“If you are born poor it’s not your fault. But if you die poor it’s your fault. - Bill Gates”
Read: Teaching Kids How to Save
I started saving his money when he was a month old by opening Junior Savings Account in BDO. All the money he received on his birthday, Christmas or any other occasions, I put it in his bank account.
He was not aware that he has savings account so two years ago, I gave him piggy bank. I told him that if he wants to buy something, learn to save for it. Most of the time he will just buy a happy meal from McDonald then I will save the rest of his money.
Then I realized that having savings account is not enough to grow his money so two years ago, I opened an ITF (In Trust Fund) Account in COL Financial. I transferred part of his savings to stock market so at least he can earn from dividend or selling stocks.
Read: I’m Investing on my Son’s Financial Future
How to Apply ITF (In Trust Fund) Account in COL Financial
But of course, he doesn’t know about stock market yet so he still has savings account. Last year I decided to let him experience to open his own savings account at BDO. This time it is no longer joint account because he can write and he can sign his own document.
Read: How to Open Savings Account in BDO
When he was still young, whenever I say that we have no money. He will just say, just go to ATM and get money. So in his mind, unlimited ang money sa ATM. So I taught him how to deposit money by writing his details in deposit slip and falling in line at the bank.
I told him that he needs to deposit money so he can withdraw from the ATM. I showed him his passbook and balance so kung ano lang ang nandun yun lang pwede iwithdraw. But of course, I will not let him withdraw his money, I don’t know when I will teach him that part. Hehehe!
My son is now in grade school, I give him allowance but he is not spending it so I do not give him money every day. I just check his coin purse and put money if konti na lang. In one school year, parang isang beses lang yata bumili anak ko. He bought yema and cookie sa nagtinda sa room nila from Cooking Club. Then most of the time, donation or contribution in class lang. (they also have piggy bank in class for donation). I’m not sure about this school year, I hope he will not spend his allowance on candies and toys.
Back to school is near, how do you teach your children on how to spend or save their school allowances. I really want to raise my son to be financially literate. Care to share if you want to add something.