Q: Hi Dawn,

Sheela
Antipolo, Rizal

Thank you, Sheela for being an avid reader of my column! Writing back to you gives me so much pleasure.

I would like to be more specific in answering your questions. However, you didn’t mention how old your daughters are. So, I will assume that they are of a certain age where they can already understand subjects like ‘time management’ or ‘saving money’.

You are so right about wanting kids to have an awareness of the value of money. These days, it’s easy to forget the importance of earning, spending, sharing and saving – be it with money, time or objects. Our children truly need to learn (as early as possible) how to appreciate these things and respect their value. Opening a kiddie savings account for your children and letting them have free reign over how they keep or spend their money is one of the most valuable lessons you can impart in their early childhood.

I began teaching my son about the idea of ‘saving’ when he was just six months old by showing him his piggybank and dropping loose change into it. Beginning with the simplest instruction of inserting a coin into the hole, and expanding the lesson as he grew older by explaining the reasons why it is good to set aside some money for that toy he wants to buy at the store. Now, Jacobo has a wallet that we fill up every few months when we both empty his piggy bank. And when we walk into the toy store, he knows he cannot buy all the Matchboxes his heart desires, but he can have one or two with the money he saved from weeks past. Jacobo also learns independence, responsibility; and gains an awareness of his spending habits. When the cash is gone, it’s gone.

Other things you can do so your kids will learn these important principles are in the spending habits you share with them. For the following examples I will give you, bear in mind that the act of showing and/or teaching these ways to your daughters allows you more quality bonding time with them. You can involve them with the burden of earning and keeping a decent living. This is a priceless practice your children can benefit from as they grow into adulthood.

Case in point, I have stopped buying bottled water and purchased good-quality metal thermoses. I refill them each morning and stick them into my handbag as well as in my son’s lunchboxes to save money and help the environment. Now, Jacobo already knows about how not to waste running water each time he takes his bath or wash his hands… never leaving the faucet running idly, among others. We teach best when we live by the lessons that we are giving them.

Here are the other ways you can educate your children about the value of and how to save money— and in the process, bond better. Some of these tips came from an article in  PARENTING magazine, which is one of my favorites.

1. Keep a list of restaurants where kids can eat for free or those with special promos for children. You can ask them to keep some coupons from restaurants and tell them to remind you to use it the next time you eat there. They will not only get to practice their reading, they will also learn how to be careful with their money.

2. Try to make your home greener and more cost-effective. So far, we’ve changed all our bulbs to CFL’s and bought light sensing nightlights for the kids. These small changes can really cut your electric bill by a large margin. Get the kids involved. Remind them to make a habit of turning off the light switch or other appliances whenever they leave a room.

3. Check your grocery store’s discount promos and coupons. Also, be a good example when it comes to saving. Being a good eater for instance is one of the best ways to teach kids this lesson. Seeing that I never have leftovers on my plate teaches my son about not taking more than he can consume. Kids will soon understand that it is insensitive to be wasteful. The habit crosses over to other areas of expense.

4. Schedule a videogame night. It’s entertaining and at the same time, economical. Instead of eating out or going to the carnival, families can have fun without having to pay so much. You just need a game console, a few games and the whole family is all set to have a great time.

Reference: PARENTING magazine, October 2008