Primary 1 - Pocket Money Management 101


Photo credit: The Straits Times



Your child is starting his first day being a Primary 1 student. He will be exposed to new classmates, new teachers, new facilities. A whole new environment. Part of this whole new environment is a whole new experience. Your little one will be able to learn a lot of life skills, part of which is learning how to spend his money (at this age, his pocket money) well. While adults spend money on bills, payments, clothes, gadgets and the like, children also have their own age-appropriate expenses. They like to spend their money on toys, snakcs, games, and other things that kids like to buy these days. And because he is not yet financially prepared or educated, he has no trouble spending money for goods, and will enjoying spending his cash as quickly as he can. Why? Because he’s a kid, of course!


Here are a few tips on how you can teach your child the value of money and how he should spend his pocket money wisely:









A good way to teach your child about money is to explain to them what they are meant for and what they look like. Teach them about coins and bills, what they look like, what they are called, and why they are different from each other. Try to play Monopoly with your children using real coins and bills so your child can start recognizing them already. Not only you can mentor your child about money, you can enjoy playing with them too!






You could start by giving your child pocket money on a daily basis to lower primary children and then extend on a weekly basis for upper primary. This will help your child develop budgeting skills as they will need to manage the money over a long period of time as they get older. When you give kids pocket money, use this time to talk with them about what they plan to do with their money. They will be millionaires in no time!






For the child to learn effectively, you need to give them rewards. Rewards for saving. That’s right. For saving. Not only should you teach your child to spend wisely, you also must teach them to save money for the future. They might just be in primary school, but the earlier you teach someone the value of money, they will be able to know the importance of money, and hence be able to save more.


If your child does not spend money for a while, give him a small reward or prize. You can also make the prizes better the more your child saves money. May it be a new video game, new clothes, toys, or whatever motivates your child, it will be worth it. You can try pizza too!








You are supposed to be your child’s role model. One of the most awesome thing you can do is let your child see that you are saving money too. You can put money in a piggy bank while your child is watching you and tell him that it your savings. This will show your child that saving money is a “normal” thing to do. Most children want to be like their parents, and seeing you do it something will inspire them to do the same. The more you save, the more your child will save! How awesome is that!






You need to use money to buy things. Your child needs to know that. It will be more meaningful and worth remembering if you give your child the money to hand over to that cashier when paying for your groceries (or anything that you went shopping for). Because of our increasingly cashless society (credit cards, debit cards, cryptocurrencies, and others), it is imperative for your child to see money being physically exchanged. This will teach them and help them understand that they don’t get something for nothing (or get something for something else, it’s just the same).



These are just very few tips for you to teach your child about money. You can come up with creative ways for your children to learn how to spend their pocket money wisely. You can make them do chores in the house and pay them, you can show your child to open their own bank accounts, you can play fun games about the importance of saving, or you can treat them pizza when they saved money! Think about other ways. Good luck and may your child be the next millionaire, or billionaire!





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