Taoke (Business)

The Most Effective Way to Teach Your Kids the Value of Money

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Parents only want the best for their children. Many parents try to give them the best education and the best extracurricular activities.  But these will mean almost nothing unless we teach them the value of money.

We want them to be independent as they grow up so that they will know how to handle their money well.  It will be a waste if they earn a lot and just spend everything, under the notion that more money will always come.

We already can start to teach our kids the value of money when they’re as young as 3 years old. At that age, they want us to regularly buy toys. We may start teaching them that they can’t have it all and definitely not immediately. We need to impart to them that money isn’t easy to make and we need to save first before spending.

The very first item that we usually give them to learn how to save is a piggy bank, right? Today, let us turn that piggy bank into 3 jars.

Collect empty jars and decorate them with your kids. Make it fun. This is a great bonding opportunity for you and for your children. Label each jar with the words, “save,” “spend,” and “share.”  Whenever they receive money, ask them to split the cash into 3, and shoot them in each jar.


The save jar is for long-term savings. This money is intended to be invested in order to earn more money.  We will only use this in time of great need. For your kids to be able to understand the concept interest gain, you may give the interest earned each month. This way, they will actually see that their money is growing and for sure they wouldn’t want to touch it. It’s up to you how much interest you will pay. May we suggest you pattern it after the usual bank interest for some added real-world learning.


The spend jar is for the things that your kids want to buy. With this jar, we can also teach them the importance of goal setting.

Ask your kids to identify what they want to buy and to check the price. Teach them to canvas the store and look for the best price. Target the item and set a date on when they want to buy it. This way your child will learn to be patient and to avoid impulse buying.

Typically, when we reach the accumulated amount and are ready to buy the item, we don’t like it anymore.  Or sometimes, we want a different item that is way cheaper than the original item.  In this case, you may put the savings from that purchase into the save jar.


In the share jar, we place money to give to other people who are in need. In the process, we also teach our kids to share their blessings with others. They can use this money to buy food for street children or donate it to the church community or a charitable institution.

It’s best to start this habit as early as you can. The 3-jar saving concept is just the first step in teaching our kids the value of money. In addition, you may allot a specific time once a week or once a month to check on their jars and give them more valuable lessons about money.

As they grow older, they may increase the number of jars depending on what they want to spend on.  For example, they may have a jar for vacation, education, a car, and so forth.

To help them develop the habit of saving, start them young, and most importantly, lead by example.


Need more financial advice? We share the secret to getting a private hospital room amid the pandemic here. For the vital steps to be financially ready for 2021, you can read on here and for the best financial advice on what do with your ang paos, check out the article here.

About the author

Sheila Ong is a legacy architect.  She helps Chinoy families plan and design their financial homes by not only creating a strong financial foundation but also peace of mind, allowing families to do what matters most, which is to have more time to spend with each other. It’s her passion to empower each Chinoy family to create a legacy of love from one generation to the next through proper wealth management. As a naturally shy person, she evolved into becoming a public speaker driven by her advocacy. She has transformed many lives, including the lives of her team of financial advisors and the lives of about 400 families who are now financially secure.  Sheila also values family time as she is a full-time mom to her son.

If you want to know more, you may send her an email at sheila@legacyoflove.info. For more information, you may also check out her website, https://legacyoflove.info/ and Facebook page, https://www.facebook.com/legacyoflovewithsheila/.


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