Money Mindfulness: Teaching Children the Power of Needs, Wants, and Thoughtful Decisions

At the start of every school year, the bookstore was the place to be. The air was thick with excitement, the aisles bursting with possibilities. There was something magical about the stacks of school supplies – scissors that glinted under the lights, rulers so perfectly straight, erasers unmarked by mistakes, and markers in every imaginable shade. And then, there were the pencil cases – sleek, shiny, and fresh – just waiting to be filled. For as long as I could remember, this was the ritual: picking out the newest, the brightest, the best for the year ahead.

But at the start of high school, everything changed. One evening, my dad handed me ₱2000 (around $80 at that time), and my heart skipped a beat. That was my school supplies money, and I had a mental list ready of everything I was going to buy. But then, with a smile, he added a twist.

“If you’re willing to reuse some of your things from last year,” he said, “you can keep the rest of the money for yourself.”

That stopped me in my tracks. My well-loved but still fully functional scissors, my slightly scratched ruler, and even the stubby erasers and almost-full markers from last year suddenly took on a whole new meaning. Was it really necessary to replace them? I looked at my pencil case, a bit worn but still good. It wasn’t as shiny as the ones in the store, but did that really matter? The thought of keeping some of that money made me pause. Could I make do with what I already had?

Then, I thought about the uniform. While others might have insisted on something new, I didn’t even blink. I had an older sister, and hand-me-downs were a part of life. Wearing her uniform was no big deal. I’d been doing it for years, and I was completely okay with it.

Suddenly, spending money on a brand-new one didn’t seem as important. What did matter was the realization that this ₱2000 could be mine. Not spent on things I didn’t really need, but saved for something that mattered more later.

The excitement of brand-new supplies started to fade, replaced by something different – the thrill of choice, of ownership. My dad’s challenge wasn’t just about school supplies anymore. It was about learning to be practical, to prioritize, and to see the bigger picture. And for the first time, I understood that sometimes, not spending is the real win.

The Value of Money Mindfulness

At that moment, I unknowingly learned a powerful lesson in money mindfulness. It wasn’t just about making choices between new or old supplies—it was about being conscious of where my money went, and why. Every peso had potential, and deciding whether to spend or save required thought. It wasn’t simply about immediate gratification but about weighing long-term benefits.

My dad’s challenge opened my eyes to how being mindful of money, even in the smallest decisions, could lead to something greater. It made me realize that money wasn’t just meant to be spent—it was a tool that, when used wisely, could offer more freedom, options, and control over my future.

As kids grow older, this concept of money mindfulness can become even more powerful. Learning how to assess what’s truly necessary versus what’s just a passing desire can set them up for financial success. The principles remain the same whether it’s making decisions about buying gadgets, clothes, or even bigger things like cars or homes.

They’ll learn that saving and being thoughtful about spending can lead to financial independence and that the habits they form young—being mindful, discerning, and strategic—can help them achieve bigger goals like starting a business, traveling, or even retiring early. Money mindfulness teaches that every small choice adds up, and that being intentional with money is the key to a stable and fulfilling financial future.

Saffi Squirrel Teaches Money Mindfulness

Instilling money mindfulness in children begins with the ability to distinguish between needs and wants. By introducing this concept early on, children will grow up to understand bigger money concepts like the difference between assets and liabilities, allowing them to make informed financial decisions. For example, they may ask themselves, “Should I buy one large house, or two smaller ones so I can rent one out?” These thought processes encourage them to think strategically about their financial choices as they grow older.

At Saffi Squirrel, we developed age-appropriate definitions that are simple for both children and adults to understand. We explain to little ones that needs are "have to haves" while wants are "nice to haves." This makes the concept relatable and easy to grasp.

We also incorporate real-life experiences from our children into our stories. For example, when Alessi was just five years old in kindergarten, she asked us to buy her a digital watch because many of her classmates had one. In our story, Renee's Ginormous Bag, Alessi wanted glitter boots and we used her actual words: “But the glitter boots look so cool, and most of the girls in my class have them.” This highlights how peer pressure can influence children’s desires, and how important it is to guide them in understanding the difference between wants and needs.

Throughout the story, we’ve sprinkled wise words from our character, Saffi, under the banner of “Saffi Says.” One of the core phrases I often use with my children is "needs first, wants second." This isn't just about their physical needs, but it also helps them manage their priorities and time. When they come home from school, I remind them that their needs—homework, eating dinner, and bathing—come first. Once those are done, they can focus on their wants, like watching TV or playing with neighbors. It’s a rule that helps them balance their responsibilities and leisure time.

Being mindful in decision-making requires pausing, stepping back, and asking questions like, “Need it? Stop and think about it.” or “Buying a need? What for? How much?” This mindfulness doesn’t stop at financial decisions—it’s a practice that can improve our everyday lives. It helps us manage our thoughts, become aware of what's going on in our minds, and make choices from a place of clarity.