“Teach your children the power of independence and responsibility; it’s a priceless legacy of wealth.” – Unknown
It’s back to school again for the 27.6M Filipino students expected to enroll this SY 2025-2026. And as it was during my school days, these children will again be taught the same standard curriculum outlining the specific knowledge, skills, and understanding that students should acquire at a particular grade level or subject area. Unfortunately, the standard curriculum used by most schools and universities, still do not include a subject on financial literacy which should be teaching students on basic money concepts.
Why is it important? Aside from teaching them the basics of math, science, social studies, religion and good manners, teaching our children early on about money is crucial for their future success, as it empowers them to make informed and smarter financial decisions. Studies show that children who had financial education at school are more likely to have good money skills. Yet, only 4 out of 10 children said they had some financial education at school.
I believe that many schools and universities are interested to include financial education in their curriculum but a full curriculum and a lack of skills and knowledge on the subject matter maybe preventing them. While it is ideal to have a full subject dedicated to it, perhaps, as a starter, it can be integrated in some of the existing subjects, touching on the four mains areas of money.
Earning. Money is earned and does not come free. In today’s generation, where sense of entitlement is prevalent, children must, at an early age, understand the connection between work and money. It is earned when they work, not as dole outs from other people, the government, charity or luck .While we understand that parents want to provide almost everything for their kids, their kids must appreciate that money is limited in quantity, regardless of their parents’ economic status. I know a number of parents who make their children, as member of the family, take part in doing basic household chores. But if their children want to earn money for their personal spends, they make them do additional tasks. Every summer, during our childhood years, we helped our mom sell “halo-halo” and banana que. In turn, my mom “paid” us small amount which we spent on summer activities with our friends. This introduced our young selves to activities and ideas for earning money. Teachers can ask students on what tasks/activities they can do to earn money. This way, children learn the concept that money is a reward for working.
Saving and Investing. When kids already know the concept of earning, the next step is to teach them to save all or a part of the money they earned. When they learn how to save up for a toy today, they’ll know how to save up for a cellphone or a car in the future, debt-free. When our children were in grade school, we gave them piggy banks where they saved part of their allowance. The incentive was, we matched the amount of money they saved at the end of the year. Now, part of teaching them about money matters includes knowing where to put savings. Initially, we put their savings in their own bank accounts. Later, when they were already in high school, we transferred it to Mutual funds. This taught them the concept of investments. They got excited to see their money grow but were aware that they can also lose. My son is doing his own investing and stocks trading since he was in college. If the teachers have no personal experience, they can invite resource persons to share. This lesson introduces students to the basics of growing their money through saving and investing.
Spending. Most kids save money so they can spend on their personal wants. Let them enjoy their money and experience the happiness of buying something they want with money they (earned and) saved. Children in mid-grade school can already be taught to manage small amounts of money. That’s why parents give their children allowances, as this is the first step to teaching them the concept of budgeting. In the beginning, our children had difficulty budgeting their weekly allowance. They would spend everything mid-week. The first time, we gave them additional money. But the second time, we imposed tough love. Then they learned to budget properly. By guiding them manage their allowances in childhood, children can appreciate and develop proper spending habits as adults. My children, who learned early on to spend only what they can afford, are still allergic to credit cards and would prefer saving for and buying stuff in cash. Teachers can ask students to share and have a discussion on how they budget their allowances.
Giving. The fourth and equally important money concept is giving. As they say, it is better to give than to receive. When you are able to do smart money moves, you are in a better position to give and help others. Nothing is more rewarding and fulfilling than being able to give and share your financial blessings. Back then, a portion of the saved allowance of my children was for the Sunday mass offertory. At a young age, they knew how it feels like to give out of their own pocket… a trait they carried as adults. Teachers can ask students to initiate small charitable projects using money saved from their allowances.
Learning these four areas will give our children a good head start in understanding money management which is crucial as they enter adulthood and experience the real deal of life. It’s now up to us to ensure that the next generation is prepared to thrive as woke and responsible adults with good financial sense and understanding. After all, life goes beyond the ABCs and the 123s.
