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Amanda Sheppard

A study conducted by the University of Cambridge in 2013 concluded that financial habits are established in children by the age of seven. Over time, these habits can become ingrained and carry into our adult lives. The researchers argued for making financial education an essential component of the British national curriculum.
While the Cambridge research is firmly rooted in British contexts, there are lessons for children across the world.
Murray Forest, Western co-principal of primary at Yew Chung International School of Hong Kong (YCIS), explains financial literacy as “children having the language to be able to understand how money is used, and how it can apply to themselves”.
Jeremy Power, head of Grade 11 and teacher of humanities, theory of knowledge and career studies at Canadian International School of Hong Kong (CDNIS), echoes this definition, explaining that he sees adequate financial literacy as “preparing individuals to make informed decisions around their finances and plan for their future in order to make sound financial decisions”.

At YCIS, students are introduced to the concept of money in early childhood education. “Once in primary school, students begin to explore global currencies, earning and spending of money, balancing budgets, and forward-thinking financial planning,” explains Forest.
At Malvern College Hong Kong (MCHK) and Malvern College Pre-School Hong Kong (MCPS), financial literacy begins informally in early childhood. Approaches to learning are creative, ranging from singing to storytelling and reinforcing knowledge through crafts.
In later years at MCHK, the curriculum encompasses an understanding of financial concepts and money management, as well as social and consumer awareness, creating opportunities for knowledge of these topics that can be enhanced as students progress in their education.
“Even our pre-nursery children, aged two to three, are encouraged to handle money during discovery time, allowing them to engage with and understand basic concepts of currency in a tactile way,” explains Emma-Jane Ritchie, principal of MCPS’ Island West campus. Students are encouraged to make donations to the World Wildlife Foundation, “which introduces them to the idea of using money for goodwill and giving back to the community,” she adds. “This sets the stage for more structured financial literacy lessons introduced in K1 and K2, and ensures that children develop a healthy relationship with money from a very young age.”
One of the fundamental ways that financial literacy is taught in schools is through real-world and situational examples. At YCIS, Forest explains, students are encouraged to bring in coins from home and explain their understanding of them and their value in a show-and-tell: “We also take them on a trip to stores in Festival Walk to make a purchase themselves, afterwards reflecting on what they bought, how much it was and what change they had left over.”
CDNIS also adopts a wide range of real-world examples. “Some of the more obvious connections include calculating total cost and change given for cash transactions in real and simulated markets in Grade 2, or preparing a budget for a class party or determining the costs for the upkeep of a pet. We find that the more real-world the scenario, the more ‘sticky’ the learning is for our students,” says Natalie Ross, leader for innovation in mathematics and science for the lower school.
This philosophy continues into the senior school. Kenneth Tang, business management and economics upper teacher, explains that senior students have opportunities to “research and look at publicly listed companies’ annual reports to assess their financial performance from a profitability and liquidity perspective, adding that they also learn how to prepare cash flow forecasts and budgets for businesses. Tang describes these skills as not only valuable, but also transferable.
“Ontario updated its curriculum in 2020, for students to build their skills and knowledge about the value and use of money, to learn how to manage finances responsibly, and to develop a greater awareness as consumers and contributors in the local and broader economic system,” explains Ross.
At MCHK, students are taught to prepare for making smart choices for their future through simple finance-based tasks, ranging from saving for a toy to making a charitable donation.
A particular point of pride for the Malvern schools is the launch of an initiative called the Malvern market. “In this interactive experience, children role-play as shopkeepers and shoppers, allowing them to practise spending and handling money in a fun and practical way,” explains Ritchie. “This hands-on learning not only fosters enthusiasm but also helps lay a strong foundation for understanding financial concepts and the process behind making transactions.”

While formal education and guidance through real-world examples can help to formulate young minds’ approaches to financial literacy and money, this knowledge is further cemented at home. MCHK and MCPS recommend parents support students’ financial literacy by encouraging open dialogue at home around money and finance, and including children in financially oriented everyday activities. This can range from discussing the value of money when shopping as a family to inviting children to take part in budgeting for a family trip.
“Encouraging children to save for specific goals or teaching them to differentiate between needs and wants can reinforce concepts learned in school,” Ritchie says. “By maintaining an ongoing dialogue about finance, parents can help their children develop confidence and comfort around money, laying the groundwork for responsible financial habits that will benefit them throughout their lives.”
Similarly, at YCIS, Forest recommends parents have “regular conversations with their children about how much things cost, and possibly give them a small amount of money every once in a while to let them decide what they would like to buy with it”.
CDNIS encourages parents to increase visibility of their own moneymaking decisions – from the choices behind saving and investing to donating – to inspire children to make financially sound choices. In addition, Ross says, parents can consider giving pocket money to children to help them plan, save and make decisions about how it could be spent. “Then there is the practical skill of comparing prices in markets and shops to determine whether an item is reasonably priced or to identify which rate offers the best value.”
Ross’ colleague Power adds that parents can encourage reflections on discussions in school. “When families are doing goal setting themselves, you can provide kids with a chance to hear about the planning process and explain wants versus needs. Discussion of real-life decisions to build understanding could be a big help.”


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Parents discussing their own moneymaking decisions can inspire children to make fiscally sound choices – and giving them pocket money can help


How international schools are preparing students to make the right financial decisions

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Parents discussing their own moneymaking decisions can inspire children to make fiscally sound choices – and giving them pocket money can help

Parents discussing their own moneymaking decisions can inspire children to make fiscally sound choices – and giving them pocket money can help