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Kids and Financials: The Merit System of Teaching Kids about Financial Management This Holiday

As a parent, it is our duty to teach our kids the value of money at an early age. Knowing its true value and the various ways on how to use it properly would not only be beneficial for their mentality towards it as they grow, it would also orient them about the hard work that goes along with earning every centavo. Some parents would take the easy way out and simply give their kids around twenty (20) to fifty (50) Pesos, hoping to distract them for a bit until they come back to ask for more. This isn’t the right way to raise them. Responsible parents would rather choose to discipline them at an early age, make them face the hard truth about money and the pitfalls that goes along with overspending them.

For those who have yet to experience teaching their kids about this valuable lesson and are totally clueless on how to do it efficiently, look no further than our list of tips (and tricks) about financial management at an early age and the merits to teaching it at that very stage.

First of all, let us address something very important

Understandably, one of the many things that may happen while teaching your kids the value of money is that they may compare your expenditures with that of their playmate’s parents. The thing is, not everyone has an executive position at work, so while their playmate’s parents may be making hundreds of thousands a month, your couple of thousands would definitely be lower, hence, resulting to a tighter budget. You may hear your kids say, “Why does Peter’s parents buy him toys every payday, while I only get them every holiday?” There is no shame in telling your kids the truth, never make up excuses or funny stories, instead, let them know of your financial situation. Orienting your kids as early as now would definitely do wonders in the long run.

With that out of the way, here are a few valuable tips to teach your kids on how to save and manage their finances at an early age:

1.) Tell them that every cent earned is a result of long hours of work.

There is no such thing as a free lunch. Explaining this at first to your kids may be tough, but the easiest way to do this would be to compare your job with their school work. Students who submit their assignments and are active in recitations would get higher grades than those who do not exert any effort. The same thing applies to your job, with countless hours spent filing papers, hammering nails, washing plates, etc. in order to receive a salary every cut off of the month. Take this tip as a form of hitting two birds with one stone, not only would they understand the value of money, they would also be inspired to study hard. Hard work always pays in the end.

2.) Every item bought has its particular use.

Kids without discipline would often buy candies and knick knacks, enjoying it all for a short period of time, until they run out of short change and beg for more from their parents. The thing about kids not knowing the value of money is that they also don’t know the importance of buying something that should be useful for a long time. Adults would purchase air conditioners, refrigerators, flat screen TVs, desktop computers, cellphones, etc. in order to have something to use on a daily basis, a useful appliance or gadget of sorts. Kids aren’t aware of this concept, but they would easily understand once you use their toys as an example. Choose their most favorite toy and ask them how often do they play with it? If they answer “too often,” then you’d know that you hit the spot. Tell them that items as important as their favorite toy are bought with hard-earned money, and the same rule should apply to all of the things that they’d purchase in the future. School supplies, books, clothes, all of it should be a top priority rather than junk foods and knick knacks.

3.) Let them know that saving money is a sign of being nice, not naughty.

Kids always expected Santa Claus to swoop down from the roof and bring them presents every Christmas day. This belief holds true until this very day. In such case, use this to your advantage in teaching them about managing their finances, tell them that Santa doesn’t like kids who overspend. That being a good kid entails one to save, instead of overspending everything.

4.) Make them realize that Christmas season isn’t the only season for discounts and low budget purchases.

Orient them about the other national holidays, and how the major manufacturers (such as the ones who sell their favorite toys) are aware of these other holidays as well, so that they wouldn’t need to worry when it comes to missing out on the nice things this Christmas. It doesn’t mean that you are depriving them of gifts and treats, but rather, they should at least learn to set aside a few amounts for other future expenses. Develop this at their early age and it would be very advantageous to them in the long run.

5.) Don’t just teach them, reward them.

Every triumph deserves a trophy. Remember, one of the tip above entails that they wouldn’t need to spend, since Santa already has them covered. In such case, it is up to you to reward them for a valuable lesson learned. Give them a reason to not spend their pocket money, by providing them with a gift this Christmas. Of course, you don’ need to go all out. A simple gift such as a small toy or their preferred shoe or apparel would do the trick.


With all of these in mind, you may be looking for a well-trusted name that would safely value the security of your hard-earned money. Well, look no further than Cebuana Lhuillier’s Micro Savings, at its core, it aims to provide easier banking access to Filipinos. The product is almost the same with any regular savings account in the Philippines, but doesn’t require a maintaining balance. You will only need 1 government ID and atleast P50 initial deposit, Filipino citizens as young as 7 years old old are also qualified to open an account, which can be considered as a “kids savings” or “junior savings” account. So what are you waiting for? Feel free to visit the nearest Cebuana Lhuillier now!