Teach Kids About Money

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Bane comes with the boom in call centers here in the Philippines. Earning so much money from these high-paying jobs at a relatively young age can be so overwhelming to many call center agents. Such windfall could lead to binge spending. One concerned personal finance adviser, Efren Cruz, commented,

They tend to spend, not regularly, but on expensive things. Like buying things from a 24/7 store which sells more expensive things. They ride cabs to work or going home… Because they’re young, there’s a tendency to compete with each other, not just in the way they work but in the way they dress. I’ve heard stories like, in one call center, many of the ladies there have extended eyelashes. That will cost you… [1]

Noting the spiraling student loan and credit card debts, Beth Kobliner, author of the New York Times bestseller “Get a Financial Life,” offered this advice:

It’s pretty clear that adults don’t know much about money. To help the next generation avoid the mistakes of their elders, and to live financially fit lives, they need to be taught the essentials about money. [2]

As one saying goes, “The first generation makes it, the second generation spends it, and the third generation blows it.” King Solomon expressed many parents’ concern about turning over their hard-earned money to their children when they die.

I thought about all my hard work, and I felt depressed. When we use our wisdom, knowledge, and skill to get what we own, why do we have to leave it to someone who didn’t work for it? This is senseless and wrong. (Ecclesiastes 2:20-21, Contemporary English Version. Emphasis added.)

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Somebody said that, instead of worrying what would happen to your money and to your children when you die, why not teach them now how to handle money while you’re still alive? More than leaving behind money to them, teach them how to wisely spend, save, invest and give money. 

Blessed is the one who finds wisdom, and the one who gets understanding, for the gain from her is better than gain from silver and her profit better than gold. She is more precious than jewels, and nothing you desire can compare with her. (Proverbs 3:13-15, Contemporary English Version)

My good friend, money and life coach Chinkee Tan, noted in his latest book, “Raising Up Moneywise Kids,” that there are times parents are not keen in discussing money matters with their kids because they feel they are not good role models when it comes to finances.

What if we’ve made money mistakes in the past - or what if we are in the middle of a big money mistake right now? The truth is, if we are in this kind of situation, then all the more that we need to have that money conversation with our kids. We need to discuss with them the mistakes that we have made, otherwise, they will just repeat the same mistakes. Never allow these mistakes to go to waste. [3]

We’ve heard that a wise person learns from his mistakes. But an ever wiser person learns from other people’s mistakes. Let your children learn from your mistakes. 

Giving them wisdom is better than giving them money.

[1] Kristine Servado (19 July 2009), “How call center agents can save money,” ABS-CBN News, retrieved from http://news.abs-cbn.com/. Emphasis added.

[2] Laura Shin (15 October 2013), “The 5 Most Important Money Lessons To Teach Your Kids,” Forbes, retrieved from http://www.forbes.com/.

[3] Chinkee Tan and Kayla Tan, Raising Up Moneywise Kids: 10 Enriching Money Lessons To Teach Your Kids (Paranaque City, PH: Church Strengthening Ministry, 2016), 11. Emphasis added.