In a statement released by the Bangko Sentral ng Pilipinas earlier this year, the financial literacy of the average Filipino continues to be disturbingly low. This finding is based on a financial literacy test wherein respondents tended to only know three out of the seven questions covering topics such as interest, numeracy and inflation.
Stemming from our apparent lack of financial education during childhood, this 'illiteracy' is carried over to adulthood.
In order to teach your children to be more financially literate and responsible, here are some activities and practices you can do:
1. Set up a savings account for your child.
As your child grows, so does his savings. Source: rawpixel.com from Pexels
In Australia, the parent or legal guardian of a child can set up and manage a savings account for him until the said child reaches a particular age. In order to maintain the interest agreed upon, the savings account will require you to deposit a particular amount per month and to make no withdrawals until the child is of age.
As your child grows, so does his savings.
2. Give your child a piggy bank.
A piggy bank gives your child a sense of ownership. Source: rawpixel.com from Pexels
Not only does having a piggy bank give your child a sense of ownership, dropping coins in the slot is a fun exercise for him.
What you'll soon discover, however, is that all the loose coins in the house keep on 'mysteriously' disappearing.
3. Play pretend.
Monopoly is a great game to play with your children to teach them about money. Source: Suzy Hazelwood from Pexels
Play shop or money-centric board games with your children to teach them about finances. Not only do these games enhance their counting skills, they also teach children about savings and budgeting.
4. Avoid saying that you don't have money.
"Mum has money, but she chooses not to spend it today." Source: Sunbae Legacy by Pexels
When you go to the shop and your child asks to buy a toy, break the habit of saying that you don't have money. As cliché as it may sound, negative remarks attract negative consequences. Not only will you have the reaffirmed belief that you lack money, your child will take on this mindset as well.
Instead of saying this, tell your child that while you do have the money, you're choosing not to spend it this time.
5. Be a good example.
Your money woes affect your children's well-being. Source: Zun Zun by Pexels
Children will typically adapt the money habits of their parents.
If you're loose with your coin, your child will more likely be the kind to grab every toy in sight to put in the trolley. On the flipside, if you're a tightwad, your child might be the type to start couponing at age 5.
Each parent will have a different approach to money matters, but what children should never be exposed to are arguments over money. According to a research conducted by The Children's Society, the money woes of parents affect the mental well-being of children, making them stressed, depressed and anxious.
While financial issues will always plague relationships, try not to expose or burden your children with them. You wouldn't want them to relate money with stress and worry.
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