Five Effective Ways You Can Teach Your Children to be Money-savvy


As a parent, do yourself and your children a favor by teaching them these money concepts while they’re still young. You’ll thank your older self later for it.

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Entitlement is a problem prevalent in today’s young generation. Just like what I posted in a previous article on the sense of entitlement, one should know that the world does not owe you anything.

Take a look at this news story that went viral the past week: a 22-year-old recklessly spent $90,000 meant for her tuition and used it to fund her college break (a trip in Europe) and shopping for clothes. In three years, all her money was gone.

You know what the worst part was?

She blamed her parents for her misfortune, because apparently they “never sat with me and had like a real serious talk about it.… They said there was nothing they could do to help me anyway.”

What I found even more upsetting was that she wanted to use her parent’s retirement fund for her tuition.

Her grandparents gave her the money for tuition. She then spent everything. And now she blames her parents, arguing they can still help her fund her college education with their retirement money.

How do we prevent this sense of entitlement from happening in the first place? Well, we start by nourishing the roots while the plant is still growing.

We start by teaching children effective money habits. Here are five of them, as told by money-savvy parents:

  1. Help your children develop smart money goals. Burn Gutiérrez of Rock to Riches believes in finding out what your child’s passion is, and encouraging them to save up for a specific item related to it.

“If a child is into music or sports, encourage them to save up so that they could buy that brand-new guitar or 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 have,” he says.

For your children to associate saving money with something specific, it’s important that they know when they want to buy it, how much their target amount, is and how much they’re willing to save for it.

The end goal? It’s to “make saving and goal-setting fun and entertaining” for your children.

  1. Let them know if an item is “cheap,” “expensive” or “value for money.” When you ask Garry de Castro of Financial Planning PH how he develops money habits in his children, this is what he does: “We first teach them the concept of saving by giving them piggy banks. When they got older, in the mall, usually in toy stores, I ask them to read the price tag and then I’ll tell my son if it’s mahal or mura.”

As parents, what you’re improving here is your children’s sense of frugality. You’re teaching them that just because they can afford it doesn’t mean they should buy it immediately.

If an item is expensive and not worth the asking price, they may try and look for a more affordable item offering the same value but at a lesser price in a different place.

  1. Pay them for the job that they do. Curious about how ANC On The Money’s Edric Mendoza’s teaching style is?

We don’t give allowance, instead we pay them for jobs they do. Sometimes they will speak with me at an event and they get paid for that. Other times they will prepare a report, or finish a homeschool project and they get paid for that.

Why is it important for children to realize that money does not grow on trees, that it’s supposed to be earned, I asked.

He answers, “In this way, we instill the idea that they are not entitled to receive money, but instead they have to put in an effort and work to obtain it. At times, they will realize that it isn’t easy, and they have to struggle to obtain it.”

And to those who believe they should have money even if they have not done anything to deserve it, here is the question: If you’re healthy, why aren’t you earning your money?

  1. Teach them the concept of delayed gratification and of the wonders of giving back to the community. Galileo Enrichment’s Nira Arcales believes in rewarding good deeds and in planting the idea that great things come to those who assertively wait.

“I taught my daughter to save since she was five. She had this savings box and every year when her birthday comes around, she’ll open it and use the money to treat us and buy whatever she wants. On her sixth birthday, she saved around P9,000.

“Now that she’s turning seven, we counted the money in her savings box and it’s around P16,000. We used it to pay for the venue of her seventh birthday.”

Isn’t this an amazing feat for a young child? When I asked her how her daughter was able to save this amount of money, she answered:

“We had this deal that for every high score and every good deed, we will put money in her savings box. This way, she will always remember to do well and be the best she can be. It also teaches her good values, such as delayed gratification, being patient, and those who work hard will be rewarded.”

As a special treat for your children, you can also ask if they like to celebrate their birthday with the less fortunate. This way they realize they are blessed, because ultimately they are a blessing to others.

  1. Let them take summer jobs that will enhance their talent and increase their appreciation for earning one’s keep. FQMom’s Rose Fausto had this to say about money habits.

“Summertime for my kids is an opportunity to earn extra income, instead of just enrolling in summer classes left and right. They’ve given dance classes, produced a recital, taught guitar lessons, etc., for a fee.”

But don’t just take her word for it. After all, she was able to raise three money-savvy teenage boys who are now doing their best to spread the concept of financial literacy.

If one has not worked for it, one is not entitled to get it. That’s just the way the world is.

As a parent, do yourself and your children a favor by teaching them these money concepts while they’re still young. You’ll thank your older self later for it.

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Lianne Martha Maiquez Laroya, RFP is a registered financial planner and financial advisor who founded and, both web sites dedicated to teach you about money management and investing without boring you to tears. She is also a best selling author of “OMG! Where Did Your Sweldo Go?”




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