It’s in the culture of Filipino elders to give money to children during Christmas as gift. Children (and parents) then use this money to spend on anything that they want as something new to have for Christmas and the New Year.
But while this tradition should continue, parents and godparents should also teach children to save money that they receive.
It is good to spend, but it’s better for them to learn the value and benefits of saving money.
Open a Savings Account for Kids
Remember my post about savings account options in the Philippines that you can choose from to be the Christmas gift alternative to your godchildren? As a parent of godparent, have you already open bank accounts for your children?
Encourage your children to save up small portions of their allowance and help them get excited by showing them their online bank statements and the interests that they are earning from their savings.
Help Them Set Goals
Analyze the needs and wants of your kids.
If you see that your child is into music or sports, why don’t you encourage them to save up so that they could buy that brand new acoustic guitar or their favorite Kobe shoes?
Set up a whiteboard/blackboard and make a chart showing the progress of their savings until they reach the price of that thing that they really want to buy.
Make saving and goal-setting fun and entertaining for them.
Lead By Example – Save Money As a Parent
Bring your children with you when depositing money in the bank or make your own chart as well and show that to your kids. Explain to them that you are saving money either to buy a very important thing or to grow it further through an investment so that they can continue going to school.
Alternatively, you can tell them that you are competing with them and that you, too, want to save up money to buy the thing that you have been wishing for.
Avoid buying unnecessary food and home items. Children can become curious as to why you’re buying things you don’t even need.
Give A Surprise Treat as Reward for Saving Money
Set up a surprise treat for the whole family at a fastfood restaurant or in your favorite leisure park as a reward for their effort of saving money once your kids have reached a certain amount.
It’s also important that they enjoy their money by helping them spend wisely on any small item.
Teach them how to bargain or choose the best price when buying something they would like to have other than the one stated in their “goal chart”.
Honesty. Integrity. Responsibility.
To top it all, you must instill in the minds and hearts of your children that money should be earned honestly. Children must learn that there is no easy money and that it should be earned through hard and honest work.
As parents, children must also see that while it’s good to save, it also has to be spent responsibly.
Do you have other tips to share on how to teach children how to save money? Please give your comments below.
On my next post, we will discuss how we can teach our children to invest and make their money grow over time.
Rock your way to abundance!
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Great tips! It’s definitely very helpful to parents and parents-to-be (like me!)
I agree especially with giving them rewards. Saving is sort of a sacrifice, and I think it’s importantn to show early on that sacrifices can lead to greater rewards.
Hi! Thanks for the comment.
You are right. As parents (and parents-to-be), we should not feel guilty if our kids get disappointed when we don’t give them what they want. Let them have the experience of working hard before getting what they want. There are countless values that children can learn from saving money.