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Bantay OCW (Ang Boses ng OFW)

Financial literacy for children

/ 12:03 AM March 24, 2013

Young and carefree. Will children they be like that forever?

Bantay OCW financial counselor and Pera Eskwela segment host Joyce Baluyot Deloviers recently noted that more often than not, children are excluded from discussions on financial planning.

Financial planning is not an activity for the forties set only. Starting them young will create a financial mindset—a trait of the potential investor.


Delovieres shared the following points on how to educate our children on money matters:

1. Orient the kids on the concept of money—its availability and value. When to start this orientation? As soon as they know how to ask for money.

2. Work out a spending plan with your kid.  The allowance should be enough to cover his expenses and at the same time provide leeway for unexpected purchases or events. I know of parents who give a certain amount of money that should be untouchable unless there is an emergency. For example, a flood in the school area stranded them and they need food and supplies; or a transport strike disrupted their usual route home, causing additional fare expenses.

3. Have a lifestyle-spending plan for kids. Kids are often susceptible to enticing promotional activities in media. They are  updated on these promos. They know the latest trends and gadgets. They also take for granted that malling comes with purchases and food binges.  Before going out of the house, discuss with your children what they can buy and can’t buy. Latest fad magazines and comics or CD games and movies could eat up a lot of the budget. Schedule purchases or encourage them to save up from their allowance. Primary school age kids might need more emphasis on this since they are likely to throw tantrums and public displays of frustration. How many times have we seen a kid wailing his head off his desire for a new toy?  Be specific about what and when they can purchase things, and how much is the limit. Authority and control are the key factors here.

4. Manage windfall money.  Cash gifts should go to savings. If something is needed, discuss this with your children and guide them  into determining if the item is a want or need. Sudden windfalls can turn whims into “needs.” Also, when depositing money in the bank, take your children with you and show them how much they have saved.  This will inspire them to save more.

5. Introduce the concept of investing as you go along. Find ways to show your kids that savings grow.

Of course, all these can only happen if the parents themselves have been oriented and educated in the savings and investment options available to them.

As parents, it is our responsibility to raise kids


that are not only self-sufficient but also productive and participating citizens of the country.

Delovieres concluded that money concepts and money management have their roots at home.

Susan Andes, aka Susan K. is on board at Radyo Inquirer 990 dzIQ AM, Monday to Friday 11:00 a.m.-12:00 noon & 12:30-2:00 p.m. with audio/video live streaming: Studio: 2/F MRP Bldg.,

Mola St., corner Pasong Tirad St., Makati City. PTV 4, every Friday, 8:00 p.m.-9:00 p.m. & GMA News TV International. Helpline is 0927-6499870 and e-mail address is

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TAGS: Children, Family, financial literacy, OFW, overseas Filipino worker
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