The mid-year marks a time of celebration for mothers and fathers. Beyond the bouquets and family meals, it presents a moment for reflection on the profound, often unseen, labour of parenthood. For parents working at the forefront of finance, one might assume that teaching their children about money is a straightforward task. Yet, the reality is far more nuanced.

Raising children to be financially literate is as deeply human as it is, no matter the parent’s job – the challenges, the workarounds, and the moments of learning for both parent and child in imparting nuggets of financial wisdom to the young minds.

We spoke with the leads from the Endowus Client Experience team, Joyce Liu and Brandon Lee, each equipped with over a decade of experience guiding clients in building wealth, a journey they now navigate with their own children.

Among the interviewees is also Dominic Ong, Chief Financial Officer, who manages money around the clock, both for Endowus and for his kids at home. And lastly, we hear from Serene Chew, Head of Legal & Regulatory Affairs, whose knowledge of the industry is as intricate as the regulations can go.

Their collective experiences paint a vivid picture of parenthood today, where financial literacy is not just about dollars and cents, but about values, boundaries, and their hopes for the next generation.

Setting boundaries in a digitalised world

For children today, money is often an abstract number on a screen. Recalling the transition to digital payments years ago, there were concerns by parents about how they could teach the value of a dollar without physical cash.

The expenses of Dominic’s teenage kids are managed digitally by him and his wife. The couple entrust each of them with a debit card and credit their allowances weekly. He intentionally chooses to top up their cards regularly rather than automating the process, a decision best reasoned by a recent experience.

One of his children had received an extra allowance for an overseas trip. However, upon return, the surplus funds had been left in the same digital bank account, which was blended with her regular allowance. 

"She spent more than what she had," he recalled, "because it was hard to differentiate which funds were hers to keep and which were surplus funds from the trip." 

Boundaries help children grasp the concept of money and its scarcity, hence the importance of prioritising their needs and wants. The trick to do it, according to Brandon, is to get them to focus by distilling the options for them, such as choosing from three toys instead of an entire shop, the dad of a 5- and 3-year-old shared.

Even then, parents should not expect children to get it within a few attempts. "Do they truly understand boundaries though?" Serene quipped, acknowledging that building healthy spending habits in her kids is always a “work in progress”, especially with her kids still at a young age of 7 and 3 years old respectively.

The incident for Dominic highlights a delicate balance all parents must strike: granting autonomy while establishing clear boundaries, especially when money is managed digitally. He recently helped his children invest a portion of their savings in their individual Endowus Flagship Portfolios, in the process offering them the choice to select their own risk profiles. It is an exercise in ownership, giving them a tangible stake in their own financial futures.

The young ones are not the only ones who have gained something in this process. Joyce reflected that parenthood has been a journey of learning to say “no,” even when her instinct is to provide the very best for her child. It’s a sentiment echoed by Dominic, who noted that the crucial lesson of "delayed gratification cannot be taught if you always give them what they want, as soon as they ask for it.” The parent's resolve is as much a part of the lesson as the child's understanding.

Getting creative with limited time and money

It is probably safe to say that every parent grapples with time and money. For Brandon, the choice is clear. An annual pass for the in-park experiences at Mandai Wildlife Reserve offers far more than a quick stop at the gift shop. 

"The ROI of experiences is very high," he laughed. His children bring up their visits for days on end, the memories and shared moments compounding in value long after the day is over. "Experience is infinitely more valuable,” he pronounced.

Joyce, a mum of a 5- and 1-year-old, shares a similar view, noting the observable leaps in her older child’s development after every overseas trip. These trips were not just vacations; they were immersive classrooms that fostered curiosity, adaptability, and a broader worldview. 

"Kids need connection," she shared, "but there is no quality time without quantity." The challenge, as all parents know, is the scarcity of time.

With limited hours in the day and budgets to maintain, how can parents afford these invaluable experiences? Brandon sees this constraint as a teachable moment about the scarcity of money itself. And for himself, it is also a learning opportunity to get creative with time and money. Applying the concept of “dollar-cost averaging”, he teaches his children that although they may not be able to buy all their stuffed toys in one go, they may be able to add to their collection in subsequent visits. 

"Experiences like going to the wildlife parks may seem like an additional expense, but also an investment," he explained. "Observe what brings joy to your children, and be creative in terms of how you spend your time and money to give them the best experience within what you can afford."

Financial literacy teaches more than money habits

Ultimately, the goal of teaching financial literacy extends far beyond balancing a budget. It is about equipping children with knowledge while modelling the values that will guide their decisions. Parents can only lay the foundation; they need to then learn to trust the process and allow their children to flourish in their own creative ways.

Sometimes, the lessons land in surprising and profound ways. Serene was taken by surprise when her daughter, a fan of Taylor Swift, articulated a keen understanding of money's power. Witnessing the global fanfare of the Eras Tour, she understood that money opens up choices, giving people the freedom and comfort to make decisions that bring happiness. 

The lessons can also blossom into acts of compassion. Joyce’s son, who can recite by heart the concepts of "spend, save, invest, give" from the children’s book "Bull & Bear Learn Piggy Banks' Golden Rule", recently put this knowledge into practice. He took the savings from his own allowance and contributed to a donation drive at his school, extending the value of his money beyond himself.

For children, understanding money is more than just a lesson in spending and saving. It is intertwined with the memories they forge with their parents, the character they build, and their growing understanding of the world. It’s about realising that the wisest investments are often intangible and take time to realise, creating a legacy of values that will far outlast any monetary inheritance.

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Managing your finances as a parent? Here are some resources you may find helpful:

• Financial planning strategies for new parents
• Building an education fund for your children
• How to plan for your retirement
• How to create a legacy plan