Being a parent is not easy. You need to prepare your kids for the future and make sure they are equipped with necessary knowledge and learnings in order for them to survive. Even if you are miles away because you have to work overseas, this is not an excuse to pass on important lessons to your kids, which they will carry on later in life. In fact, that is part of your responsibility as a parent.
When it comes to important lessons, this includes teaching them about money. Here are some basic financial lessons you should teach your kids:
Money Lesson No. 1: Money is earned and worked hard for.
Living as an OFW could make earning money easier for you compared to working in the Philippines. Still, this doesn’t mean you should spend your money every time your family asks for it.
One of the important lessons you need to teach your kids is that money is earned and worked hard for. It is something you don’t get out of thin air or grow out of trees, rather a reward for the sacrifices you made while living and working abroad.
There are several ways to teach them the importance of money. When you go home for vacation, try holding a garage sale and sell items you don’t need but are still in good condition. If your child is good at something, say baking goodies, encourage your child to bake and then sell it to friends or neighbors. This will make your child feel how it feels to earn money.
Money Lesson No. 2: There is a difference between needs and wants.
First things first. Needs are necessary expenses that you cannot get away from like water, food, and shelter. Yes, you can look for cheaper alternatives but it is something necessary for survival. On the other hand, wants are expenses that you don’t really need and can be delayed. For instance, a new gadget, staycations, shopping for new clothes and shoes, and eating out in restaurants.
Therefore, teach your kids to prioritize needs over wants – a money lesson they need to learn as early as possible. Practice the concept of “delayed gratification” where the want will be used as a reward for, say good grades or good behavior. Teaching them the difference between the two concepts will help your child make better decisions in money as they grow up.
Money Lesson No. 3: Save up.
This is important. Many Filipino families don’t have enough savings that will help them last for a month – and it’s not a good sign. In fact, your family shouldn’t be one of them.
To make that happen, you need to instill the importance of savings to your kids even before you leave for your job overseas. Make sure that you set as a good example by showing your kids that you are also doing your part to save. Give every member of the family his/her own Money Bank wherein the money saved will be pooled in the Family Fund. This teaches your kids on how to responsible with money – a trait they can carry with them as they get older.
Money Lesson No. 4: Think of ways to grow money.
Saving is good, but don’t stop there. Saving money in the bank is a good start, but if you want financial freedom, then you should teach your kids about investing as well.
There are many ways to invest money even with little amount. Explore your options and learn about them as a family so you can decide what’s best. This should be a team effort and everyone must be involved.