June 09, 2016

How to Raise Financially Literate Kids?


When I was a kid, I always try to save my money so I can buy the things that I want because I know that our family budget is enough for basic needs and not for luxury. Now that I am a mom, I’m teaching my son how to save money, I want him to be a good steward. I always tell him that we are not rich and if he wants something he needs to save for it. 

“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: How to Secure your Kids 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 LIttle Chef 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.

22 comments:

  1. I really loved that you have taught your kid as early as now about the importance of saving. It will definitely financially prepare him for his future. :)

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  2. My kids are 5 years old and 3 years old, but we've already taught them the hard work that goes into the money we spend. I think it's never too early to teach kids about finances so cheers to you!

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  3. hahaha my kids are like that too. They think unlimited din ang ATM haha. We're looking into ITF too. Right now, we're still working on Mutual Funds for each kid.

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    1. Di ba, feeling nila pwede kumuha anytime. hehehe! I want to try MF too. :)

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  4. I am a work in progress when it comes to handling money. I am trying my best to stay in budget and I failed so many times. But I keep doing it with hopes that soon I'll be able to master it. At least now, I'm proud to say, I've mastered saving. Di na ako mapalagay pag sasahod ako at wala akong maiipon. :) And I hope, whatever good that I am doing now, I can share it with my son and he can be a lot better than me when it comes to money.

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    1. It is really hard to save if there are so many temptations like sale and discount. :) Good to know that you have mastered saving.

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  5. I agree we should start teaching our children early the value of money and saving for the future. Even if we are able to provide our kids with luxury we should learn to temper ourselves and not give in easy. And let our kids to earn things on their own.

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    1. That is the common problem of those who can afford, they just give and give. You are right that parents need self-control so kids will learn to save.

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  6. I agree that we need to start teaching our kids at a young age to value money and save for the rainy day. I am also planning to open an account for my son at BDO. Thank you for sharing the infographic. Will print that out and give copies to my nephew and niece so that they will also learn how to handle their finances.

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    1. For as low as P100 you can open Junior Savings Account in BDO. :)

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  7. Good job Mommy Michi. As a thrifty momma, I also plan to educate my son at an early age the value of money so he won't grow up a "bilmoko" kid haha :)

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    1. Thanks! Agree, mahirap pag "bili mo ko" kids sila, sakit sa ulo. hehehe!

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  8. Money is a taboo topic in some households. Good thing us modern day moms are encouraging our kids to become financially literate and erase the mindset that money can't buy happiness. Coz I totally agree with #9: Money is a tool to reach our dreams. ��

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    1. Yes, financial literary is a must, sometimes learning how to save is not enough and we need to learn how to grow our money to reach our dreams.

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  9. True, we should teach our kids how to save for the rainy days while they're still young. Money doesn't grow on trees, and when money is scarce, that's when they will realize the value of saving.

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    1. Agree, they need to know the value of money. If you want money, you need to work for it.

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  10. When I was younger, my parents would always discuss the importance of money and savings. I plan to instill sufficient financial knowledge on my kids too as early as now. So far, my four-year old understands the concept of "saving" and she puts the coins in her piggy bank :))

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    1. Lucky you, nobody taught me when I was a kid.

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  11. At home, my hubby and I encourage financial management by teaching our our son how to save and accumulate ‘wealth’. Of course, as his piggy bank balances increase so does his temptation to spend…..and then the fun begins!

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  12. Teaching children about money at a young age is good. You are doing a great job!

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  13. my son also has an account in bdo too - he is now 7 years old.

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  14. Wow... this is a good way of teaching the little ones about responsibility. It will also help them develop their financial skills. ☺

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