Thursday 16 February 2012


How to Teach Children Financial Management?

Idea adapted from Lisa Tong

Now that we have implemented the Children Chore Chart for JN and his siblings and the corresponding Coupon Reward System, what do we do with the coupons that are being exchanged for money? We teach them to save... not just with 1 piggybank, but with 5 piggybanks.

The 3 "S" Lesson:

This provides a very good opportunity to teach the children early in their life the good habits of prudent financial management – what I call The 3 “S” Lesson about Life – namely, Sharing, Saving and Spending.

I am going to give each child 5 piggybanks with the following percentages:

1. S is for Sharing - 30% with the following breakdown:

a. 10% to God – As Christians, this teaches Joshua to honour God with his “first fruits”.

b. 10% to parents – As Chinese, this teaches Joshua in an early age the Chinese concept of filial piety, something not many Europeans could comprehend.

c. 10% to charity – This teaches Joshua the concept of sharing with the less fortunate.

2. S is for Saving - 20% – This teaches Joshua the concept of being thrifty and saving up for rainy days.

3. S is for Spending - 50% - This teaches Joshua the enjoyment of spending within his means after taking into account the other two “S”s.

Additional Information:
You will notice that I have arranged the piggy banks in a row in the order with God first and Spending last. This is in accordance to what the Bible teaches and commands us to do:

Honor the Lord with your wealth, with the firstfruits of all your crops; then your barns will be filled to overflowing, and your vats will brim over with new wine. - Proverbs 3:9-10

This is a personal testimony that I have experienced since I started my working life some 12 years ago. And God has always kept His promise with giving me enough to share with others. Not one day do I have to go out to beg or borrow money from others. I want to share my testimony with Joshua and the children, that they will always grow up trusting God to provide financially, if they honour God and put Him first in their life.

Now that Joshua is older and started wanting me to spend money to buy things for him, it is also a good time for me to introduce this activity to him, when I am back home in Denmark.

If it is too overwhelming with 5 piggybanks, you can also start with 1 piggybank, and work it up, instead of trying to achieve this lesson overnight.

Btw, I have found a brilliant piggybank that compartmentalizes it into different compartments:


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