Can you distinguish between needs and wants? Are you afraid of spending too much and accumulating debt? Financial management may not be taught at school, but it is something that involves responsibility, budgeting and saving that every student should learn.

Children who lack financial management skills may develop poor spending habits, have financial stress and limit their opportunities for education and exposure. To avoid becoming overly dependent on others, it is recommended that students learn it at a young age when they start to learn about numerical concepts.

Here are some effective ways to teach money management skills to students:

• Interactive Games: Use board games such as ‘Monopoly’ and ‘The Game of Life’ to teach budgeting and financial planning in a fun way. Suitable for students aged 5 or above. Older students who enjoy gameplay can try “Financial Football” which is a fast-paced online game combining finance with sports.

• Lectures and Classroom Discussions: It is important to teach students basic financial concepts, such as needs, wants, credits, savings and investment. An open forum can be held to allow students to share their experiences with money.

• Fake Currency: Set up a mock economy in the classroom or at home. When students perform or behave well, they get a certain amount of fake money, which can be exchanged for privileges or items. Students can learn concepts of saving, spending and prioritizing.

• Budgeting Projects: Allow flexibility for students to plan an event, like a field trip or school picnic. Students are to create a budget that includes food, activities and transportation, hence learning how to prioritize spending and adjust based on available resources.