“If you are born poor it’s not your mistake, but if you die poor it’s your mistake.” –Bill Gates
In September 2016 out of estimated 7.3 million populations in the Philippines, 30% considered themselves as poor. While in March 2018 SWS survey poverty rate was 29%. These statistics indicate that every parent should prioritize their kids to have personal financial literacy as early as Kindergarten years.
During their younger years, visual learning is the most effective tool in teaching them personal finance. Instead of a piggy bank, give them a clear jar where transparency is
visible. Every day remind your kids to put at least five pesos coins to the jar after a week let them appreciate the value of saving money. Show them the coins they were able to fill it up
over the week.
Lesson: The sooner you save money, the faster it multiplies.
When going to the mall for quality time with the family, try to bring the clear jar with you. If the kids want to buy a toy, let them grab money out of the jar and hand it over to the
cashier. If the coins from the clear jar are not enough to buy the toy, as a parent you need to instruct them that they have to wait to buy something they want. Many shoppers would think that you’re just being thrifty, but this is one of the great ways to teach the kids how to handle personal finance properly.
Lesson: Kids will realize that every time you go to the mall it’s not necessary that they must buy something for themselves.
Sometimes you have to save up for it before you can
purchase. You don’t have to wait for their teenage years to teach them about personal finance. You can start by doing these two examples at their very young age.