Financial literacy for children

Introduction (0:00-0:45 seconds)

Harshika: 

“As parents, we all want to prepare our children for the future. But with the world becoming more competitive every day, having the right values early on is more important than ever, especially when it comes to money. Today, I’m here with Alison Chan, CEO and co-founder of Solomon Learning Group, who has worked with over a hundred thousand students from over three hundred schools in Hong Kong, to talk about why financial literacy is more than just managing money—it’s about building strong foundations for life.”

Alison: 

“Exactly, Harshika. Financial literacy is a cornerstone of child development. It’s not just about learning how to manage money; it’s about understanding responsibility, fostering independence, and even developing emotional intelligence. Financial decisions, after all, are closely tied to values and priorities. The earlier we can introduce these concepts to children, the more confident and capable they will be in navigating not just their financial futures, but their personal and professional lives as well.”

Tip 1: Earning Through Chores (0:45-1:45 minutes)

Harshika:

“I’ve noticed that when children earn their own money, they seem to take more pride in how they spend it. What’s your take on chores as a way to teach kids about earning?”

Alison:

“That’s a great observation, but before we discuss earning money, it’s important that children first contribute their fair share of regular housework. Tasks like tidying their room, making their bed, or setting the table should not be tied to financial rewards. This teaches them responsibility and the importance of contributing to the family.

Once these responsibilities are established, we can introduce extra chores for earning money. In Hong Kong, extra chores might include doing the dishes, helping with recycling, or organizing storage spaces. These tasks allow children to earn money based on the effort and time they invest.”

Harshika:

“So how can parents structure this in a clear way for their children?”

Alison:

“A weekly chore chart is a great tool. One section can list the regular chores, and another can focus on extra, paid tasks. For instance, doing the dishes might earn them $10, while helping to organize storage spaces or assisting with grocery shopping could earn $20. This helps children see the direct relationship between extra effort and reward, instilling a strong work ethic.”

Harshika:

“And it also teaches them that not everything in life is tied to money, right?”

Alison:

“Exactly. Regular chores teach children that some responsibilities are simply part of life. But extra effort can be rewarded, helping them understand the connection between initiative and financial independence.”

Tip 2: Budgeting Basics (1:45-2:45 minutes)

Harshika:

“Budgeting is another area where kids can struggle. How can we teach them to manage limited resources, especially when they’re so used to instant gratification?”

Alison:

“Budgeting is essential for teaching children how to manage resources and make informed choices. A budget is essentially a plan for how to use what you have. It involves distinguishing between needs and wants.

A great example is planning a family activity. Let’s say you give your child $200 to manage for a family picnic. They’ll have to allocate that money for food, activities, and any extras like snacks. If they overspend on one thing, they’ll have to adjust other areas. This teaches them trade-offs and prioritization.”

Harshika:

“How can parents make budgeting part of everyday life?”

Alison:

“A simple way is to involve children in weekly grocery shopping. Give them a portion of the budget and let them decide how to spend it. This teaches them to make choices based on priorities. There are also apps and budgeting charts that help visualize how resources are allocated, making the concept more engaging.”

Tip 3: Saving and Generosity (2:45-4:00 minutes)

Harshika:

“Kids love to spend, but saving and giving can seem less exciting. How do we encourage these habits?”

Alison:

“Saving becomes more meaningful when children understand the goal behind it. Whether it’s saving for something they want, like a toy or a trip, or for future needs, having a goal makes saving tangible. Even saving a small amount, like $10 a week, adds up over time, and children can visually track their progress using jars or digital apps.

Generosity, on the other hand, teaches children that money can also be used to help others. For instance, if a child earns $10 from chores, encourage them to allocate $5 for savings, $4 for spending, and $1 for giving. This small act of giving helps them understand the emotional and social returns of generosity. Letting them choose a cause, such as donating to a local animal shelter or charity, makes the act more personal and meaningful.  Research has shown that children who engage in acts of generosity are more likely to develop key leadership traits, such as responsibility and social awareness, which are essential for guiding and supporting others.”

Harshika:

“That’s a great way to show children that money isn’t just for them—it can make a difference in the world.”

Alison:

“Exactly, Harshika. Giving teaches empathy and social responsibility while reinforcing the idea that financial planning isn’t just about personal gain—it’s about contributing to society.”

Conclusion (4:00-5:00 minutes)

Harshika:

“To recap, earning through chores, budgeting, and balancing saving with generosity are key lessons that help set children up for success—not just financially, but in life.”

Alison:

“Yes, these practices go beyond money management. They teach responsibility, empathy, and independence. By instilling these values early, we help children develop the tools they need to navigate a complex world with confidence.”

Harshika:

“Thank you, Alison, for sharing these valuable insights. I encourage all parents to start these conversations with their children today. There are many ways the team at J.P. Morgan can assist you in your efforts to guide your children and set strong examples. Whether you want to leverage our philanthropic partnerships or consult an experienced wealth advisor, we stand ready to assist.