Now is a Good Time to Teach Kids About Finance

Kids today often know a lot more about what’s happening in the world than we give them credit for, even if they don’t fully grasp the details. Any child old enough to scroll TikTok or YouTube has probably seen headlines about the rising cost of living, exchange rate fluctuations, or heard adults discussing grocery prices, toll hikes, and the upcoming tax season.

Instead of brushing it off with, “You don’t need to worry about that,” why not channel their curiosity into positive conversations about how money works? Talking about family expenses, saving habits, investing, and Life-Centered Financial Planning can help children build financial awareness that will benefit them for years to come.

1. Review your child’s recreation budget.

It’s easy for kids to think money appears out of thin air, especially when they’re used to weekend treats or new gadgets. Show them a breakdown of their own activities — football training, piano lessons, tuition classes, or that new badminton racket they insisted on. Use a simple spreadsheet to track the costs, including upcoming holiday camps or family outings.

If your children are asking for a big trip, like a getaway to Legoland Malaysia or Sunway Lagoon, sit down together and calculate the expenses. Show them how long it might take to save, and encourage older kids with part-time jobs to contribute. They’ll learn that fun requires planning — and that money choices involve trade-offs.

2. Open custodial accounts.

If you’ve been putting aside duit raya, angpao, or birthday money for your kids, consider opening custodial savings and investment accounts in their names. Review these accounts together every few months so they can see how deposits and market performance affect their balances.

Explain how investors who stay patient during ups and downs — such as when stock prices dip — can benefit when markets recover. You can also compare savings versus investments side by side, showing your child how one grows steadily while the other may fluctuate but offer higher long-term potential. Seeing their own money at work can be more impactful than any classroom lesson.

3. Talk about taxes.

Taxes can feel complicated even for adults, but breaking them down for kids can be surprisingly relatable. Explain that taxes pay for services they use daily — schools, clinics, public transport, road repairs, and even local amenities like playgrounds. The next time you shop together, point out the Sales and Service Tax (SST) on the receipt. Or, if you’re paying property tax (cukai pintu), show them how it works.

For working teens, remind them that they’ll eventually need to file income tax with LHDN once they start earning above the threshold. Walk them through filing a basic return online, or share tax-saving strategies you use, such as EPF relief, lifestyle claims, or insurance deductions. This helps them understand the difference between just “doing taxes” and actually planning for long-term financial health.

We’d also be happy to support your family in starting these conversations or opening custodial accounts. Schedule a meeting with one of our Licensed Financial Planners and let’s guide your children toward confident money management.