Cultivating Awareness for Financial Well-Being in Kids: A Journey of Discovery

"Oh no, mummy, my laptop screen is broken! Can I have a new laptop to play games?" said Matthew. That very day, Matthew decided he wanted to buy a new laptop. He had been eyeing one for months but did not know the price tag was steep.

His mom helped him figure out how he could learn to save the money for his want.

The First Lesson: Understanding Costs

As Matthew began his quest to save money, his mom took the opportunity to discuss the costs involved. “Matthew,” she said, “do you know how much the laptop costs?”

Matthew hadn’t thought about it in detail. They went to the store and looked it up together and found that the laptop was $600. Matthew’s eyes widened. “So, I need to save $600 to buy it?”

His mom nodded, explaining how important it was to understand the total cost before setting a savings plan. This awareness would help him make better decisions in the future, whether he was saving for a laptop or managing his allowance.

Matthew eagerly learns to set his savings goal with guidance for his favorite laptop.

The Second Lesson: Setting Goals

The saving journey begain with a goal. His mom encouraged him to set a specific savings goal and a timeline to achieve it. Quickly, Matthew set a goal to save $15/week from his allowances which takes him 40 weeks (~10months) to get his dream laptop. This meant that he had to trade his tasty foods from school, and have simple home-cooked food during recess time. Setting this goal turned Matthew’s efforts into a purposeful venture, and he was excited.

The Third Lesson: Making Mindful Choices

After 4 weeks of saving, Matthew started to see his savings grow, but he had to sacrifice his favourite tasty food from school. Soon, he realised saving all his weekly allowance for 10 months was not sustainable as he struggled to resist his desire for his favourite foods.

Matthew was discouraged and decided to pause and reflect with his mother's help. Instead of rushing into a purchase, he weighed his options and chose to balance his goal. He learnt to choose food choices that filled his tummy full instead of spending most of his allowance on snacks. He would then be able to have tasty food from school and save a smaller portion of his allowances. This moment of mindfulness taught him the importance of making choices that align with his values and long-term aspirations.

The Journey of Discovery for a Child begins with Awareness to Success

The experience taught him valuable lessons about costs, goal-setting, and making mindful financial choices. Would Matthew be able to unbox his new laptop and enjoy the fruit of success?

In our ever-evolving world, these skills can empower children to navigate their financial futures with confidence and awareness. Let’s encourage our children to embark on their journeys of financial discovery, just like Matthew, and cultivate a generation that values financial well-being!

As parents and guardians, how do you incorporate financial awareness into your children’s daily lives? Share your stories and tips below!