Want To Teach Your Child Financial Responsibility? Read This!

I have to admit — teaching my child about financial responsibility NEVER crossed my mind; not until I took my being a financial advisor seriously. I realized that maybe, one of the reasons why most of us suck at our finances (guilty mom here) is because this aspect was never a part of our childhood.

We often think that learning and handling finances is an adult job but while it’s true, I believe it won’t hurt to teach our kids about it while they’re young.

So if you agree with me, here are some tips to teach your child financial literacy.

Tip #1: Show Them How Much Stuff Costs

This is my personal favorite. My son’s already 7 years old so by now, he’s familiar with numbers. I told him that the more digits it has on the price, the more expensive it is. 

So whenever we’re in a toy store, I let him pick the toy he wants and look at its price. He always ends up picking toys that are less than P500. He knows that unless it’s a special occasion like it’s his birthday or Christmas, he can have whatever stuff he wants as long as it won’t cost a lot.

I know this might trigger some parents. Your approach might be different from mine (no judgment) but at the end of the day, we all want the same thing for our kids — to have the best possible life.

Going back, another way to teach my son about stuff and its costs is through Roblox. I don’t usually spend money on his Robux but when I do, we have a deal. For instance, his X-amount of Robux should last for two weeks so if he buys something, let’s say a sword, then he’ll only have this amount left in his account.

This practice is good for two reasons — one, he learns how to budget and along the way, he exercises mentally as he adds and/or subtracts numbers.

2. Be A Role Model

In the Philippines, there’s a saying that goes like this: “Sa mata ng bata, ang ginagawa ng matanda ay tama.” Kids believe that whatever we do is the right thing to do. That’s why they usually copy what we do

Whenever they see us swiping our plastic cards to pay for groceries, how we talk to our spouse about finances, or our practices when buying new things, they are likely to follow this, too.

So as parents, it is our responsibility to become a good example of making, saving, and protecting money, too.

3. Use Jars To Save

My son has the “traditional” saving jar — the tall bamboo container we usually get as a Christmas gift. Now while that helps, I found a better idea when it comes to saving.

Using a transparent jar, saving becomes more exciting as it gives kids a visual of how much money they already have. I mean, isn't it more exciting to see your money grow?

These are my top three tips when it comes teaching kids about financial responsibility. If you like this kind of content, be sure to visit my website or social media accounts:

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Thank you!