Teaching children the value of money

MANILA, Philippines - Aside from giving them the gift of education, parents need to teach their children how to manage their choices in life. Teaching them the value of saving money goes beyond the piggy bank – it’s a start to teach them about responsibility and freedom.

To start them off in the right direction, here are six ideas that can help you:

The money jar – There’s something attractive to kids (and sometimes, even adults) when they see a jar full of shiny new coins. Get a medium-sized one and label them to what they would like to have: “Patty’s new shoes” or “Mike’s new book.” This way, they clearly see that the one, five, and ten peso coins go a long way. Help them fill the jar and keep encouraging them that what they want the most is worth waiting for.

Talk about money – Gone are the days when money was a taboo subject. It’s important for children to know how finances help the family achieve its goals, sends them to school, pays for the bills, and even the occasional family dinners. Show them that managing their resources is better than worrying about it. Now is also the perfect time to teach them about credit cards and how to use them wisely. Remember the movie Confessions of a Shopaholic?

Goals and the big picture – It’s not easy to learn all these things as an adult, so start them while they’re young. Part of growing up is learning about how their choices affect the outcome of their lives. Sit them down and discuss what they want to do for the summer. Would they like to go on a family vacation or enroll them in a summer workshop? Discuss the pros and the cons for everyone, how it can help them (i.e. a language program, painting, or karate lessons), and decide to take the best course of action for them. Involve them in the decision-making process.

Recycling – Who knew that being environmental could teach children about money? Explain to them that buying unnecessarily does not contribute to the environmental problem. Recycling old school materials and making do with what they have at home consumes less fuel, has a smaller carbon footprint, and might be even saving a dolphin or a polar bear.

Open a savings account – One of the most memorable things for a child or a teen is going to the bank and opening a savings account together. Make a family event out of it. For children, this is the perfect time to bond with them. And for teens, the perfect way of showing how you trust them. 

Give back – Never underestimate the value of sharing and giving back. By showing your children the spirit of philanthropy, you open a world of possibilities for them. Educate them with the different charities you are involved in. Hoarding money and resources do not benefit anyone in the end. The true act of giving means the sharing of spirit and love – this is the best example that it’s not all about money.

Plantersbank encourages parents to introduce their children to managing finances at an early age. The SME Kiddie Club is an interest bearing savings account for children seven to 12 years of age, with a low initial deposit and maintaining balance of P500, and the SME Teen Club are for teens from 13 to 19 years old with low initial deposit and maintaining balance of P1, 000.

Account holders can also participate in Plantersbank’s SME Kiddie Club and SME Teen Club bank activities and kids’ workshops. Find out how you your kiddies and teens can get into the habit of saving. Visit www.plantersbank.com.ph  or visit any Plantersbank branch near you.