When I was a kid, my parents never taught me about money.
What I would always hear from them was their lack of money and how they struggled financially.
Because of my parents’ behavior towards money, I grew up thinking that it’s hard to earn money, that money doesn’t grow on trees, and that we should eat our entire meal because some kids are starving.
When I moved to Manila to study college, I also struggled with money. My parents did their best to support me financially, but it wasn’t enough. I had to take part-time jobs just to make ends meet.
When I graduated college and got a full-time job, I promised myself that I will never ever have an empty pocket again. I committed to work hard, earn money, and save some for the rainy days.
I did not want my children to go through what I went through during my younger years that’s why I do my best to learn more about saving and investing.
And now that I am already a parent, I realized that it is our responsibility as parents to teach our children about money management.
That’s why I started teaching my daughter, Macey, about money and how to properly manage it at an early age.
Here are some of the things I taught Macey about money and where we invest her money.
I started teaching Macey about saving money when she was 2 years old.
Even if she didn’t understand the value of money yet, I told her that if she saves her coins in the piggy bank, she can buy more books and toys.
We always look forward to BooksForLess’ annual warehouse sale because that’s when we open her piggy bank and buy her books using her own money.
COL Financial – Stock Market Account
On Macey’s 3rd birthday in 2016, we personally went to COL Financial’s office at the Philippine Stock Exchange Building in Ortigas to open her first stock market account.
We intend to save and invest her college fund in COL Financial. This is a long-term investment.
BDO Junior Savers Account
We also opened a BDO Junior Savings Account for Macey when she was 5 years old.
This is where we save funds for her tuition and miscellaneous fees in Pre-school and Grade school.
If we have extra funds, we might open a UITF or BDO Nomura with her BDO Junior Savings Account which offers higher interest than the regular savings account.
Barangka Credit Cooperative
When I opened my personal account at Barangka Credit Cooperative or BCC, they told me that they also offer a savings account for kids.
The initial deposit is only PHP 100 and the interest rate per annum is 1.5% which is way higher than what the bank offers.
Since we trust BCC, we also opened a BCC Kiddie Savers Club Account for Macey.
Another good thing about BCC is that they give out free piggy banks.
Macey likes it and she is more motivated to save her coins in her BCC piggy bank. As soon as it’s full, we bring it to BCC and deposit it in her BCC Savings Account.
By the way, we intend to use this account for Macey’s “PLAY” fund. This is where we plan to save her budget for her books, art materials, and toys.
How I Teach Macey About Money
After reading “How to be a Money-Smart Parent and Raise a Money-Smart Kid” book by Dr. Marnie Moya-Prudencio last month, I decided to start teaching Macey the value of money and its denominations.
Since she’s already familiar with colors and numbers, it was easier for her to learn and memorize the denominations of Philippine coins and bills.
We also get her involved in grocery shopping – from making a grocery list to paying at the cashier.
Sometimes, we also take her to the wet market. I believe this is a good exposure for her not only to know where we buy food but also to have great respect to those who worked really hard so we could have food on our table – from the farmers and fishermen to the vendors.
Kids are never too young to learn about money.
And like what I said earlier, it is our responsibility to teach them. The earlier we teach them about money the better for their future.
I believe kids who learn about money early on will likely manage their finances better when they grow up.
How about you? Have you started teaching your kids about money? Feel free to share with us your experience in the comment section and let’s talk soon. 🙂
While I did figure out all these things on my own, I don’t blame my parents for their lack of financial planning or money management skills. I respect and honor them and I’m grateful for all that they’ve done for me and our family.
More than anything, I’m grateful to God for his grace and provision. Everything that we have comes from Him. We are just stewards of his blessings.