May 2009 Archives

PERSONAL finance experts encourage teaching one’s children how to handle money. It starts with letting them know how valuable it is, and what happens when they spend it or save it. My parents never sat down with me to teach me about handling money. But from observing them through the years, I have learned valuable insights I practice up to now. Here are the money lessons I learned from them: 1.  Money does not grow on trees. You have to work to have some. No work, no money. My parents got married a few years after the liberation. Times were hard. Since my dad’s earnings as a government clerk were not enough, he supplemented his income by becoming a security guard at night at the pier. And when this still wasn’t enough, he would borrow an uncle’s jeepney and drive it a couple of trips around Manila ferrying passengers. When he got back from driving the jeep, he earned enough to buy powdered milk for my kuya, who was then a baby. Hard work pays. 2. Prioritize needs. My dad said he told my older siblings as they were growing up to think twice if they want him to buy them something. That is because he will have to work hard and do all he can to give them what they want. Needs come first. 3. As long as it works, use it. I remember we still used a black-and-white TV in the 80s when almost everyone else had a colored TV. Let’s just say we maximized the use of that TV until it was time to upgrade. No buying on a whim here. I think this is why I hold on to my cellphone until it literally falls apart or refuses to budge. I use a cellphone unit for an average of 3 to 4 years –just about the time it dies on me. 4. Invest in things that matter. Shoes, for instance. You can get two to three pairs of cheap shoes for the price of one pair of good quality leather shoes, but in the long run, you will spend more when you get the cheap ones. They don’t last long and you’ll have to buy a new pair again in just a few months. This has taught me to think twice when buying anything—will I get my money’s worth? Will it last long? Will my investment pay off? 5. Save. Live within your means. My dad has been known to be “kuripot” but he just makes sure he doesn’t use up all his paycheck. He has built up an emergency fund long before finance experts have thought of the term. Living within one’s means made it possible. Teach your kids how to handle money, not just by telling them, but by living responsibly yourself. Actions speak louder than words.--Karen Galarpe