Parents often have money questions, both big and small.

Last year, we held a KiasuParents Huddle webinar about teaching children the money lessons that they need for life. You can preview this session on YouTube, or purchase the full recording.

One of our webinar panellists was Ernest Tan, better known to our readers as Mr Money. He is the founder of Jopez Academy, the author of Raising Financially Savvy Kids, and a Certified Financial Planner with over three decades of experience. A father and grandfather, he loves teaching families about financial wellness, and he has conducted financial literacy workshops for students at Hwa Chong Institution.

Below, he reflects on a question that is commonly asked in Singapore: How can parents save more money? 

With the latest inflation forecast on our minds, this is a good time to read his advice!

If you’re a parent in Singapore today, inflation doesn’t need an explanation. You feel it everywhere:

• Cai png ("mixed vegetable rice") costs more, even with fewer dishes
• Kopi (coffee) prices quietly creep up
• School fees and expenses like uniforms and books increase year after year
• Enrichment classes now cost almost as much as adult courses

Parents have asked me: “How can we save money to invest during this inflationary period?” 

My answer is simple: Start with habits at home and think long-term, beyond just cutting expenses.

Habit 1: Inflation is a teaching moment

Many parents respond to inflation by cutting down on expenses quietly:

• Less eating out
• Fewer treats
• More “cannots”

But when children don’t understand why, they only feel that their lives have been restricted. Instead of saying: “Everything is expensive now,” try saying: “When prices go up, families must make smarter choices.”

Money lesson: Dealing with inflation is part of life, and not a punishment.

Habit 2: Seek investment opportunities, especially after inflation peaks

When we think about inflation, we often focus on rising prices. But it is also a reminder of why money cannot stay idle for too long.

Historically, inflationary periods have often been followed by strong equity market recoveries once inflation peaks. Using long-term US market data (from the post-war period to recent decades), history shows that:

• After inflation peaks, equity markets have delivered solid average returns over the following 12 to 24 months
• These post-inflation periods often reward investors who stayed patient and disciplined

This matters because it reframes inflation from “Everything is getting worse” to “This is part of a cycle, and cycles create opportunities.”

Making Investments: A Practical Reference for Parents

I like to share this simple guideline with parents: If an investment can generate around 8% to 10% per year over the long term, it is generally sufficient to offset most inflationary periods.

This does not mean inflation disappears. Instead, it means your money is not quietly losing purchasing power while sitting still.

Only in extreme situations, such as hyper-inflation economies, does this rule break down. Those are rare structural crises and not normal economic cycles. This is why investing is not about chasing the highest return. Rather, it is about protecting and growing your purchasing power steadily over time.

How to Talk to Children About Investments

You don’t need charts or market jargon. Try saying: “When prices go up every year, we want our money to grow faster than prices.”

Or: “Saving keeps money safe. Investing helps money grow.”

Use everyday examples, such as:

• Eating at hawker centres instead of restaurants
• Packing food instead of buying daily snacks
• Investing the money that is saved, to grow it for the future

Money lesson: Money has different “jobs” or functions. Saving money protects what we have, while investing money grows what we have.

Habit 3: Eat out less, and be smarter when you do (kopitiam vs mall food)

In Singapore, eating out is part of life. But not all eating out is the same. For instance, a restaurant meal in a mall often includes:

• 9% GST
• Service charge
• Drinks, sides, and desserts

A simple family meal can easily cross S$80 to S$100.

Many parents say: “Die die must eat out,” but Mr Money’s advice is simple: Limit restaurant dining. Choose hawker centres or kopitiams instead.

Here's why. Hawker and kopitiam food:

• Cost much less
• Offer variety
• Make prices visible, which is great for learning comparison

Say to your children: “We choose hawker food because it gives better value.”

Money lesson: Smart spending is about value, not pure convenience.

Habit 4: Cook more at home

Some parents feel that cooking is "too troublesome.” But you don’t need to eat or prepare fancy meals every day. Here are some practical ideas:

• Pack sandwiches, fried rice, pasta, or onigiri for school recess
• Cook one extra portion at dinner for lunch the next day
• Reduce daily snack and drink purchases

When children bring food from home:

• They learn that home food is normal, not inferior
• They see that planning helps to save money

Money lesson: Convenience costs money, while planning saves money.

Habit 5: Higher prices don’t always give better value

When prices rise, children may notice the difference when they ask to purchase something, and are told “No.” 

They may feel unhappy or complain about this at first, but do teach them to ask this question: “Is this worth it for our family right now?”

Use daily examples, such as:

• House-brand snacks vs premium brands
• Bubble tea vs making drinks at home
• One meaningful enrichment class vs several average ones

For Singapore parents, there is a tendency to stack on enrichment classes for our children. But here's something to think about: more doesn’t always mean better.

Money lesson: Think about value and impact for the family, each time you spend.

Habit 6: Don’t stop saving, even if it’s just a little

During inflation, some families stop their saving efforts. Children notice this, and when a family’s savings dwindle, they learn that saving is optional.

Instead, do the following:

• Keep a Save jar for your children, even if it takes a longer time to fill. Do the same for yourselves.
• Say openly: “We save less now, but we never stop saving.”

Money lesson: Saving is a habit, not something you do only when there are leftover funds.

Habit 7: Adjust your kids’ pocket money carefully

As prices increase, parents may wonder: “Should I raise my child’s allowance because everything costs more now?”

There is no fixed answer for this. What matters is whether your children are learning these money skills:

• Planning one’s spending
• Considering trade-offs
• Taking financial responsibility

Instead of simply increasing your child’s allowance, you can try to:

• Encourage them to pack food from home
• Guide them to prioritise what to spend on
• Let them experience real money decisions

Money lesson: Having less money builds better decision-making skills.

Habit 8: Don’t hide your money stress, but talk about it calmly

Children can sense tension even when adults stay silent. Instead of avoiding money-related talk, you can say: “Prices have gone up, so as a family, we need to think more carefully about spending, saving, and investing.”

This does the following for your child:

• Builds trust
• Reduces anxiety
• Encourages cooperation

Money lesson: Children don’t need parents who have it all figured out, but they do need calm and honest role models.

Mr Money’s closing thought

Inflation will come and go, but what stays is what children learn during these periods:

• How money works
• How decisions are made
• How families adapt

When parents model calm thinking, long-term investing, and smart choices, children learn that financial challenges are not something to fear.

Found Mr Money’s advice helpful? Here’s your chance to learn more from him! 

Members of our KiasuParents community can enjoy access to his Financial Parenting Masterclass (worth S$199) at the special price of S$29, with the discount code KSPHUDDLE2604, while slots are available. Find out more about the masterclass, which has long-term benefits for the whole family.

This article is brought to you in partnership with Jopez Academy.