5 Ways to Teach Kids the Value of Money

     Growing up in a family with a bakeshop business has taught me a lot especially in handling money at an early age. We used to have a bakery in my parent's house and business starts as early as 4 in the morning. Since I'm the eldest, it's my responsibility to help run our 'panaderya' after school and on weekends.

     I'm the cashier that's why I learned the value of money and the difference of twenty pesos and a hundred bucks in terms of buying and selling bread products. From what I saw from my parents, you have to earn it the hard way in order for you to think more than twice before spending it. They instilled in me the difference between needs and wants and why it is important to save money at an early age. Now that I'm a mom to an adolescent, it's time to teach my son the simple tips that I've learned from my parents on the value of savings. 

5 Ways to Teach Kids the Value of Money

1. Make Use of Coin and Piggy Banks

     Admit it, your kids receive all sizes, shapes, and colors of coin or piggy banks during birthdays or holidays. It's a good sign that your relatives and friends want your child to learn the value of money at an early age. Don't keep it, use it! Place the coin or piggy bank beside the bookshelf or in the display cabinet and let him or her drop loose change or coins whenever they see them. Educate them that the goal is to fill up and see the money grow.

2. Teach the Value of Money 

     There are different ways on how to teach kids the value of money. One of the easiest ways is when you’re out for grocery shopping and dining out.  Show your children how to discern between various prices, explain to them the difference and why you need to look for the same quality products for a cheaper price or a better alternative. 

3. Explain the difference between NEEDS and WANTS

     It's hard to teach finances to our kids in particular with the needs vs wants. They always think it's a need to buy this or that because they use it every day or they need a new toy even if it's affordable. It's always a good idea to say no and tell them that they can't have everything they want. Inculcating them the difference between needs and wants will let them grasp the idea of financial priorities at an early age and will benefit them in the future.

4. Open a Savings Account

     This is by far one of the easiest ways to keep save money nowadays. A stable and well-known financial institution to help you and your kids save money for the future is a must. Opening a bank account is easy and secures a child's future better and, at the same time, teaches them the value of saving.

5. Educate on the importance of FinLit or Financial Literacy

     According to financialeducators.org, "Financial literacy for kids is about ensuring that your child is educated on the best way to manage finances. This is a way of securing their future. This is because they will be able to learn how to manage money in all ways possible. This helps them spend wisely at all times."

     This only means that it's our responsibility to teach our kids the value of savings and guide them in terms of making effective decisions on their financial resources. It will be best for parents and teachers to work hand in hand on this matter because kids are spending 6- 8 hours in their classrooms and it will not hurt if FinLit will be a part of school curriculum.

     Aside from the parent's experience of handling their finances, FinLit is an important learning tool on becoming a wise spender and on how to manage their finances better in the future. Early this year, 

BDO Foundation, the Bangko Sentral ng Pilipinas (BSP) and Department of Education (DepEd) are ramping up efforts to maximize the benefits of their financial education program for public school students through the K-12 curriculum. DepEd secretary Leonor Magtolis Briones recently issued Memo No. 32, Series of 2019, announcing the dissemination of the financial literacy learning resources in all public schools nationwide.

5 Ways to Teach Kids the Value of Money
photo from BDO websites

     Developed by BDO Foundation in partnership with BSP and DepEd, the resources consist of ten sets of educational videos, lesson plans, and discussion guides on such topics as savings, budgeting, and entrepreneurship, among others. The issuance of the memo formalized the integration of said materials in Kindergarten classes and subjects like Araling Panlipunan, Edukasyon sa Pagpapakatao, and Mathematics for elementary students.

     The learning resources for Kindergarten pupils focus on saving and the value of money. The Araling Panlipunan materials teach students how to save and when to spend by identifying needs versus wants. The Edukasyon sa Pagpapakatao lessons discuss the importance of hard work and resourcefulness in earning extra income. The Math classes, on the other hand, cover budgeting and financial planning. These materials are available on DepEd's online learning portal, where they can be readily accessed by teachers and trainers.

     So to all the parents, it's time to teach your kids the value of money with these 5 simple and easy ways. It will be complicated at first but once you live by your example, trust me, your kids will follow you and will give importance to their finances when their ready to do it on their own. Start teaching your kids the value of money and how FinLit helps them learn more about their finances better.