Archives, Parenting

How to Raise Money-Savvy Kids

Teaching children the fundamentals of financial literacy need not be difficult. Even if you don’t have a professional background in finance, it can be easy to guide your kids through the basics of money, budgeting and saving. Allow me to draw on my experiences and share the following few simple tips on how to raise money-savvy kids.


Set a budget.

Giving kids an allowance will help them learn to handle money by themselves. This can be a good opportunity for you to teach them about short- and long-term saving as well as the importance of good spending habits.


If your kids ever ask you for a loan, it’s best to say no. Be a bit stricter when it comes to their allowance so they’ll learn to make the best of what they have and make smarter decisions.  Of course, you shouldn’t shy away from teaching them when and how to borrow and lend money. Tell them about your own experiences and impart valuable lessons from when you took out a loan from a responsible lender or lent money to a friend or relative in their time of need.

Talk to them.

Kids can be an inquisitive bunch. When something as intriguing as the subject of money piques their interest, they will be quick to ask questions. And when they do, it’s best to introduce the subject casually. Don’t downplay the importance of money by not responding to their curiosity. Every now and then, work money into everyday conversations. Children must learn at an early age that while it’s important to be careful with finances, it’s not something that should be scary or inaccessible. Instead, make sure your children know that handling money in a smart and frugal way is essential to a successful and happy life.

Let them decide.

Allow your kids to make their own financial decisions. Their spending habits don’t necessarily have to match your preferences. While you can tell them not to buy certain items, you should let them spend their savings on something they really want. If they end up regretting the purchase, they’ll surely learn a valuable lesson about planning and budgeting.



It’s also a great idea to involve kids in household shopping. Preparing the grocery list and deciding which coupons to use can be an exciting learning experience for them. Taking them to your weekly supermarket runs will teach about the importance of planning, saving and finding the best value for their money. When they’re older, bring them to the bank so you can show them how banks work. Encourage them to ask questions.

Be a good role model.

Teach by example. Kids are more likely to do what you do than do what you say. Your actions should reflect a healthy understanding of good money management. If you show them how committed you are to budgeting, planning, and saving, they will follow suit. Eventually, when they’re older, you can be more transparent about your family’s finances.


This is a guest post by Maricor Bunal – author / blogger from Loan Solutions PH.



  1. I’m really thankful to my Nanay that she taught us, her children, at a very young age to become thrifty. We grew up not to be big spenders and only buy things that are necessary.

    1. That’s good to know! I guess good parenting is when you teach your kids to save up and be a smart spender. It will benefit them in the future. Just like how you benefited with your Nanay’s teachings about handling finances properly. 🙂

  2. Financial literacy is a must for kids so they will know how to handle money. I agree with being a good role model because kids follow our actions more than our talk. I hope my son will be a good steward too.

    1. I agree! Good thing, everything now is searchable on Google. When I was still starting to learn about handling finances and investing, si Google ang kaakibat ko talaga. So I guess, the future generation, especially our kids, will become smarter when it comes to handling finances.

  3. It is very important to teach kids about finances so they can learn how to value money and the things we buy.:)

  4. Parents should proactively teach children the value of handling finances well even at an early age in a manner they would understand.

    1. Yes, kahit mag-start lang with coin banks. 🙂

  5. I agree, being an example like taking them to a bank, and giving them responsibilities – letting them decide,are good ways to teach kids how to manage their money.

    1. True. When I was a kid, I remember my father taking me to the bank and letting me approach the table where the money is to be deposited. I’m the one who gives the money, especially if coins, sa banker. And natutuwa sila sakin ‘pag ganun kaya gustung gusto ko rin yung idea na nagdedeposit ng pera sa bank. 🙂

  6. It’s very important to be able to raise money-savvy kids. That way, we are confident that wherever they go, they can learn to take care of themselves. I’ve taken Nate to the bank several times, he likes to withdraw from the ATM and he also helps deposit money through the machine. I agree with being a good example to them, I hope that I can be that to my son always.

    1. Ang galing naman ni Nate. Marunong na syang magwithdraw and deposit ng pera sa machine. 😀 At least he has the idea already on what banks and ATMs are for. 😉

  7. I should really plan on how to teach my kids on how to save. My mom taught me when I was a kid but naging magastos pa din ako hahaha. We should really instill the learnings as soon as they fully understand it na.

