5 ways to teach your kids how to be money smart

By Maui V. Reyes for Yahoo! Southeast Asia

You know the saying, “give a man a fish and you feed him for a day, but teach him how to fish and you feed him for a lifetime?” The same applies to your own kids—while it’s easy to spoil, coddle, and shower them with absolutely everything their heart desires, it will be better for them (and you!) in the long run if you instill in them the value of saving.

Teaching kids how to be smart with money doesn’t happen overnight. We asked different parents how they school their kids in the proper way of money management.

1. Give them a piggy bank. Jen, a stay-at-home mom to two boys under seven, shares that she teaches her kids how to save by encouraging them to use piggy banks. “They come in cute designs, so using them doesn’t make it seem so boring,” she says. So buy them a piggy bank and encourage them to put in coins as often as they can.

2. Help them set a savings goal.
You won’t only teach them to save, but you’ll also teach them the value of delayed gratification. Ask them what they really want to buy, and use that as a goal for what they’re saving up for. Jen even gets creative by posting a picture of the toy or book her child wants on the piggy bank.

“Whenever they want to get money out of the piggy bank to buy something else, they’re constantly reminded of their savings goal,” says Jen.

3. Teach them how to budget. Dan, an events planner, taught his kids the value of budgeting at an early age. “We’d walk into a toy store and I’d tell them they could pick whatever they wanted, as long as it was P200 or below,” he said. “If they wanted to buy something more than that, they needed to use their own money.”

Teaching kids the importance of sticking to a budget can be tricky, and most parents find it time-consuming: after all, kids can spend hours in a toy store comparing toys to see which will give them the most bang for their buck. But be patient with them. These are crucial, money-management learning times that will surely help them when they’re all grown up.

4. Know when to “rescue” them. Living on an allowance can make it impossible for a child to purchase the toy they really, really, must have. Because of this, moms like Pamela, an advertising account director, makes a deal with her kids to “split” the costs.

“I tell them that I’ll pay for half of the toy. That way, they still realize that they have to save for it,” she says.

5. Help them open a savings account.
Many banks offer kiddie savings accounts, and it’s always a good idea to let your little ones familiarize themselves with banks at an early age. “My kids love the idea of having their own passbook,” says Pamela. “It makes them feel so grown-up!”

Help encourage them to save birthday and Christmas money by letting them deposit cash and checks themselves. Nothing makes them feel like a grown up as doing over-the-counter bank transactions.

Savvy Living asks: How did you learn about managing your money when you were growing up? How would you teach your own kids about money and saving? Share it with us in the comments section below.


Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

Latest News

  • Small tsunami generated in Pacific after earthquake Associated Press - Mon, Mar 30, 2015 11:31 AM PHT

    SYDNEY (AP) — A powerful earthquake rattled the South Pacific nation of Papua New Guinea on Monday, generating a small tsunami and frightening locals near the epicenter, but prompting no reports of damage or injuries. …

  • Heartfelt letter thanking pilot goes viral AFP Relax - 16 hours ago
    Heartfelt letter thanking pilot goes viral

    In the wake of the Germanwings crash and a particularly dark year in commercial aviation, a passenger’s heartfelt handwritten letter thanking her pilots has gone viral after being posted on Twitter. Uploaded by Cheshire, UK-based pilot, @jaidillon March 30, the photo capture has since been retweeted more 3,820 times on Twitter and favorited more than 3,000 times. The letter was given to a colleague from a passenger, says Jai Dillon on Twitter, and thanks the crew at a time when flyers are …

  • AP PHOTOS: For Israeli teens, military is rite of passage Associated Press - Tue, Mar 31, 2015 4:17 PM PHT
    AP PHOTOS: For Israeli teens, military is rite of passage

    YAKUM, Israel (AP) — Israeli high school seniors have more on their minds than prom and final exams. …

  • 8 Things I Learned from the Boss from Hell 8list - Thu, Mar 26, 2015 3:07 PM PHT
    8 Things I Learned from the Boss from Hell

    Don't let them get to you. …

  • Turin Egyptian Museum gets overhaul of pharaonic proportions Associated Press - Wed, Apr 1, 2015 4:02 AM PHT
    Turin Egyptian Museum gets overhaul of pharaonic proportions

    TURIN, Italy (AP) — For the earliest Egyptologists, a trip to the Egyptian Museum in Turin was considered indispensable. The museum's new director is seeking to return the almost 200-year-old museum to its one-time prominence, boosted by an overhaul of the collection and exhibit space of near-pharaonic proportions. …

  • "New wave" of GMOs: pink pineapples, purple tomatoes Associated Press - 10 hours ago
    "New wave" of GMOs: pink pineapples, purple tomatoes

    WASHINGTON (AP) — With recent government approval of potatoes that don't bruise and apples that don't brown, a new generation of genetically modified foods is headed to grocery shelves. …

  • Russian superhighway could connect London to New York AFP Relax - Fri, Mar 27, 2015 1:24 AM PHT
    Russian superhighway could connect London to New York

    Russia has unveiled ambitious plans to build a superhighway that, in theory, could make it possible to drive from London on one end to New York on the other. According to a report by The Siberian Times, the head of Russian Railways is asking the government to seriously consider his project dubbed the Trans-Eurasian Belt Development, the first modern transportation corridor that would link up the Pacific to the Atlantic Ocean. Plans call for the construction of a new high-speed railway and the …

  • Ancient Petra sees few visitors as Jordan tourism declines Associated Press - Mon, Mar 30, 2015 7:52 PM PHT
    Ancient Petra sees few visitors as Jordan tourism declines

    PETRA, Jordan (AP) — It's high season in Petra, an ancient city hewn from rose-colored rock and Jordan's biggest tourist draw. Yet nearby hotels stand virtually empty these days and only a trickle of tourists make their way through a landmark canyon to the Treasury building where scenes of one of the "Indiana Jones" movies were filmed. …


My New Year's resolution is to:

Poll Choice Options