Written by Martin Zotta & Sascha Lee
Teaching children about the importance of money can be challenging for parents, but it’s crucial for setting them up for financial independence in the future. While it’s essential to convey to children that money alone does not create happiness, they need to know that it provides options and improves one’s quality of life. Learning to manage money wisely is a vital life skill, and like with any skill, the sooner children are exposed to it, the more proficient they are likely to be as adults later on.
Whether you’re in Japan or elsewhere, these practical methods will help your child develop a strong foundation in financial literacy.
Here are six practical ways to teach kids about the value of money:
1. Okozukai – Start an Allowance for Your Children and Let Them Manage It
Giving your child an allowance can be a great way to teach them about money management, responsibility, and the value of saving. But when should you start, and how much should you give?
Many parents give an allowance when their child is around 5 or 6. At this age, children start understanding basic math and can grasp simple concepts about money.
A common rule of thumb is to give an allowance of ¥100-¥200 JPY per week for every year of your child’s age. For example, a 7-year-old would receive ¥700-¥1,400 per week, and a 16-year-old would receive ¥1,600–¥3,200 JPY per week. You can adjust the amount based on your family’s financial situation and what you expect your child to use the money for.
From the outset, you should clarify to your kids whether the allowance is tied to chores or given independently to practice budgeting. You can then encourage them to split their allowance into spending, saving, and giving portions.
Starting an allowance is not just about giving money—it’s about teaching valuable life skills that will serve your child well into adulthood. In this respect, giving them room to make mistakes along the way will help them learn and grow.
Allowing your children to manage their own money will help them understand the importance of thoughtful decision-making, a skill that will benefit them throughout their lives.
Remember that the Nintendo Switch game your child may keep bugging you about costs the same whether you buy it for them or if they buy it themselves from the allowance you gave them. However, you may find that child quickly becomes more thoughtful about spending their money when it’s “their money.” And this is a good thing.
2. Otsukai – Get them involved in Household Errands
Getting your children involved in basic household errands and budgeting is a great way to introduce them to real-world financial decision-making. Keeping the tone positive is vital to see finances as a manageable aspect of life rather than a burden.
You don’t need to overwhelm them with details about bills, but you can explain how household money is allocated to cover essential expenses like groceries, utilities, or family outings. You might take them to the grocery store and assign them a small list with a budget, teaching them to decide based on price and necessity.
In Japan, there is a custom where families send their children on Otsukai’s (おつかい).
Otsukai essentially means to run an errand. Japanese children bring a list of household goods and foods to purchase at their local supermarket. Having your kids do an Otsukai is a fantastic way to gain hands-on learning that reinforces decision-making and price awareness. Price awareness leads them to become savvy shoppers in the future who are considerate of their spending.
There is a popular TV show in Japan called はじめてのおつかい (translates to “First Errand”). It is about little kids going on their first Otsukais. Episodes from the show are now shown on Netflix.
For more mature children, introduce them to recurring household expenses, such as electricity or water, and explain how these services come at a cost. This will deepen their understanding of the value of money and the responsibility of managing it.
3. Introduce the Concept of Earning
A great way to teach children about earning money is by paying them for specific chores around the house. These tasks should go beyond their usual responsibilities. Examples could be washing the car, organizing their closet, or completing a task they find challenging. By doing these extra jobs, children learn that money comes from effort and time, helping them understand the concept of earning.
Paying for special chores also teaches kids responsibility and encourages a strong work ethic. When they realize that their hard work leads to a reward, they begin to appreciate the value of money more. This makes them more likely to save and manage their earnings wisely.
It’s important to let your child choose whether they want to take on these extra chores. This reinforces the idea that earning is a choice, which can help motivate them. Before starting, set clear expectations for what’s required and how much they’ll earn.
4. Introduce the Concept of Giving
Teaching children about giving is a cornerstone of building empathy, gratitude, and a deep understanding of their ability to impact others positively. Learning about giving helps children develop a sense of purpose and connection to their community, instilling values that shape their character for life. It teaches them to look beyond their own needs and consider the struggles and well-being of others, fostering kindness and generosity. For children, these lessons also provide a foundation for managing resources responsibly as they learn to balance saving, spending, and sharing.
A helpful rule of thumb is to allocate a small, consistent percentage of their allowance or savings, such as 5-10%, for charitable purposes, making giving a regular habit.
For families who attend church, children can practice this principle during weekly offerings or special charity drives, contributing part of their own money and seeing how collective efforts make a difference.
Parents can also guide their kids in researching causes they’re passionate about. For example, families might explore organizations like Shine On! Kids, which supports children battling serious illnesses, or Second Harvest Japan, a food bank that aids those facing food insecurity. Allowing children to choose a charity gives them a sense of ownership and pride in their giving. Families might also engage in hands-on activities, such as volunteering at a local food drive or donation event in Tokyo. By seeing the tangible results of their actions, children can connect their giving to real-world impact, making the experience meaningful and memorable.
