How Do You Build Financial Awareness in Children

Posted by Sharannya Mukherji on


We all want to provide for our children, sometimes even when it means living beyond our means. Call it peer pressure or wants, children want us to buy everything from them – from phones to iPads to latest video game. As parents, we do try to discipline them about money, but give up quite soon when faced with relentless demands and emotional blackmail. While taking care of children and nurturing them is most important aspect of parenting, it is also necessary to teach them about the importance of managing money. Kids who are immediately given what they ask for, would not understand the meaning of ‘living within the means’.

How do you do teach your kids about money?

Talk regularly about Money in front of Kids

There is no age to when you can start talking about money in front of the children but do take care to keep in mind the age appropriate information you are sharing with your kid/s. For younger kids, show them the currency. Take them to the grocery shop and read price labels with them. When you give the money to shopkeeper, and buy stuff, kids try to make sense of the transaction that has happened.

Older kids can be told about stock markets, investment measures, etc. Talk regularly about the school fees, how much each toy or gadget costs, talk about how you need to save for a secure future for the whole family, etc. Talk about money with ease and frankness, but do not talk about disturbing financial subjects that may worry your kid. Talk about have and have-nots, and whenever he/she asks for a new toy or gadget, tell them to giveaway a toy as well. This will instil a sense of charity as well in your kid.

Make them earn it

Tell them how hard you have to work to earn, and ask them to earn their allowance as well. While elder kids can be asked to do odd jobs (in the house or in the neighbourhood) to earn their allowance, younger kids can earn it by doing chores around the house. Make a chart of how much each chore would earn them, and pay them accordingly. You can also take away the money from them if they do not complete your chores, or any other work assigned to them, or when they do not behave. Ask the child to keep counting their allowance, so that they strive to earn more by doing good.


Introduce the concept of piggy bank

Even if your kid is older, ask them to save some part from their allowance. If a kid is old enough to have a bank account, open an account for them in a bank. Ask them to manage their money intelligently, and show them how. The younger  kids can put all the money they earn as rewards or get from relatives in this piggy bank. Open it once in a while, and count it with them. Write it where you kid can access it. You can also tell them that if they reach a certain ‘saving target’, you will double the money in their piggy bank or saving bank account.

Spend from their piggy bank

Just like saving the money, introduce your kid/s to the concept of budgeting. Tell your child how much s/he should spend from their piggy bank or account in a given month. Next time your kid asks you to buy something for them, ask them if it is a need or a want. As a parent, the onus is on you to agree/disagree to their ‘need’ or ‘want’. If you do agree, ask them to check their own piggy bank/account. Lend them money if they need more, and you agree. But do not say yes to all their demands even if they have the required amount. Ask them to track their spending as well.

Fun fact:

Piggy banks are named after a type of orange clay called "pygg."


Another way to introduce kids to money is through games like Monopoly, Time and Money, Cashflow for Kids, etc. Not only will they learn a lot, it will also help you to bond with your child. You can give certain coins to your younger child, and ask them to trace it. You can talk about various denominations of these coins and also talk about what all appears on the coin apart from the numbers. Other games such as make believe shop, or an ATM, will also allow children to enjoy leaning about money. As a parent, it is important that you teach your kids the value of money. However, if your kid makes a mistake regarding money, do not reprimand them. Keep room for mistakes, and let them learn from these errors.

Health and hygiene awareness is also as important as financial knowledge. Help your kids learn some healthy habits using Koparo's natural cleaning products!

Children Finances Lessons Money Pocket Money Savings Tips

← Older Post Newer Post →

The Clean Slate

Air Purifiers all natural all natural body wash All Natural Surface Cleaner All Purpose Cleaner Aloe Vera Plant aluminium foil antibacterial antiseptic Appliances aroma Asthma Asthma in children athletics baby care baby friendly baby friendly floor cleaner baby safe baby safe floor cleaner Baby Safe Floor Disinfectant baby-safe bacteria baking soda bedding Best Indoor Plants for Health biodegradable bleach-free Bleaching Blender body wash calm candle candle making Changes Chemical Free chemical-free child friendly Childhood asthma Children Chores Christmas Christmas Crafts Christmas Tree Citrus clean Clean Air clean dishes Clean House clean resolutions Cleaners Cleaning cleaning & society Cleaning Desk Tips cleaning products Cleaning Tips cloth mask clothes coffee stain cornflour COVID-19 covid-19 care Declutter detangling brush detergent dettol Dirty Dishes Dishwash Dishwasher Dishwashing Liquid Dishwashing Liquid 500ml disinfectant disposable mask diwali DIY diy candles DIY Hacks Dog Safe Floor Cleaner dushhera break Easy Peasy Crafts Easy to Care Eco friendly eco friendly home eco friendly swaps eco-friendly gifting ecofriendly environment Experiment fabric conditioner Fertilizers festive season Finances fitness floor cleaner fragrance fresh Gardening gender bias gender inequality gender inequality in family gender inequality in home gift wrapping gifting candles Grape Ivy Greenery hand sanitiser hand wash hand washing handwash Hard Stains hard water harmful chemicals home household chores housework how to clean Indoor plants itching jasmine ketchup Kids friendly kitchen hacks Kitchen Solutions Koparo koparo news Kopraan laundry lavender Lessons life skills lifestyle & wellness Lifestyle and Wellness Lint roller liquid handwash liquid soap Lizol Low maintenance Mask mattress mattress cleaning Microwave Minimal watering plants Mixer Mobile mobile phones moisturise Money Money Plant Natural Natural cleaners Natural Dishwashing Liquid natural disinfectant natural floor cleaner Natural Floor Cleaner India natural handwash Natural Laundry Liquid natural soap natural solutions New New Name New Year no chemicals No Toxins Non toxic cleaning products Non Toxic Floor Cleaner For Babies Non-toxic organic Organic cleaners Organic Dishwashing Liquid Organic Produce organise Organizing Paint parenting pet allergies pet care Pet friendly Pet grooming pet safe Pet Safe Floor Cleaner pet-safe Phosphates plan plant based Pocket Money regular soap Remove Hard Stains resolutions rose safe safe dishes Safe for pets safe handwash safety sanitizer Santa Claus Savings Science Seeds shoe cleaning shoes shower routine side effects of chemical cleaners silver silver cutlery silver jewellery silverware skincare smell Snake Plant sneaker cleaning sneakerhead soap soap bar soft hands Soil surfactants sustainability sustainable sustainable gifting Therapeutic tip for cleaning masks Tips Tomatoes toxic ingredients toxin-free toxins toy cleaning toys Triclosan vegan Vegetables wall Wash your pet water water conservation waterbottle WFH desk white shoes white sneakers White Vinegar