Parents often have money questions, both big and small.

Our recent KiasuParents Huddle webinar was about teaching children to manage their money well.

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 tackles some tricky questions asked during the webinar!

Question: Is it OK to reward kids with money for good results?

Doing well in school is part of your child’s responsibility. Just like you go to work — you don’t get a bonus every time you show up on time, right?

So, if your child gets good grades, that’s them fulfilling their duty. No need to pay a ‘salary’ for that.

But if they did extremely well, way beyond your expectations, then a small one-time incentive is fine. Think of it not as payment, but as a little celebration. Like: “Wow, you really worked hard, I’m proud of you. Let’s mark this moment.”

The key is this: daily responsibility should not come with cash rewards. Extraordinary effort? Sure, a small incentive to celebrate.

This way, kids learn that hard work is its own responsibility, and exceptional effort gets noticed.

Question: My daughter in Primary 3 has a friend who has asked to borrow money repeatedly. My daughter thinks I’m not being kind by saying no. Please advise.

Does your daughter already have a simple money management system?

If not, this is the “3 Money Jars” savings system that I recommend for children:

1. Save jar → for future goals, like a bicycle
2. Spend jar → for daily spending, as well as small treats like snacks
3. Share jar → for helping others (gifts, not loans)

After your daughter has set up this system and started using it, she may come to you again to let you know that her friend has asked to borrow money.

Now, you can say to her: “Use your jars wisely. If you want to be kind, you can give a small amount from your Share jar.”

At the same time, you should also teach your daughter that being too kind can hurt. Say to her: “If your friend keeps borrowing, and you keep giving, it may do more harm than good. Your friend might become dependent, and that doesn’t really help them in the long run.”

What is the right way to help? Let your daughter know that she is too young to carry this responsibility on her own. Instead, adults can find better solutions together. If this happens very often, she can let you know, and you can talk to your child’s teacher for advice.

Question: How do I teach my child the value of money?

You want your child to understand that money doesn’t come easy, but it can go easily. To do this, you can let them earn some cash through small tasks at home, such as:

• Washing the family car
• Tutoring a younger sibling with schoolwork
• Checking supermarket offers and clipping coupons. The savings they generate can be theirs

Once your child has earned some money, you should also let them experience spending consequences. This is when your child decides how to use their money; if they spend it all at once, they’ll quickly see how money can disappear.

You can also have regular money conversations, where you reflect together. At the end of the week or month, talk about what they’ve earned, what they’ve spent, and what they’ve saved.

Ask: “Did it feel easy to earn? Did it go fast?” 

This act of reflection builds respect for money, and encourages smart financial habits in the future.

A Message From Mr Money

I’ll admit, when I first became a grandfather, I pampered my grandchildren with lots of wants, like snacks, toys, and little surprises. Until one day, my daughters confronted me: 

“Daddy, you never pampered us when we were small. Don’t you dare spoil them now and undo all the money lessons you taught us, and wanted us to pass on to our children, your grandchildren!”

That pierced my heart. It made me realise that if I keep giving in, I’ll confuse the kids and undo years of effort. From then on, I decided: Ah Gong must walk in sync with the parents.

And so, I live by my Grandfather’s Golden Rule: Save before you spend, invest before you indulge, and always set an example worth copying.

That’s why I’m so excited about our Know Your Money workshop on 4 October 2025. It’s specially designed for kids aged seven to nine. Through games and activities, they’ll experience money lessons. And parents, you’ll also pick up a thing or two as you watch your children’s money habits unfold in real time!

Register now to save your slot: only 25 spaces available!

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