As a parent, you have the influence to shape your child’s relationship with money. Like Amaya, she set an example for Ligaya. Start early by teaching them how to be responsible and smart with money. Teach them where money comes from, how to budget, how to spend it wisely, and how to set savings goals.
Like Amaya, we want our children to decide on how and what we spend money on carefully. Here are some simple lessons that can help you teach your children about money.
Money is something that you work hard for
Teach them that money is earned by working for it. Let children know that parents work hard to provide for the family. For OFW parents, they make sacrifices by working abroad and being separated from their children in order to provide for their families back home. For some, it is enough for only one parent to work; while for others, both parents need to work to have enough money to pay for expenses. No matter the setup, kids need to understand the real-world value of hard work.
Prioritize the essentials
When spending money, teach your children that it is essential to prioritize critical expenses. If they are still too young, you can try to make them understand this message by explaining that money is a limited resource, which is why we spend on needs first over luxuries. Give examples like how one must prioritize paying for tuition or electricity overspending for a gadget or a vacation. The money you earn must cover the essentials, like food, clothes, and housing.
Wants and needs are different things
Explain to your child that "wants" and "needs" are different from each other. A need is something you must have to survive like food and water, while a want is something nice to have but you can live without. Teaching this to your child will help them understand why people should spend for their needs first.
Start saving as early as possible
Saving is one of the important financial habits we want to instill in our children. If we can make saving a part of their regular life, most likely, they will continue doing it when they grow up. OFW parents can teach their children to set aside and save money from their remittances and allowances. This is a good way to begin your journey at your family's home. After all, we want our children to achieve financial freedom in their adulthood. The earlier they start, the sooner they can make saving a habit.
Teach them why insurance is important
Understanding the importance of insurance as early as possible can enable your children to live a more prepared and stress-free life. With a secure future in mind, it will be easier for children to understand the value of financial freedom in their lives. Find out you and your children’s dynamic personality towards financial wellness here.
Having a sound money mindset is one of the most helpful and relevant life skills that we can pass on to the next generation. The foundation that allows us to pass on these valuable lessons is anchored on being able to set a good example. Actions are always louder than words, so it is important to be able to walk the talk, especially when it comes to money.
Take a page out of Ligaya’s book – she invested in her mom’s retirement fund. By doing this, she gave her mom the retirement she deserved so that she and her mom can reunite and be home for good. As your Partner for Life, we want you to have a retirement plan that can help you be confident in your golden years.
Know the life insurance and investment options that are suited for you and your children. You can watch Sinag here to learn from Amaya and Ligaya. Just like them, kaya mo yan! Talk to one of our financial advisors today and be Home for Good!
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