how important they view money parenting to be and 2) how active they are in money parenting.

Interested to know what persona you are? Take our 2-min quiz here, or read on to find out about these 5 personas.


The Freestylers

Freestylers believe that real-life experience is the best way for a child to learn how to manage money. They are confident that their child will figure out everything in their own way and therefore need little guidance about how to handle or manage money.

These parents want their child to understand the concept of what money can buy through their own encounters and experiences, including bad ones. This is all part of growing up and learning about real life. They want their child to spend their own money, buy items for themselves, and learn how much things cost.

Freestylers are most likely to say, “There is no substitute for real life experience. A child has to learn by trial and error. They’ll soon understand how to handle their money.”


The Facilitators

Similar to Freestylers, Facilitators also see real life experience as important. However, they also think that some parental guidance is required in teaching their children about financial matters, so they take steps to prepare their children for the future.

Some of the things Facilitators are likely to do is open a savings account for their children when they are born, or encourage their children to take up a part-time job. Facilitators believe these experiences can help their children become financially self-sufficient in the future.


The Nurturers

Nurturers see money parenting as a serious matter. They devote much time to caring for their children, and providing guidance and clear advice to teach their child proper values relating to money, such as the difference between a want and a need.

They practise what they believe in as well. Nurturers are knowledgeable on financial matters (a large number of them own an investment property), and yet they still educate themselves regularly on financial matters so they can be a better teacher.


The Go-getters

The Go-getters are confident in their financial knowledge, and their ability to pass this on to their child. They also purchase investment products for them at an early age. Their ultimate goal? For their children to be successful money managers.

They actively engage their children with:

  • Lessons of different money management techniques
  • A rewards system when they complete tasks
  • Games that involve money, such as Monopoly
  • Investment concepts and options for their future

The Balancers

Balancers — you guessed it — strike a balance between teaching money matters and learning through experience. They are neither uninvolved parents, nor are they too involved. They’re not demanding, but neither are they uncaring. They are also moderate in their views on the importance of money parenting.

Balancers teach that money is important, but also encourage their children to invest in other facets of life like play. Their children are therefore very familiar with experiences that mix learning and playing, such as education through fun activities and games. It’s all about the balance.

There is no right or wrong money parenting style. No matter what money parenting persona you are, remember that we all share the same goal to give our children the best start in life.

What’s most encouraging is seeing that almost all Asian parents value money parenting. Whatever your money parenting style, the ultimate winner is your children.

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.