Teaching Kids About Money: From Pocket Money to MPF, Without Raising “Hong Kong Kids”

“Hong Kong kids” — over-reliant, over-pampered — have become a hot topic in recent years. At a child’s birthday party, one mother shared that today’s children lack for nothing material, and parents mostly grant their every wish, breeding dependence. She has started giving her 6-year-old daughter pocket money, letting the child decide how to split it between saving and spending — financial concepts must be instilled young, and children can learn them step by step.

Is Six Too Young to Learn About Money?

Six is not too young: the MPFA has printed a storybook teaching young children to “save for the future”, conveying sound money messages through parent-child reading and in-book games; the MPFA also runs educational activities for primary, secondary and even tertiary students, pitched to their age and learning stage. Money management is an indispensable life skill — children who learn early will know how to manage savings and investments as adults, planning for further study, marriage, home purchase and even retirement: useful for a lifetime.

How Can Parents Lead by Example?

Leading by example matters: parents should regularly review their own finances — spending, saving, investing and giving. MPF itself is a ready-made money lesson:

1. Dollar-cost averaging: MPF contributions buy fund units monthly at the prevailing price; more units when markets fall, fewer when they rise, smoothing the average purchase cost over time and cushioning short-term volatility;
2. Compounding: MPF investments roll up with interest-on-interest, so the earlier you start and the longer the contribution period, the more powerful the compounding.

Teaching a child to split pocket money while reviewing your own MPF investments is the best example a parent can set. To understand how MPF works, visit the MPF education hub.