Ways To Boost Your Child’s Money Confidence

My daughter recently turned 11, and for the first time, I gave her a red packet with cash inside as a birthday present. It’s also the first time she’s genuinely excited to receive a red packet because she’s beginning to understand how money works in the real world.

Why teaching kids about money matters

Teaching children about money is a delicate but important task.

As adults, we play a huge role in shaping how our children think and feel about money - often more than we realise. The way we talk about money, the emotions we display around it, and the habits we model all contribute to the financial mindset our children will carry into adulthood.

As a finance coach, I’ve had the privilege of working with many adults on their money mindset. And in most cases, their beliefs and behaviours around money can be traced back to childhood experiences. Money is often associated with negative emotions of stress, fear, or conflict. 

That’s why, from the time my daughter was little, I made it a point to teach her that money is simply a neutral tool - an exchange for goods and services, not something to fear, worship, or obsess over.

A recent example - from a family trip

The past week, we were on a family vacation in Taiwan, and it turned out to be a great opportunity for some real-life money conversations.

“Mum, I have xx amount of money now!” my daughter said gleefully.  “I don’t know how to use it!”

I smiled...learning how to spend money wisely and intentionally is a learnable skill. As we walked through the night markets, we checked out the prices of snacks and bubble teas. 

“How much is that in Philippines Pesos? In Singapore Dollars? In US Dollars?”

During the trip, we were discussing about spending, saving, and even foreign exchange. It was a proud moment for me to see her curiosity and money confidence/maturity growing - choosing to spend on what she enjoyed and walking away from cute souvenirs (which she didn’t value enough to spend her money). 

This is the same little girl who once wrote to her tooth fairy when she was 6 years old asking specifically for coins instead of notes - because back then, she hadn’t yet learned about money denominations.

And the same little girl who received a special gift from a family friend: a collection of coins and notes from all the countries he had ever visited including Ethiopia, Ghana and Columbia. That gift sparked her fascination with currencies around the world.

Here’s how we can support a child’s money journey

Money truly is a fascinating topic - and as adults, we have the opportunity to help our kids grow into financially confident individuals. Here are a few tips I’ve found helpful when teaching children about money:

Every child is different. Some are natural savers, others love to spend. There’s no right or wrong - just opportunities to learn about a child’s personality and help them to learn about money.

Don’t assume they understand the value of money. If you’ve never talked about what things cost, or what money can (and can’t) buy, it’s not realistic to expect them to just “get it.” These are learned concepts, and they need your guidance.

Keep money conversations going. Create a safe space for your child to ask questions or share their thoughts about money, without shame or judgment.

Keep emotions neutral. Avoid bringing your own fears or frustrations into the conversation. Stick to the facts and keep things age-appropriate.

Don’t use money as a reward or punishment. Instead, let your child learn that money is a tool for exchange of goods and services - not a control mechanism.

Want to dive deeper?

If you’re curious about how to guide your child’s money confidence in an age-appropriate and empowering way, I’ve created a short video series to support you on this journey.

Video 1: Is your child a money hoarder or a big spender?
Video 2: Are you nagging your child to save? Do this instead.
Video 3: Do you use money as a carrot or stick?

You can access the FREE video series here.

I'm curious to learn too...how are you helping your child (or children) learn about money? Or, looking back—what do you wish you had learned about money as a kid?

Share your thoughts in the comments, or tag a fellow parent who might enjoy this post.