Parenting Tips
January 2025

Written by: Certified Children’s Financial Literacy Instructor Miranda Lee
Children growing up during the pandemic have had limited opportunities to go to school and even less chance to go shopping. Many parents are concerned that their children may be missing out on important experiences and are troubled about how to provide “nourishment” for their children’s minds.
Recently, a friend mentioned that her 8-year-old daughter has learned to shop online by herself. Not long ago, she bought a large quantity of stationery and books from an online bookstore, using her parents’ online payment platform. During the purchasing process, the daughter initially intended to buy only two storybooks, but she was attracted by the incessant pop-up ads and promotions, inadvertently adding many extra “wanted” items to her cart.
Indeed, adults occasionally experience “wanting syndrome,” being tempted by the appearance of products and advertisements, leading to impulsive spending. For children with weaker financial literacy, it can be easy to mistakenly believe that online shopping is “zero burden” as long as their parents handle electronic payments, creating a consumption model where “if you want it, you can have it.”

How to Cultivate Correct Spending Habits?
Research shows that parents’ attitudes toward money and their financial habits directly influence their children’s financial perspectives. Therefore, “role modeling” is crucial. Parents should allow their children to observe their spending processes, experiencing how they face the temptation of “wants.” Before shopping, they should ask themselves three questions: Is it worth the money? Do I already have something similar? Am I going to use it regularly? When parents have clarity in their minds, they can naturally avoid impulsive spending.
To incorporate learning into shopping, I first allow my children to select the items they need. The payment process becomes a great opportunity to teach them about “financial literacy.” I encourage them to review their shopping cart to identify what is a “need,” considering the value and practicality of the items. I remind them that while fulfilling “wants” can satisfy desires, it’s essential to assess whether it’s a “need” that should be purchased immediately and whether they should use their own allowance to cover the cost. This approach directly requires them to take money from their wallets to pay. As a result, children become more cautious, hesitating and struggling with the decision of “to buy or not to buy,” which can be quite amusing.
Encouraging children to use physical money helps them understand that items must be purchased with money and cannot be wasted casually.
Parents’ use of money serves as a reflection for children in establishing their financial perspectives. Therefore, setting a good example is very important, making the most of everyday opportunities. The concept of “wants” is endless, while money is limited; thus, we must think carefully before consuming, distinguishing between “needs” and “wants,” and living within our means. Especially during the pandemic, teaching children to be grateful and content is the most valuable financial wisdom we can impart to them for a lifetime.