Let Us Help You Grow Your Wealth
Talk with us today!
5. Help Your Children Sell Their Old Toys Online and at Flea Markets
Online Reselling in Japan
Teaching kids about money can be a fun and practical experience by helping them sell their old toys online through Mercari, a popular platform in Japan. This process introduces them to earning money by selling items they no longer use, giving them firsthand experience handling small transactions and understanding the value of things.
Start by helping your child select toys they no longer play with. Guide them in taking clear photos of the items and creating descriptions highlighting the toy’s features and condition. This will teach them about marketing and help them understand that presentation and communication are critical to successful sales.
Two of the most popular platforms for selling second-hand goods in Japan are Mercari and Yahoo! Auctions. Mercari is a user-friendly app where you can list items for sale, set your price, and ship them easily using its integrated anonymous shipping system. Yahoo! Auctions, on the other hand, allows you to list items for auction or at a fixed price, attracting buyers looking for unique or rare finds. Both platforms make it simple to connect with buyers and handle transactions securely.
Once the toys are listed, involve your child in tracking inquiries and finalizing sales. Show them how pricing works and explain concepts like supply and demand. When the item sells, help them with packaging and shipping, and discuss what they want to do with the earnings—whether it’s saving, spending, or even reinvesting in new items to sell.
Komazawa Olympic Park Flea Market, Setagaya, Tokyo
Flea Markets in Tokyo
Engaging children in reselling unused toys and clothes at flea markets offers valuable financial literacy, entrepreneurship, and environmental responsibility lessons. Participating in these markets allows kids to understand the value of their possessions, practice pricing and negotiation skills, and appreciate the benefits of recycling and reducing waste. In Tokyo, several family-friendly flea markets provide such opportunities.
The Yoyogi Park Flea Market, located near Harajuku, is one of Tokyo’s oldest and most vibrant markets. It features hundreds of vendors and a focus on recycled fashion. Additionally, the Setagaya Boroichi Market, held biannually in December and January, boasts over 700 vendors and a history spanning more than 440 years. It offers a rich cultural experience alongside the chance to buy and sell goods.
While Komazawa Olympic Park and Setagaya Park occasionally host flea markets, their schedules can be irregular; checking local listings or official websites for upcoming events is advisable. Involving children in these markets imparts practical financial skills and fosters a sense of community engagement and environmental stewardship. Here’s a helpful link to flea markets that may be happening near you in Tokyo.
6. Be Mindful of Your Attitudes Toward Money
Your attitudes towards money are crucial in shaping your child’s financial mindset. Whatever attitudes you have regarding saving, spending, and investing are likely to rub off on your children; as we all know, children will often not listen to their parents but model what they do and how they think.
For example, if you have an inherent negative mindset towards money, this can negatively influence your child’s relationship with money. They may grow up associating wealth with negativity or feel conflicted about wanting financial success. On the other hand, if you maintain a positive attitude towards money and view it as a tool for creating opportunities and improving life, your children will likely adopt a similar mindset.
It’s essential to embrace an abundance mindset — the belief that there is enough wealth and opportunity to go around. This perspective promotes healthy financial habits and fosters confidence and ambition in your children. When discussing money openly and positively, discussing your decisions around saving, spending, and investing helps normalize these topics for your children. They’ll feel more comfortable asking questions and engaging in conversations about finances, setting the stage for a healthy, empowered relationship with money and finances as they grow.
By cultivating a positive attitude towards money and encouraging open discussions, you’re helping your children understand that money is a tool to achieve goals, provide security, and create options rather than something to fear or avoid.
Conclusion
Teaching children about money is a process, and the earlier you start, the better equipped they will be to make smart financial decisions. By giving them real-life experiences with budgeting, saving, earning, and investing, you’ll provide them with the tools they need to become financially responsible adults. Whether you’re in Japan or anywhere else in the world, these lessons will serve them well into adulthood.
Need More Advice?
At Argentum, we understand the financial challenges faced by the foreign community. As Japan’s premier locally licensed financial planning firm, we are committed to helping individuals and families achieve their goals. Whether it’s financial planning, investments, life insurance, or real estate, we offer free consultations tailored to your needs. Contact us today and take the first step toward a secure financial future.
Argentum Wealth does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Argentum Wealth Management is licensed through the Japanese Financial Services Authority to give financial advice. The FSA strongly recommends that you only receive financial advice and services from a locally licensed and regulated firm.
Other Articles
Nisso 22 Bldg, Unit 802,
1-11-10 Azabudai, Minato-Ku,
Tokyo 106-0041