Tuesday, November 15, 2011

Encouraging Your Kids To Save Money

One of my favorite accomplishments when it comes to parenting is having taught my children the importance of saving money. I remembered those days when they were still in the pre school and that time, I was still working in the Philippines. I would always buy them a piggy bank or anything that could practically be used to save money. Of course that time, they just started saving for some coins which they saved from what was left from their school allowance. That time, it's quite small because we normally don't give pre school aged kids tons of money to bring to school. Normally, they would bring a lunch box to school containing their sandwiches, drinks and fruits.

I remembered so well how my son would invent ways to earn money for himself at such a young age. He would normally hand me a list of tasks which he is able to perform within his limit and he would charged me a small amount for that. His favorite and my favorite too is the soothing head massage. During those times, I'm always attacked by migraine due to the pressures from the job perhaps. So going home getting a massage from those "tiny hands" while lying on the sofa at the living room watching my favorite "teleserye" from the "kapamilya" network would always bring me to a "relaxed mood". Of course, that's not the best massage to get as it's being performed by a kid who doesn't know anything about what he is doing actually. But, the "touch therapy" and the sweet thoughts of getting it from a small kid compensated for all those "imperfections". I'm happy and pleased even if I need to pay him for the amount he charged me which is included on his list of tasks (lol). That's his way of earning extra money and I support him for that. At least, he is making an effort to earn and would not simply ask from me just like the other kids. Happy as he is, he would keep his earnings on his piggy bank and watch his money grows day by day.

A year after I began to work abroad, I managed to open a bank account for each of them from which I started by depositing the start up savings amount, actually far more than what the bank requires as an initial deposit. After I opened the account for each of them, I explained to them that I will be depositing their monthly allowances on their bank account which I told them was computed with a little bit extra from what they actually needed to sustain their daily expenses in school. I explained further that I intentionally did it that way so they would be inspired to save money and see their savings grow month by month. Also, another contribution to their growing savings is when they are able to get a scholarship for doing good in class. Their Dad is the one providing their school fees every year and when they able to get discounts or free tuition in school because of the scholarship, we still give them the same amount of the tuition fee which they would deposit in their savings account. It's cool! Everytime I go back for my vacation, I would check on their pass book and I'm happy to see that their savings keeps on growing.

For me, it only means three things:

They have already mastered the skills of saving money.

They became financially literate and able to control their spending habits at such a young age.

They are disciplined and they never overdo or abuse the fact they they are on their own and that nobody controls them on a day to day basis.

For me, this is great. It's not easy to discipline children especially when you are not with them physically especially so when it comes to "money matters". This is the reason why I said that this is one of my favorite accomplishments as a parent.

Again, I am sharing how I managed to do this for years and how I become successful at it. To sum up, I have summarized those tips in few simple steps:

First, don't be scared to give your kids some cash. Kids won't learn to manage their money if they don't have it in their possession.

Second, Show them how to budget. By being an expert in managing your home finances and involving them or giving them a lesson or two, would help your kids to successfully master how to budget and prioritize.

Third, Make it a condition to save from their allowance. In my case, I let them know that I gave them extra with a condition that it would be put on their savings and that they would add up to that amount from what they saved from their day to day expenses.

Fourth, Offer to match their funds. I've done this with my daughter. I challenged her to save a specific amount and commit to her that I will match up what she has saved so her savings would be doubled. She was happy with my proposal and tried to save as much as she could. Believe me but it works!

Laying down these simple steps will give you an idea on what money lessons to teach your kids. If you don't show them, no one will do. So I guess, it's an obligation for us, parents, to teach them the value of saving money and prepare them to become responsible people as they grow up.

That's for now friends, I'm still going to prepare my home budget for next month. Christmas season is now in the air so I have to work on my budget now.

See you around!

Ciao!!

10 comments:

  1. You always give justification to your blog title "Life's Tips and Tricks". Ngayon naman, may tips for parents! Sosyal naman ni ate Krizza, palaging may extra allowance ang mga kids! Tama talaga. As early as possible, children must be taught on how to save well. This can really help them to become responsible in the future! They should know the value of money. :)

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  2. Hi Algene! Mas sosyal ka Gene kasi estudyante ka pa lang kumikita ka na! Mas winner!!

    Anyway, thanks for sharing your thoughts. Oo naman, I always wanted to share something here in my blog that can be useful sa mga naliligaw dito na gustong magbasa. Hehehe!!

    Have a nice day Gene!

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  3. This post is in consonance of what was written in Proverbs 22:6, which says and I quote:

    King James Version
    Train up a child in the way he should go: and when he is old , he will not depart from it.

    I so admire your resilience in teaching your kids the proper way of saving up money so early in life, Krizz. I shall do that with my own kids too pag pinalad, hehe! Idol kita pagdating sa mga ganito ;-)

    Pasensya, di ko nagawang dumalaw dito. Actually nandito ako kanina (before 8am), medyo late na nga lang before leaving for work kaya di nako nakapagcomment.

    Natuwa naman ako kay Karen at nagawa pang sumilip satin kahit pano. I am sure she's still very busy with her grand vacay.

    Thanks for this post, Krizz. Will be looking forward for more tips and tricks.

    Love and Hugs,
    LAINY

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  4. Thanks for sharing all these great things to us ate Krizza! Send my best regards to your children ha? Proud mommy ka for sure! :p

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  5. Thanks for sharing sis!

    I will follow your tips as soon as Bella is of age, enough for her to understand the value of money.

    Buhay na ulit ako! Hahahaha! Sobrang na miss kita! Si algene na naman ang nauna dito ah. Hehe

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  6. Children at young age are difficult to manage, and at the same time anything good or bad would easily influence them. I appreciate the way you are helping your children to understand simple things in life which are gonna be useful to them all their life. I'd say every parent must follow the tips you've shared here to make their child a responsible person as they grow. If children learn to start saving money from their young age, they would not only understand the value of money, but when they grow up they'd be easily able to keep up with their finances.

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  7. @ Algene, Sure Gene I will send your regards to them. Salamat sa muling pagbabalik. Nahawa ka na kay Lainy at Rovie ah! Hehe.

    @ Rovie, Congrats sa muling pagbabalik ng iyong internet connection! Wagi!! Tuloy na naman ang kwentuhan natin. I hope may mga napupulot ka from my posts that will guide you in your journey with Bella's formative years.

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  8. @ Elvirah, Oh! thanks so much for the kind words Sis. I truly appreciate it! I really hope that my post could be of help to all Moms out there and the would soon be Moms. It's my pleasure to impart my experiences with all of you.

    Thanks for the lovely visit! God Bless1

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  9. Hey Krizz! You're still up at this hour? I went to bed early. Nagising ako around past 3am. Di nako makatulog. Meron akong ginagawang paid oops ng mga hotels sa Canada. It's been long overdue for a friend's blog. Sana matapos ko na to. Nasa pangalawang hotel palang ako, sigh!Di ko pa magawang makapag-update ng blog. Di ako makapagconcentrate, LOL!

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  10. To be honest, it is a pity that a majority f parents to today give zero discussions about money with their kinds. As a result we see a critical situations with student loans, with pay day loans online. Their irresponsibility is just enormous. Thank you for the beautiful post. I hope it will remind some parents to talk to their children before it is too late!

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