10 Tips on How to Teach Pinoy Kids About Money

We know how kids are. I have two kids of my own – a 4 year-old daughter and a two year-old son. All they like to do all day is play. They don’t want to get bored so they always try to come up with things to do. They can be difficult at times when they demand our attention or if they want something from us we’re not doing.

Our kids bring us joys and frustrations sometimes just a few minutes in-between. But whatever we feel about them at a particular moment, we as parents are responsible for their well-being. That’s why we teach them all that we know to help them lead better lives as they grow older.

Children are Hungry to Learn

One of the things we can count on about kids is their love for learning. They’re like an empty bucket ready to hold the things you’ll pour inside. But if we are not careful, we can fail in this aspect. It’s very possible for us to teach them the wrong things. Or we can be at fault for failing to teach them something important. It can be a “sin” of commission or omission.

I have been thinking of these things often because I want to be a good father to my kids. I want them to learn more things than I know. I want them to achieve their dreams. I want them to be successful.

But how can you teach your kids what you don’t know yourself? I believe these are critical aspects of our children’s development. They will ultimately learn from us based from how we act. It wouldn’t be wrong to say they become more like us as they get older.

Developing Good Money Habits

Teaching our kids about money is one of these important lessons. If you agree, then you probably know how money habits can shape the lives people live. Those who know how to handle money can use it as an instrument to achieve their goals. While those who don’t know the first thing about handling money create problems for themselves which make their lives a series of miseries to deal with.

I have ten tips for parents who want their children to grow financially literate. My hope is that you find this list useful. And if not, revise it to suit your kids learning progress.
  1. Teach children about money as soon as they learn to count. It’s very important to let kids learn about money at a young age. They will better appreciate learning about money when they have the ability to count them.
  2. Help your children learn how money flows. You can explain in simple terms how money goes in when you earn it, how it flows out when you spend it, how it builds when you save and how it grows when you invest it.
  3. Teach children why saving is important. Saving takes discipline. The earlier kids learn to do it, the more they will be able to practice saving as they grow older.
  4. Take them to a bank to open their own savings account. Having their own savings account will teach kids how to save on their own. Give them a passbook where they can see how their savings accumulate over time.
  5. Help them easily identify needs, wants and wishes. It’s important for your kids to realize that you cannot afford everything. There’s a limit to the things that you can buy. Help them identify and prioritize spending on their needs over their wants and wishes.
  6. Teach them how to spend wisely. When your kids start receiving allowances, coach them on how to properly save a portion and spend the rest wisely.
  7. Use shopping trips to teach them how to save. Going to the grocery store or shopping malls with your kids can be learning experience. Educate them on the techniques you use to get the most for less.
  8. Explain to them why borrowing is expensive due to interest payments. Teach your kids, as soon as they can understand, how borrowing can do more harm than good. Show them how much you pay on interests due to borrowing. Help them know how to avoid getting into debt.
  9. Educate them on how to evaluate advertised products. Give your kids some knowledge of how advertising tries to lure you to spend. Equip them by teaching them how to analyze if a product is worth buying or not.
  10. Schedule a time to talk to them about finances. Talking to your kids on a regular basis gives them time to think about the things you try to teach them. They will be able to prepare questions if you have a regular talk with them about money. It will also tell them that this is really important matter and that they should take the lessons seriously for their own benefit.