  8. This may sound weird but we don’t give my daughter daily allowance and she’s in 9th grade now. From time to time though we give her P100 whenever she wants to buy lunch from school. She earns money though- she helps her Dad with his powerpoint presentations, does book layout, and other computer-related stuff since grade 4. She also helps me with bank errands, too. 🙂

  9. I agree that we need to set an example to our kids. My hubby and I are very frugal and as early as 3, we teach our son to be the same. Mas maganda na habang bata matutunan na nila how to handle money wisely. 😉

  10. My parents thought me to be financially wise, even from a very young age. By the time I was 18, although they paid for my tuition, I worked for my allowance. And it paid off because I know what it’s like to work hard for my needs so I value my work. This is something I’m teaching my two kids as early as now.

  11. ceemee

    These are great tips. Children must learn about the importance of budgeting and spending wisely. I save money in the bank for my kids. Hopefully, they could get to learn to deposit in the near future.

  12. I think my little girl’s too young to understand something like this, but in the future I will definitely teach my daughter the value of money. 🙂

  13. As parents it is our duty to educate our children to be financial savy. These are really wonderful tips.

  14. I think handling money well is one skill that would significantly impact our child’s life.These are great tips.I hope we could be good examples to our daughter.

  15. We’ve just started giving money to our 3rd grader and let him decide spend but set aside for his savings. At the age of 2, I opened a JR savers account and now he’s already aware that he has money in his ‘BDO’, so whenever he receive cash gifts from relatives, he immediately think of putting half of it for his savings.

    I agree that we have to be transparent and discuss with them our house expenses so that they know what to prioritize.

  16. Reading an article like this makes me want to start teaching my kidals about financial literacy. 🙂 I need consistency in this one. We started saving but tend to forget it along the mid of the year. 🙂

  17. Money was never discussed to me when I was a kid. Kaya siguro palpak ako sa budgeting haha. I am trying to ensure that my kids do not make the same mistakes by making them a part of the money discussions at home. Great tip!

  18. Financial education should start at home. To be able to teach our kids how to budget and be money wise, I agree that we should be a good role model to them.

  19. This is something I am trying to instill with my little girl. We want her to learn the value of money but at the same time strike the balance that it should not be the most important thing in the world. 🙂

  20. Great tips. They are some of the things that kids need to learn at home. But I hope one day, the schools will be more aggressive in teachings kids about money.

  21. We can’t deny that ‘money makes the world go round’ since if we don’t have it we will not survive at all. Teaching kids the value of money is a must for them to be wise in handling their finances at any stage in life. Kudos to your efforts.

  22. hahahaha
    sabi nga ng anak ko, need daw nila ng tyane para makakuha ng pera sa wallet ko
    pero now, sila na ung sobrang galing humawak ng pera
    it’s a good thing na they learn the value of spending because di madali kitain ang pera

  23. I agree. My hubby and I always talk to the kids re: money matters para maintindihan na nila habang bata pa sila na di basta basta napupulot ang pera.

  24. These are all great tips. I think one of the most important is to be a good role model. Kids follow by example 🙂

  25. Being a good role model would be the hardest one but it builds the foundation of financial literacy. Kids really learn more by observing compared to knowing the concepts. Buti nalang my son still doesn’t know money. It gives me more time to be more responsible with my finances 😀

  26. At an early age, I opened a bank account for my children. This was my first step in teaching them how to handle their finances. It is where they put the money the money they get whenever there is an ocassion. So far, so good. But I know teaching them how to handle finances doesn’t stop there so as much as possible I really bring them when I do groceries and shopping. 🙂

  27. I love all the tips, but the last one especially rings true! I’m starting to teach my son to be wise with money, but he will never learn how to do it unless he sees me being wise with my finances, too.

  28. Ayi

    Being a good role model is a must, especially when raising our kids. Once they see that we practice what we preach, they will follow too 🙂

  29. Janice

    Great tips! It’s really best to start them young when teaching them about money and saving. I try to do the same with my kids.

  30. Great tips! It’s really best to teach them when they’re young so that they grow into it.

  31. My mother taught me in high school to stick on a budget and be very loyal to it. That’s a thing I still practice these days even when I have more money to spend now than 17 years ago 🙂

  32. Children should really be taught how to save so they’d grow up responsible. They should know at an early age the value of money and hard work.

  33. I agree, the best role model will be us. Minsan kasi natututo lang tayo pag nabaon na sa utang. We should not let that happen to our children.

  34. Ma.Lhourdes Mercadero

    I always tell Chelsea to buy things that she really needs. I also teach her not to buy toya every week instead we agree to buy her toys every month. She have this new little piggy, where she save her coins.

  35. I agree. The lessons we teach our kids may not be absorbed fully if we do not practice what we preach. We should act as their role models. Teaching our kids about finances and savings at an Early stage may be advantageous.

Let me hear your precious thoughts! :)

This site uses Akismet to reduce spam. Learn how your comment data is processed.