Stop the “I Want It” Syndrome: Strategies to Help Your Child Understand the Value of Money
Ever been in a store with your child when they suddenly spot something shiny and declare, "I want it!"? We've all been there. It's natural for kids to want things, but when every trip turns into a shopping spree, it’s time to step back and think about how we’re teaching them the value of money.
Understanding the difference between "needs" and "wants" is one of the most important lessons we can pass on to our kids. It’s not just about saying “no” to the latest toy or gadget – it’s about helping them build a healthy financial mindset that will serve them for life.
Strategy 1: Make Money Tangible
In today’s cashless world, kids don’t see adults paying with real money because we mostly use credit cards or Octopus cards. Kids need to see and feel money to understand its value. Start by giving them a small allowance in cash. When they physically hand over their money to buy something, they’ll begin to grasp that money isn’t unlimited. This simple act can be a real eye-opener and a great starting point for discussions about spending wisely.
Strategy 2: The "Needs vs. Wants" Conversation
The next time your child says, "I want it," take a moment to ask, "Is this something you need or something you want?" This isn’t about shaming them for wanting things; it’s about teaching them to pause and think. Help them categorize their desires into needs (things essential for living) and wants (things that are nice to have but not necessary). Over time, they’ll start to make these distinctions on their own.
Strategy 3: Set Savings Goals
Help your child set a savings goal for something they really want. It could be a toy, a game, or even a trip. The key here is to let them earn and save for it themselves. Whether they do extra chores around the house or receive money as a gift, encourage them to save a portion of it. This teaches them patience and the satisfaction of working towards something they desire, rather than expecting instant gratification.
Strategy 4: Lead by Example
Kids are like little sponges – they absorb everything they see us do. If they see you prioritizing your needs over wants and saving for big purchases, they’re more likely to adopt those habits. Share your own financial decisions with them, like why you chose to save for a family vacation instead of buying a new gadget. These conversations can have a huge impact on how they perceive and value money.
Preparing Them for a Financially Healthy Future
Helping your child understand the value of money and the difference between needs and wants isn’t just about managing their current desires – it’s about equipping them with the tools they need for a financially healthy future. The earlier they learn these lessons, the better prepared they’ll be to make smart financial choices as they grow.
SIGN UP FOR OUR “LITTLE MILLIONAIRE” KIDS’ MONEY MINDSET COURSE
Ready to take your child's financial education to the next level? Sign them up for my "Little Millionaire" course (in Cantonese) this September! This fun, game-led course focuses on building a healthy financial mindset for kids, where they’ll learn:
What is money
Needs VS. wants
The importance of love
The art of sharing
Healthy money allocation, and more
Don’t miss out on this opportunity to set your child on the path to financial success! Sign up today via this link to secure their spot and use my code “Grace” under “Referrer” to get 50% Off!
COURSE Details
DATE: On these Saturdays below
21 Sep
28 Sep
5 Oct
12 Oct
TIME: 2:30-4:30 pm
SUITABLE AGE: 5-10 years old
LOCATION: The Gateway, Harbour City, Tsim Sha Tsui
LANGUAGE: Cantonese
FEES: HKD 800 (for 4 classes, use my code “Grace” under “Referrer” to get 50% Off)
*Completion certificate for those joining 3 classes or more
