Teaching kids about money may sound off to many but if you don’t some else might do it for you. Did I just hear a yes? Like sparring, you may be from a task, right. Nope because they might be taught differently in making, handling, and multiplying money. Remember, kids are like sponges and you don’t want them to learn inappropriately.
How Did I Learn About Money?
Suan, do you even have kids? None, as of this moment but I was once a kid like you and your kids hehe. And basically, these are the things I wished someone in my family has taught me when I was younger. I was like if only I have known this about money then I would have positioned myself much earlier in a brighter future.
TheWiseGuyPh doing Child Labor
When I was in grade school I can still remember how I collected emptied bottles of beer and other alcoholic beverages. I usually source it from the aftermath of every inuman session of my father and his friends. (They are good providers and not tambays so don’t judge them yet hehe).
Whenever I collected a few boxes, yes we’re talking about boxes because I need to tidy them up prior in selling, then I’ll bring it to a junk shop in exchange of money. Normally, I get like Php 300 to Php 500 that I can add to my savings. Ughh, I feel like I’m a millionaire during those days. And I guess that’s where I also learned about the value of money.
5 Money Lessons to Teach Your Kids
Okay, enough of my story and let’s go to the main topic. By the way, this post is inspired by the “15 Ways to Teach Kids About Money” of Dave Ramsey. I’ve chosen to put only the 5 lessons that can be applied to Pinoy kids. So here they are.
1. Use a Clear Jar to Save Money
Piggybanks are simply cute and kids love it so the question is why then use a clear jar? Well, saving money in a clear jar is pretty visual and kids can easily track their saving progress. They will be more motivated to see their 5 peso coin become 10 pesos, 50 pesos, 100 pesos, and so on which they can use to buy the toys they like.
2. Show them that Stuffs Cost Money
Let them know that things they like to get needs money. So whenever they want a toy, ask them to hand the payment coming from their saving jar. This is more effective than giving them lectures. Like you never get to know how sweet the honey is without tasting it, right?
3. Show Opportunity Cost
Help them to be analytical at a young age by giving them smart choices on how they can use their savings. Show them how they can get bigger deals by saving a bit more instead of getting smaller things bought out of impulse. If your kid wanted to buy a video game for example then tell him that he wouldn’t have much money to buy the cool shoes he also wanted. Give them options so they can learn how to make good financial decisions.
4. Stress the Importance of Sharing
Teach your kids about the value of sharing so they can see how it can help other people. You can help them in picking a charity or church where they can share their savings. This can also help them in learning how to be grateful with whatever they have.
5. Teach them Contentment
Social media is all around and your kids are not spared from the make-believe story everyone is posting. They might also compare whatever they have from what the other kids have in the neighborhood. Contentment starts in the family and you can show them that happiness is not about having the latest gadget or whatsoever.
I believe that the best person to teach your kids about money is you as their parent. You will have the full control of what to feed their minds. Showing money as a tool to get the things they wanted, helping others, and learning how to be appreciative of the things they already have. I wish your kids will learn more about money at a young age. Remember that this is not about you, spending less on what they wanted you to buy for them, but it’s about giving them the early chance of making good financial decisions.
Federico is an electronics engineer, financial blogger, insurance agent, and a certified investment solicitor. A multi-awarded Sun Life financial advisor with clients ranging from lawyers, doctors, engineers, accountants, business owners, company directors, and OFWs to minimum wage earners had sought advice from him in achieving lifetime financial freedom.