The financial journey for Claudia Tan, five, and her brother Brian, three, began when their parents set up savings accounts for both of them - on top of their Child Development Accounts - when they were born.
"However, it's important that children first know the difference between needs and wants. Needs are things they truly cannot live without, such as food or a house to live in. Wants are things we would like to have but without them, we would be fine. These include the latest smartphone, toy or designer clothes," says Mr Francis Tan, their father.
He also believes that it is important to teach children the concept of opportunity cost.
"I'll allow her to make the decision on whether she prefers to visit the zoo or indoor playground Cool De Sac at Suntec City, and ask her to articulate her reasons," he says.
He believes the decision-making process will go a long way in moulding her thoughts on opportunity cost and in the future, it will be easier to teach her about money management.