As parents, it is our responsibility to teach our kids the proper way of handling finances. For some, this topic is too much of a taboo, especially for those who believe that money matters shouldn’t be discussed in front of their children. There is that traditional Filipino belief of not allowing kids to be exposed to mature subjects of discussions. What many fail to see, however, is that teaching kids the dos and don’ts of money spending would not only prepare them for a much stable financial future, but it would also instill in them a sense of responsibility when it comes to handling their finances. Here are five money lessons that may impact your child’s future:
1. You can’t buy all things immediately.
In short, this is trying to tell your kids that they just can’t buy anything they want, whenever they want to. Teaching this valuable lesson during their early years would not only refrain them from growing into spoiled brats, but also make them understand that money takes time to earn, hence, it should be spent, ideally, only when needed.
2 . Make the right decisions when it comes to spending your money.
We usually tell our kids to eat right and to avoid junk foods at all cost. The same principle applies for money spending. Make them realize that there are more important things than just toys and candies. Teach them about the basic necessities, such as clothes, food, and even shelter. Expose them to the fact that needs are always more valuable than wants, and that needs usually outlast wants when it comes to functionality, hence, the latter shouldn’t overshadow the former when it comes to budgeting and expenditures.
3. Money doesn’t grow on trees.
This is the best way to summarize the two pointers above. Make your kids realize that money is earned, not plucked from magical trees or summoned from your pockets. Let them know that adults work hard for each and every centavo earned, and that someday, they would definitely do the same thing. Instill in them the importance of spending wisely in order for them have a few amounts left for their piggy bank. Speaking of which…
4. Save, save, and save.
Teach your kids to save up for any future purchases. While they may be too young to work for their piggy bank savings, their main “job” for now would be to save up the extra change that they’d receive from mommy and daddy. As with Philippine traditions, relatives would usually give envelopes to the little members of the family during the holiday season. Teach them to keep these gifts aside for their future purchases.
5. Learning to share.
You might be confused, “I thought these lessons would encourage my kids to save and use their money wisely?” Yes, that is indeed true; however, this particular advice would not just instill goodness towards your kids, but also the spirit of investing wisely. Keeping money all to yourself would not enable it to grow. Proper investments, on the other hand, would not only gain you financial experience, it would also enable you to see your earnings grow each day. Sharing their money to those in need would let them see that the money they provided would do well in the long run.
Of course, when we’re talking about proper investments and savings, there is only one trusted name that we can surely recommend our kids in the future. If you’re a resident of Bacoor, Cavite, and Batangas, then the Cebuana Lhuillier Rural Bank is your one-stop spot for opening your own savings account. All transactions are real time, erasing all the hassles that you may experience in other establishments. So what are you waiting for? Visit the Cebuana Lhuillier Rural Bank now – we assure a fast, easy and secure transaction.
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