Parents often have money questions, both big and small.

Our recent KiasuParents Huddle webinar tackled a topic that many parents in Singapore find tricky: what money lessons should we be teaching our kids, so that they can manage their finances well in the future?

You can preview the session on YouTube, or purchase the full recording.

Our guest coach, Mr Money (Ernest Tan), was one of our webinar panellists. 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 answers the top questions asked during the webinar.

Question: How to teach kids about money?

First, tell your child that allowance is a privilege, and not an entitlement. For money that you give to your child, link it to your family’s effort, by saying: “Papa and Mama worked to earn this money.”

Next, show them the trade-offs: “If you buy a toy today, you may not have money for a snack tomorrow.”

I always encourage parents to introduce the "3 Money Jars" system to young children, around age five or six. This is where children can put their allowance or gift money into three jars:

1. Save Jar: This jar teaches the value of delayed gratification. Money here is set aside for future goals, like a bicycle. The goal is to show that consistent saving leads to achieving bigger dreams. You can get your children to allocate 20% of their allowance or red packet money to this jar.
2. Spend Jar: This jar is for daily spending, as well as small treats like snacks. The goal is to practise making thoughtful choices instead of impulsive purchases. Allocate about 70% of available funds to this jar.
3. Share Jar: This jar is used to help others, support a cause, or do something kind for a loved one. The goal is to teach children that money can be used to help others. Allocate 10% of funds to this jar.

Do try to use physical jars or clear containers. These allow children to see the growth of their money.

What do you do when the Save Jar is full? Bring your child to the bank to open a savings account! Let them hand the money to the banker; this will make them feel that they still have ownership over their money.

Question: How to encourage kids to save money?

To motivate kids to save, try any of these simple strategies:

• “Papa and Mama Bank”: Offer a small interest rate on the amount in the Save jar each week. If you have more than one child, your kids can see whose “bank” is growing faster!
• Matching contributions: Match every dollar that they save with a dollar of your own, to teach them that saving pays off.
• Monthly balance rewards: At the end of each month, count the money in their Save jar together. Give a small reward, like 50 cents or $1 for every $10 saved.
• Quarterly milestone rewards: If their Save jar exceeds a certain amount (e.g. $300) at the end of a quarter, reward them with a bigger prize (like $50).

These methods make saving tangible, fun, and rewarding, while teaching kids to delay gratification and set goals. 

Question: How to teach kids to invest?

Before teaching kids to invest, parents themselves must believe in investing. 

Investing is really about taking calculated risks, not gambling or speculating. If parents don’t invest, or don’t show confidence in growing money, any guidance or strategies suggested to children will not stick.

Children learn by watching what we do. If they see you saving, planning, and investing responsibly, they’ll naturally copy those habits. Even small steps matter: showing them your own investment accounts, explaining why you invest, or involving them in age-appropriate discussions about growing money.

Parents have also asked me this: Are there any “safe” investments for kids or teens? Often, this question is asked when parents don’t fully understand or believe in investing. Or maybe they’ve experienced losses from a bad investment.

Here’s the truth: every investment that teens want to explore is considered “safe.” Not because it’s risk-free, but because teens haven’t yet faced the real consequences of investing. They are still learning the rules and haven’t been “burned” by mistakes.

Investing always involves risk. If you understand it well, you know that risk is necessary. Without risk, money cannot grow.

For teens, the goal is learning and building habits, not chasing quick returns. They have one powerful advantage: time. To give an example, they could start by investing small, regular amounts in low-risk Exchange-Traded Funds (ETFs). Gradually, as they understand the basics and gain experience, they’ll learn to manage risk responsibly.

It's important to teach your teens that investing involves risk, but risk — when managed wisely — is how wealth grows. As parents, your belief and confidence in investing will be the foundation for their learning.

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.