It’s never too early to start teaching your children how to save. In fact, financial gurus like Rose Fres Fausto say that the earlier you start, the better they become at managing money in their teens and adulthood.
In the Philippines, parents do their best to shield their children from poverty. Here’s a common scenario in fast food chains: parents would settle for the cheaper meal so they can buy the more expensive fried chicken or combo meal their kids love.
The sacrificing nature of Filipino parents is admirable. There are, however, better ways to cope with budget constraints — ways that will teach your children the value of money and to appreciate the hard work you put into earning it.
Here are three easy techniques to teach young children to save and manage money.
- Indulge in role-playing games where they can count paper money and use them to buy or sell make-believe goods and services. For instance, have your child pretend that he or she owns a grocery store and that you are a customer. You can also do it the other way around so you can teach your child what not being able to afford something means.
- Encourage your children to start a simple business. In the summer, you can teach them how to make ice candy to sell to their friends and your neighbors. Show that they earn an income when they work hard at selling. Bo Sanchez, a preacher and author-entrepreneur, says parents should teach children that there’s no shame in selling. It is an honorable occupation and can be an excellent source of income.
- Teach your children that even if you don’t have much today, they can still succeed and be financially secure in the future. Don’t put a label on your family’s financial status. Avoid saying that you’re poor and that, because of it, you can’t afford to buy expensive things or dream of loftier goals. It may not seem like it, but financial success also depends on a person’s psychological mindset. So, if you teach your child to believe that he or she is capable of achieving more from a young age, there’s a good chance that it will come to fruition.
You don’t need to open a savings account to teach your children to save and value money (although it won’t hurt to expose them to banking conveniences at an early age, too). Learning starts at home, so set them on the path to financial literacy. They will thank you for it in the future.