The Ancient Greek philosopher Aristotle once said: “Education is the best provision for old age.” And, without a doubt, this remains the truth to this very day. Education was and is the best legacy parents can leave their children, not to mention the easiest. Giving them this education isn’t just limited to sending them to the best schools – by all means, if you can, do so – education is also about teaching them the necessary life skills, credit smarts, etc., to survive in this rapidly changing world.
Below are a couple of tips for this kind of learning, the kind that both parents and children can do together.
Thinking abundantly. A sort of winners mindset where you. You shouldn’t be telling your child that you can’t afford something that they want most of the time; rather, you should sit down with your kids and start discussing ways to earn money required to make the purchase fit. This creates a mindset of abundance in the child – so instead of being defeated by scarcity, they are instead shown how hard work and ingenuity can get us what we want and need. Money is always there; it is figuring out how to earn it, that is the question.
Business and investment. Starting businesses and investments nowadays is easy for young people, trivial even for some. In fact, it has become that simple that even children-with the appropriate adult supervision- can start a business or invest in something. And now, many such youngsters and youth are selling their products, food, and even services online. Take the time to Google some ideas for such a business, get the think-tank running. Of course, you gotta keep it simple somewhat, something that your child can think about, put up, and grow. As for investing, there are dozens, if not hundreds, of resources in various online libraries that can help you teach the basics of investment to your child and prepare him or her for a brighter future.
Spend on needs before wants. In terms of allowances given to the kids for school, teaching them that spending it on food, school supplies, and school requirements should prioritize toys, accessories, and other non-essential wants. These basic principles are the foundation for teaching your kids how to create a proper budget, with all the expenses and savings that come with it.
Savings for your child’s future. These are basic reasons for saving regularly and consistently: we save for anticipating emergencies and preparing for a future, essential expense. And these should be explained to your kids clearly and concisely, and thoroughly. Give examples that your child can relate to, as well as helping them find ways to save money to introduce the habit, such as saving their school allowance money.
Getting the habit of saving money to stick with your kids becomes much easier when working with your bank. For example, BDO has a specially designed Junior Savers Account for kids and the like. With an affordable initial deposit and a low maintenance balance, the Junior Savers Account is easy to open and maintain at any BDO branch. https://www.bdo.com.ph/personal/accounts/peso-savings-account/junior-savers
Once your kids already have a BDO Junior Savers account, help them grow their funds by scheduling regular deposits using your BDO Digital Banking account. Setting the amount and date of transfer can easily build their savings.
Learning to save money is the basic step for anyone, even a child, to learn proper money management and, eventually, start building wealth. By taking these first steps with your child, you’ve already given them true riches.