In this day and age when shopping is at one’s fingertips, it’s easy to lose control and end up with an ugly spending habit and a huge debt hole that can wipe out hard-earned savings. It becomes vital now more than ever that children are taught important money lessons so they can navigate through the lures of consumerism and make wise financial decisions later in life.

Here are five ways you can teach children how to have good fiscal habits:

1. Highlight the importance of waiting

That princess dress that your kid badly wants may be cute on her, but don’t give in too easily. Instead, explain to your child that it costs money to be able to have it, and that she can use her hard-earned allowance to pay for it. Also, talk your child into waiting until tomorrow so she can make a more sensible financial decision. Emphasize the need to save now so you can spend later, like for a family trip or music lessons. This gives you an opportunity to impart lessons on impulse buying and instant gratification.

2. Use a clear money jar to save

Children tend to be visual so they’d get the idea of money multiplying better if they see clearly what they put inside. While piggy banks will still get the message across, clear money jars are far more effective. You can have three jars—one labeled “spending” for small purchases like sweet treats, one for “saving” and one for “giving” or charity.

3. Open a bank account

This is where all the cash from the savings money jar goes. Let your children join you when you open a bank account and deposit what they saved from the money jar. Or, if this is too tedious, as it often is, open a digital savings account instead. Mobile wallet GCash has a feature called GSave, which allows you to open and maintain a bank account with CIMB (a top international bank) straight from the GCash app. This is a simpler alternative that offers interest rate at 3% annually, much higher than in traditional banks. It also doesn’t require a minimum initial deposit to open an account or a maintaining balance to start growing your savings. Kids now are more tech-savvy than ever, so introducing them to the concept of mobile wallets and digital savings early on may be easier than you think. This will also set the tone for their financial skills and jumpstart the habit of saving larger amounts of money. 

4. Give commissions or allowances for chores

To clearly illustrate that money is earned and doesn’t grow on trees, give allowances or commissions for household chores accomplished. This will also teach children early on the value of hard work and spending wisely. But it’s important to note that such pays should be modest, not extravagant—just enough to incentivize children to perform their weekly duties. In this way, they also understand that basic chores require no payment and are part of family life.

5. Set an example

Children are observant and they copy what adults do. To impart important financial lessons, model good spending habits which they will likely pick up when they grow older. The grocery store is a fertile ground for teaching the value of money. For instance, when making a purchase, compare prices and show them how they can save by buying the cheaper but quality products. Be prudent also when using the credit card as they might get the idea that there’s free unlimited money in there.