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
June 24th, 2009 at 7:20 pm
sizing up the situation , we look on the issue on perspective influence by where our place of residence is and the financial status we are in. in my city, koronadal city at that.
500 pesos can do many things to earn more, yan ay kung kaya mong gawin.
kaya mo bang magtinda ng aroz caldo ng naglilibot sa bahay bahay tulad ng nagaalok ng avon pruduct. kaya mo bang maggawa ng biko at ilibot sa buong paligid. maraming magagawa ang 500 pesos at yang ay kung kaya mo.
alam mo ang pagtitinda ay palakasan lang ng loob at medyo pakapalan lang ng mukha dahil siyempre medyo nahihiya kapa pero sa matagalan at sanay kana ang mahalaga ay kumita ka sa malinis na pamaraan
caldo caldo lang yan biko biko pero kayang kitain ang hinahanap mong 8.5 percent pa sobra sobra pa. hindi nga lang class pero may malinis na perang kita. okey ba hijo?
June 23rd, 2009 at 1:57 pm
Parents should really teach their children the value of money and how hard to earn it.
June 14th, 2009 at 9:01 am
Ok, let us stir up the pot some more.
You have 1,000 pesos. Mangrey says buy shoes worth 500 pesos ( a pair that presumably lasts a year ) and invest the remaining 500 pesos so you can buy better shoes, say after a year.
But next year the cost of that pair of shoes would have gone up in line with the inflation in prices of goods. The 500 pesos invested now would have to earn enough to offset the effect of inflation. I wonder where I can invest 500 pesos that would earn 8.5% pa ( our average inflation rate ) ?
June 8th, 2009 at 10:05 pm
About this shoe debate.
My mom used to buy me leather shoes that ranges from 1,200 to 1,800 pesos before when i was in grade school and high school. Well, those shoes that she bought for me lasted a full 2 years before it actually breaks down. If it weren’t for me begging my mom to buy me new shoes every school year, and for me at puberty stage then, i could have worn my leather shoes from 1st year up to until 3rd year HS.
Now, i am sidelining as catering crew. I bought for me a shoe worth 900 pesos. Guess what, my shoes didn’t even last 6 months. I needed to bring the shoes to our neighborhood sapatero to get it fixed,soles and all, for 400 pesos! Now, if i bought a 1200 peso pair of shoes, it would have also lasted for more than 2 years without any repairs.
I am born poor, but I guess buying a 500 peso shoe is too much. It really wouldnt last a year.
Another experience, I got my back pay from my past work, and bought a pair of basketball shoes worth 4000 pesos. It is really very expensive. But it has already been two years, and the shoes is still as fresh as brand new. on the other hand, my current officemate sold to me pair of basketball shoes worth 1000 pesos. Now, just after 4 days of slight use, “nakaangat na yun gilid ng swelas.”
So, in my opinion. we not only have to spend wisely, we need to save up wisely too.
June 7th, 2009 at 7:51 am
thank you karen for the clarification and for participating in the discussion. now it becomes healthier. thank you.
we are on money smart==in the ways of earning, wise spending, saving and investing.
one shoes for 500 pesos good for one school year
one shoes for 1000 pesos good for two years.
buy the 500 peso shoes and invest the remaining 500 pesos for additional capital
for your livelihood endeavor and earn extra from the additional investment and saving it to buy later on, in life for better shoes.