Steps you can take to raise your family well financially. Help your kids learn good money habits from young! The original version of this article was published on



Many Malaysians grew up in families where it wasn’t polite or common to talk about money. Malaysia’s national household debt of GDP is the highest is ASEAN at 83% as of 2018. Many Malaysians are in credit card debt, repayments of PTPTN education loans are worrying, and more than 300,000 bankruptcy cases last year.

Many parents lack confidence when it comes to teaching their kids about money – at the very time that financial education has become more important than ever. So how can you raise kids who are financially savvy?


Start Them Young

Most financial experts agree that children have a basic understanding of money as early as three. And financial habits are mainly formed by the age of seven, according to a study by University of Cambridge.

Most toddlers could care less about money, but a rewards system that consists of a favorite television show or a tasty treat can help these little ones learn the concepts of money early on. For example, when your toddler displays particularly good behavior, give them a homemade coupon. You can attach the value of a small treat for one coupon and a greater reward for 3-5 coupons. Your child will start learning about saving, spending and delayed gratification before you know it.

As your toddler begins to grow, play ‘store’ to introduce the concepts of trading money for things (just play with items you’ve collected from around the house). If you play with coins this would be a great time to help your child recognize the different values of the different coins.


Budgeting Basics


An allowance is one of the best ways to teach your child to manage their finances well. However you determine your kids should earn their allowance, giving it to them on a regular schedule will help them learn these management lessons rather than sporadic installments. When deciding how much your child should get for an allowance, there are a few things to think about: their age, your family income and what their allowance is meant to cover.

As soon as your kids start receiving an allowance, teach them to budget by prov