Here's How You Can Teach Your Kids To Save Money
Let them learn some simple ways—from keeping a piggy bank to budgeting their weekly allowance
It's Christmas season, and soon, your kids will be showered with aguinaldo from their ninongs and ninangs. Take this opportunity to teach them about money—from earning it to saving it. Here are some guidelines to help you out:
1. Teach your kids positive values about money.
Let them know that money doesn't come in an instant. It's something they have to work hard for. Train your kids by giving them money as reward for certain tasks, like doing some chores at home, walking the dog, or watching over their younger siblings. Teach them to be thrifty, too. Let them know that even if you have money, it is not wise to just spend it on whatever they want. Lead by example—if they see you spending money on unnecessary things, chances are, they might do the same thing.
2. Teach them to share.
Money isn't just something you earn and keep for yourself. Teach your kids the value of sharing not only money but also their time and talent. You can let them help out in relief operations for calamity victims, for example. Or let them pick the toys that they no longer play with and donate these to an orphanage. This way, they learn to care for others as well.
3. When your kids are in pre-school, teach them that saving is fun.
Let them experience going to the bank and having their own passbook. This way, they'll be motivated to save money for the things they want to buy, even if it's just as simple as a bar of chocolate from the school canteen.
4. When they're in grade school, introduce them to the concept of delayed gratification.
You can give your kids a piggy bank where they will save money and not touch it until the end of the year. When the year ends, they can enjoy spending it on something that they like. This will motivate them to earn their keep and work for what they want instead of it being instantly handed to them.
5. When they're already in high school, teach them about budgeting.
Give them a weekly or monthly allowance so they will be prompted to budget their money. Clarissa Seriña-de la Paz, co-author of I Wish They Taught Money in High School, shares that when she was still in school, her parents used to give her a small allowance. "Later on, our parents explained that they tried to give us a sense of deprivation in the hope of developing a drive to earn independently," she says. You can impart the same lesson to your kids as well.
6. Teach your kids to invest to achieve financial freedom.
Earning money isn't just about getting a good education in order to get a good job. Let your kids know that they can achieve financial freedom by finding other sources of income other than their day jobs. Teach them the concept of passive income—money that you earn through assets like businesses and rental property.
Read the original article ("What To Teach Kids About Money") in the December 2015 issue of Good Housekeeping Philippines. Log on to summitnewsstand.com.ph/good-housekeeping for more details.
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