Parents often have money questions, both big and small. 

In this new column, our guest money coach, Mr Money, shares practical, down-to-earth advice to help you raise financially savvy kids and manage family finances with confidence.

Who is Mr Money? 

Meet Ernest Tan — author of Raising Financially Savvy Kids, founder of Jopez Academy, and financial literacy educator who has conducted workshops for students at Hwa Chong Institution. From financial hardship to millionaire mentor, he now helps families shift their mindset and build lasting wealth together. 

Read on as he addresses this month's question from the KiasuParents community:

"My six-year-old asked me how much money our family makes. Is she too young to know?"

Mr Money’s answer:

Your six-year-old is not too young to start learning about money. In fact, I’m really proud that she is asking you such a question!

You may answer your little one in this manner:

“In our family, we work to earn money so we can take care of important things like food, our home, clothes, your education, and fun activities together. Every family earns a different amount, but what’s most important is how we spend, save, and share the money we have. Shall we learn how to do that together?”

Why shouldn’t we share our exact income with younger kids?

It’s better not to share the exact number yet, and here’s why:

• Big numbers are hard to understand. A six-year-old can’t yet grasp what $3,000 or $10,000 means in real-life terms.
• They may repeat it without context. Kids love sharing what they know — but talking about income at school or with friends might cause unnecessary comparison, confusion, or even embarrassment.
• It can create stress. If your child hears a number that sounds “big” or “small,” it could make them feel either overly secure or unnecessarily worried.

How can we use the family income question as a teachable moment for young kids?

Instead of sharing your exact income details, use this opportunity to introduce core money values and decision-making.

You can say: “We use our money in three ways: we save it, spend it, or share it. We use some money to buy things that we need now, some we save for later, and some we use to help others.”

I always encourage parents to introduce the Money Jar System to young children. This is where they can put their allowance or gift money into three jars:

• Save Jar: For future goals like toys or big items.
• Spend Jar: For small things that we can buy now.
• Share Jar: To help others or give to causes we care about.

It’s also a good time to help them differentiate between needs and wants, with simple words:

• Needs: Things we must have to live (like food, water, a home, school supplies).
• Wants: Things that are nice to have, but we can live without (like toys, snacks, or the latest game).

Example: “We need to eat dinner. We want ice cream. Both are okay — but we choose needs first!”

Above all, a six year old is ready to learn about simple money habits and family values. Use everyday activities like shopping, birthdays, or giving to others to practise the following:

• Choosing between needs and wants
• Putting coins into jars
• Talking about saving for a goal
• Deciding together who or what to share with

What is a better time to reveal our income to our children?

You can share more details when your child is around 12 to 13 years old, and shows maturity by being able to:

• Manage their allowance well, e.g. planning how to use their money across their piggy banks or money jars.
• Handle real tasks like managing a weekly grocery list responsibly.
• Negotiate for more allowance by offering to “work,” e.g. washing your car.

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.