Parents, when do you start teaching your kids the value of money? At what age do you begin giving them allowances? When they want to buy something high-value, do you buy it for them or let them save up?
Among many important values, I think being money-wise is something parents should teach their kids early.
With our kids returning to school in a few days, allowances and budgeting are some of the concerns we and our kids will be dealing with. Here are some tips on how to help your kids learn the value of saving.
1. Teach them the concept of saving early on with piggy banks. What my kids and I do is start a piggy bank account at the beginning of the year and use the savings for something they want for themselves during Christmas. This way, they will learn in a tangible way that saving money has its rewards.
2. Give older children allowances. My two daughters started receiving a weekly allowance when they got to Grade 3. Hub and I decided to give the allowance weekly instead of daily to teach them how to budget. If they used up the allowance before the week was over, sorry – they’ll have to do better next time.
I also encourage my kids to set aside a small amount from their allowances – a few coins each day will do. Last Christmas, Patch told me she wanted to give gifts to her classmates. I told her I only had little budget for that, and if she wanted to spend more, she will have to save for it. And so she saved from her allowances.
An allowance gives kids some feeling of empowerment, as well as a sense of responsibility. As they master their spending and budgeting skills, they become more confident.
3. Live by example. The kids must see how you yourselves as their parents are saving and budgeting. We can’t tell them “no, that’s too expensive” when they see us splurging on unnecessary luxuries, can we? When I buy groceries, I compare prices and stick to the ones I know are cheaper but with comparable quality. My kids have seen me whip out the calculator in the supermarket and compare, say, toilet paper prices per roll. LOL. I think my kids have absorbed the price-conscious attitude.
4. Let them spend their money. On the opposite end of saving is spending. I think it is not good to be too stingy to the point of Scrooge-ness. It’s good to let your kids enjoy the fruits of their savings once in a while. Spend and save in moderation – I think that’s a good guide. (My Chinese Hub would say “always save more than what you spend.”)
Guide your child as he/she decides on the purchase. Sometimes, letting your child make a mistake is a good learning experience that he/she will remember for a long time. This is something I learned from Hub – don’t be afraid to let the kids make mistakes because that’s how they learn.
5. Open a savings account. Again, a good time to do this would be after Christmas and New Year when they have gotten ang paos (red envelop) or money gifts from angkong and ama, titos and titas, or ninongs and ninangs.
One of the more interesting saving schemes for kids I found is BPI’s Jumpstart Savings. It’s an ATM savings account for older kids who are already receiving allowances.
What I like with BPI Jumpstart Savings:
It’s affordable. With as little as P500, your child can already open a Jumpstart account. And it comes with an ATM with a cool design too.
Jumpstart is designed for saving. Your child can set aside “Guaranteed Savings” – a portion of the savings that won’t be touched. It’s an ideal way to save up for a special purchase.
It’s so convenient. As a mom, I don’t like it when my daughter reminds me last-minute of her allowance in the midst of morning madness at home. With BPI Jumpstart, allowances can automatically be transferred from the parents’ account to the child’s Jumpstart account. So parents are spared the task of having to remember to give allowances, and kids the task of asking.
Another convenient feature of BPI Jumpstart is that it can be used to buy cellphone load. Three ways to do that: via Express Phone (89-100) or Express Mobile; via any Express Teller ATM; and via the internet at BPI Express Online. Now that’s one more task off my list!
It teaches your child how to spend wisely. The BPI Jumpstart ATM can be swiped in any Express Payment System (EPS) store nationwide. That’s convenience for older kids while, at the same time, teaching them how to spend responsibly. Again, there’s that sense of empowerment that they get to experience. Kids also get perks such as discounts from partner establishments.
Learn more about BPI Jumpstart Savings here.
A savings account like Jumpstart is a good way of giving your kids freedom in spending while teaching them the value of saving. In the end, it is mostly how you as parents prepare and guide them on money matters that will have the biggest effect on their saving/spending habits.
How do you jumpstart your kids’ money skills? Share your thoughts!
Blog Source: iMom
