IN general, each generation lives a better life than the generation before them. I distinctly remember my amah (Fukien for grandmother) telling me how each grain of rice was precious because they lived in the mountains. I also remember asking my granduncle why he chose to try it out in the US. He said he didn’t want to be a burden to my grandfather. Our great grandfather died very early and it was my grandfather who had to raise his siblings, as well as his own family.
I think the biggest influence I have on the value of money is my dad. He keeps his lifestyle simple. When I used to do his expenses in the early-1990s, he spent only P5000 a month. He would write his expenses daily on a piece of paper, which he’d put in his polo pocket. He drank his coffee at McDonald’s with his friends. Even now, he still rarely drinks Starbucks because he feels it’s too expensive.
I learned three important lessons from my dad about money. First, savings is key. Second, savings allows you to invest, buy things you really need and want, and enables you to help others around you. Last, and for me the most important, money does not define you.
My father doesn’t believe in being flashy. Maybe that’s why he is the ultimate Toyota fan. He buys a Toyota and maintains the car religiously in a Toyota dealership. He doesn’t care that his car is at least 10 years old. He wears his Reva sandals. He owns valuable things but buys them for his personal satisfaction.
For today’s parents, we try to give our kids the best. Before, when we wanted something, our parents had to save for it. Today, it’s easier for us to say yes. I’m always fearful of raising my kids without the drive to strive. I hope to instill in them that hard-earned money bears so much more fulfillment than hand-me-down wealth. More than that, I always teach them that the measure of a person’s success is not how much money they have, but how they utilized that wealth for the better good.
Below are some of my attempts to teach my kids the right value of money:
- Model work as the source of money. My kids see that what we spend as a family comes from hard work. We bring them to the office and work trips. I like seeing them role-play adult work.
- Teach saving at an early age. I got my kids a small bottle each to save their coins when they were kids. I have one myself. Once it’s full, the bank changes it to full paper money. I show my kids that one coin bank of change could total up to at least P1,000.
- Invest for their future. When my kids turned 6 or 7, we told them that we put up an investment fund for each of them from all the red envelope money they get for special occasions. So, when they receive any gift or prize money, they can choose to also invest their money in that fund.
- Spend what you can earn. My father-in-law gives my kids monetary reward depending on which honor roll they get. When we get to the toy store, I would tell my son that I would match the amount. Whatever the total, that’s the value of the toy he can buy. If he wants to buy something more expensive, he has to add from his previous savings.
- Enjoy the fruits of your savings and labor. Travel for us is our family’s reward for a year’s hard work. Once the New Year sets in, I always tell my kids that the whole family needs to save for our summer vacation. The kids would consciously do their part, like have fewer requests for Starbucks.
- The ultimate purpose of making money is to help people. This is our family’s common vision. I believe this is what keeps our marriage stronger. We always show our kids that the right value of money is to be able to share its benefits beyond our own family. We show this first with the people at home—our household help, security guards and utility personnel. Whenever we have a small gathering in the house, we always prepare a platter especially for the guards. Once a year, my husband gives away his used-but-in-good-condition running shoes to people in his hometown.
Today, my kids show the right value of money in their own ways. Meagan is an eager basketball varsity team player. My husband started her with good-quality Brooks cross trainers. It lasted her close to two years until it bore a hole. Whenever we offer to buy her a Nike, she would say, I want to buy them when I’m a better player. This year, they won the basketball championship for Misa. She asked me where could she buy her Nike cheapest. For my son, when we travel, I give them a personal budget. My son would know how to multiply his money by saving up on occasions. He would “save” a birthday gift or honor award from my dad and sister, and “claim” them when we travel.
In Meagan’s words, “I think it is important to teach our children the values needed to make money, and the values needed to spend wisely.
The main values in making money are perseverance and determination.”
1 comment
thats all great, i do the same with my kids, But unfortunately most Filipinos spend all they have then try to borrow more to spend