Teaching Kids about Financial Literacy

 

According to research, many financial habits are formed by the age of seven. If good habits are not introduced to them or established early, it will be more challenging to guide our children in the proper direction. Based on my own experience growing up, it was difficult for me to adjust to 'adulting,' simply because I had poor money management back then. I used to see myself shopping online too often and would use such kind of life because I used to reason that it was a form of stress therapy. It took a while for me to set the records straight and learn how to save for the 'rainy days.' 

But as parents, we need to start educating our children about money matters in order for them to avoid the same mistakes we've had. I don't want my nephew and nieces to find themselves one-day missing rent payments or running up too much credit card debt because they were too careless. So, here I've made some tips to help guide the kids about financial literacy the fun and easy way:

Make them work for their money.

Children will learn to utilize money more responsibly if they have to work for it. Many parents give their kids an allowance each week to pay for chores. Giving a child an allowance can also aid with budgeting lessons. 

Allow part-time gigs

I allow my nephew Kyle to attend his band's gigs. He is currently the lead guitarist for the upcoming artist, Mizael. Provided that he will not neglect his studies. His studies should always be a priority. No ifs and buts about it. Aside from that being his passion, sometimes he would get singing gigs and he'd be paid for it. So it could be as simple as mowing the lawn of a neighbor or walking someone's dogs to the park--as long as they'd be able to earn money out of their own hard work, it's a good start.

Contribute to Purchases

If my nephew Kyle wanted to get something, I always see that he pays a portion of it. Every parent has probably experienced the pressure of constantly fielding requests for different video games or gadgets. Particularly younger children need to understand that you can only spend a certain amount on discretionary items purchased each month. Children will gain a better understanding of what goods cost if they are encouraged to pay half the price for a brand-new Lego set or a Barbie Doll accessory.

Encourage them to play online games that teach them the value of money

There are lots of free online money games for children that somehow give them at least a gist or understanding of how to be responsible with money. One website I've tried with Kyle is called mortgagecalculator.org/money-games. The site itself has a plethora of game choices and for sure, there'll be something you'd be interested in or at least catch your fancy. From simulation games to role-playing, adventure games among many others. Each game has its own characteristics or underlying objectives. And with different game categories and genres, they can also be classified according to the players' age.

Do you like to solve puzzles or micro-manage resources? Real-time strategy or role-playing games might be better suited for you. But no matter what your interest is, there is definitely a game genre that will appeal to your taste from the said website. 

Bangko Sentral ng Pilipinas: Money Matters For Kids Exhibit at the Gateway Mall

Cash, mazuma, dinero, dough, bread. These are just some of the many monickers of money. We use money to pay for the things that we need and get the things that we want. People have to work to earn it while most of us struggle to save it for the rainy days. Others who can very well afford do share it. But as parents, have we really taught our kids well on how to properly handle their own money? I strongly suggest you bring your kids to the Bangko Sentral ng Pilipinas Money Matters for Kids exhibit at the Gateway Mall, Araneta Center, Cubao. The said exhibit runs from August 2, 2013 to August 17, 2013 (mall hours).

Museo Pambata originally owns money Matters For Kids exhibit but it was turned over to the Bangko Sentral ng Pilipinas to further educate the youngsters on money. They actually plan to bring this exhibit to other parts of the country soon so that more kids will greatly benefit from it. 

 I honestly think that doing so will certainly help your kids to perfectly grasp the concept of saving, the difference between needs and wants, how to budget their own allowance, how to validate real money from fake ones as well as other educational trivia’s about money. And I can assure you that the kids will be having lots of fun while learning all these things. This isn’t your typical boring exhibit. This Money Matters For Kids exhibit is an interactive one!

Coins from other countries

Old money bills from the past.

 There are a lot of things and activities to do for your kids inside the exhibit. You can help your kid make his or her own money from the coin stamp section. There are also peso bill puzzles for you and your kids to work on. There are also lots of trivia and history about money as well as an imitation of a real bank called Bangko Bulilit where your kids can play either one of the tellers or the bank manager (yes, with a real computer and keyboard they can tinker with!).

Kyle shows off his supposed ATM card.

 Plus an automated teller machine with built-in atm card where your kids can ‘withdraw’ or ‘deposit’ money.

Children will surely have fun too with the market style way of teaching kids about needs vs. wants and how to budget their money wisely. There is a grocery cash register they can play with as well as grocery baskets. In fact, during our visit at the Money Matters For Kids exhibit, I saw a kid at managing the cash register while her mom playfully ‘buys’ items from her grocery. It’s such a great bonding activity for both parents and kids. 

Kyle withdraws from an ATM toy machine.

Kyle traced a rubber stamp to make his own coin. 

Kyle does a bank manager's job here.

Kyle mans the cash register while my Mom 'plays' with him as customer.

This calculator makes sure you are buying within your budget.

Twenty peso puzzle

Fifty pesos puzzle.

A young girl mans the cash register.

Kids are taught the difference of needs and wants.

I myself learned a lot through the said Money Matters for Kids exhibit. I’ve learned that Josefa Llanes Escoda (The Girls Scouts of the Philippines founder) is the only person shown smiling in Philippine peso. She’s the first woman to grace our money too. I’ve also learned the trivia behind the piggy bank thing. “Pygg” is a type of clay used for making various objects such as jars. People in the olden times saved money in these “pygg jar” and it has evolved into “pig bank”. Plus there is also a pig theory. In the ancient times, food scraps that would spoil were saved by feeding them to pigs. The said practice fattened up the pigs. When money came about, thus this cultural habit of saving food scraps by investing them in pigs inspired people to save their change in coin banks shaped like pigs.

Piggy banks and coin banks.

Mommies, take advantage of this opportunity to teach your kids all about money the fun and easy way. Come and visit the Bangko Sentral ng Pilipinas Financial Consumer Affairs Group exhibit of Money Matters for Kids at the Gateway Mall. Admission to the said exhibit is absolutely FREE! What’s more, kids who visit the said exhibit gets to bring home free Museo Pambata Money Matters for Kids activity book and a box of playing cards! (While supplies last)

Disclaimer: I am not compensated for this post. Opinions expressed are my own.