CHILDREN today have a strong sense of self-entitlement, which is defined as the false feeling that someone inherently deserves something without doing anything to earn it.
Needless to say, this is a growing problem among parents.
But how do we prevent this kind of problem from happening in the first place? First, we can start by teaching children effective money habits. Here are four important lessons, which we got from money-savvy parents:
- Help your children develop smart money goals. Burn Gutiérrez of “Rock to Riches” believes in finding out what your child’s passion is, and encouraging him or her to save up for a specific item related to it.
“If children are into music or sports, encourage them to save up so that they could buy that brand-new guitar or their favorite Kobe shoes. Set up a whiteboard/blackboard and make a chart showing the progress of their savings until they reach the price of the thing that they really want to have,” he says.
For children to associate saving money into something specific, it’s important that they know when they want to buy it, how much their target amount is, and how much they are willing to save up for it.
- Let them know if an item is “cheap,” “expensive,” or offers good “value for money.” Garry de Castro of Financial Planning PH describes how he develops money habits in his children: “We first teach them the concept of saving by giving them piggy banks. When they got older and I bring them to the toy stores, I ask them to read the price tag and then I’ll tell my children if the merchandise is mahal or mura [expensive or cheap].”
As parents, you want to develop your children’s sense of frugality. You want to teach them the value of money. Just because they can afford it does not mean that they should buy the product.
If an item is deemed to be expensive, bring them to another store where they can compare prices. Tell them to look for a similar item at a lesser price. This way they get to appreciate the money that they were able to save.
- Pay them for the job they do. ANC On The Money’s Edric Mendoza’s teaching style is an appropriate example: “We don’t give allowance to our children, instead we pay them for the jobs they are made to do. Sometimes they will do something with me at an event, and they get paid for that. Other times they will prepare a report, or finish a home-school project on time, and they get paid for that.”
Why is it important for children to realize that money is not easily given—that it’s supposed to be earned?
His answer: “We instill in them the idea that they are not entitled to receive money; that they have to work to get it. At times, they will realize that it isn’t easy to earn money, and they have to struggle to obtain it.”
- Let them have summer jobs that will enhance their talents and increase their appreciation for earning money. FQ Mom Rose Fausto had this to say about money habits: “Summertime for my kids is an opportunity to earn extra income, instead of enrolling in summer classes of all kinds. They have given dance classes, produced a recital, taught guitar lessons, etc., for a fee.”
Don’t just take her word for it. After all, she was able to raise three money-savvy teenage boys who are now doing their best to spread the word about financial literacy.
The plain lesson is: If you have not worked for it, you’re not entitled to get it. That’s just the way the world is.
As a parent, do yourself and your children a favor by teaching them these money concepts while they’re still young. You’ll thank yourself for it.
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Lianne Martha Maiquez Laroya, is a registered financial planner and financial advisor who founded TheWiseLiving.com and YoungPinoyMillionaire.com, two web sites dedicated to teach you about money management and investing. Visit her websites and get your free copy of her book, OMG! Where Did Your Sweldo Go? Connect with Lianne on Twitter, @MsLianneLaroya