WHEN one is single, one can pretty much live for the self. There's more money to go around to buy that new cellphone and that new pair of shoes, and to go out with the barkada for gimik nights.
But when one starts a family, everything changes. Suddenly, there are responsibilities: mouths to feed, bills to pay, and future needs to prepare for. The days of frivolous spending are over. As financial journalist Salve Duplito, pioneer Money Smarts blogger, wife and mother of four said, “Motherhood made me realize that 'irresponsible with money' and 'good mother' don't go well together. As parents, it's up to us so the family won't get buried in debt.” This "spending addict" has reformed and is on a crusade to help others learn to handle their finances well.
In her recent talk at the Family Finance 101 seminar organized by Money Sense magazine, Salve shared these basic tips to handling family finances responsibly:
1. Use things sparingly, carefully and thankfully.
The things that we have and buy are blessings and should be used up wisely. Salve advised that kids (and dads) be trained to take care of their stuff well so they will last. She also believes in the “simot” mentality: Go through your pantry and use up what you can until your next scheduled grocery day. No emergency trips to the grocery to buy one missing ingredient because chances are you will buy more than just one ingredient. Also, don't overdelegate to the maids, who may not be conscious of saving.
2. Think long term.
How much will a latte a day for a year cost you? It may be money better spent on tuition. Salve warned the audience against careless spending. Even buying a toy to shush up a wailing child may have long-term consequences in terms of finances.
3. Make smart plans.
Salve's precious tips include:
* Save 50 percent on transportation or gas weekly by being on time and planning trips wisely.
* Watch where you buy.
* A weekly meal plan can reduce food wastage to zero and cut your food expense by 40 percent.
* Convenience and quick fixes are very expensive.
4. Be a wise consumer.
Don't go to the grocery when you're hungry. Killing electric vampires can eliminate at least 25 percent of your electric bill. If you're a spend-a-holic, avoid going to the mall with cash and credit card.
5. Know your numbers.
A spending plan is the foundation of financial wellness. Create and use one that works for you. Salve advised the audience to skim off the top—to take out from the paycheck once received—your savings before you spend on anything. Anticipate balloon expenses (such as tuition fees) by saving up for them.
6. Enjoy yourself.
“Good money management is important but it should never go before family and relationship,” said Salve. She ended by asking the audience, “Can money buy happiness?” The answer is yes, she said, “but only when we learn to let go of it. It's not what we have that matters. It's what we can give.”
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HOW do smart dads handle money? In time for Father’s Day, we asked some dads to share valuable tips to you fellow dads out there. Here are some wise advice:
1. Live within your means. “The general tip is really ‘living within your means.’ It is an attitude that should not be equated to being stingy; rather, it entails planning the family’s lifestyle to cover the basic necessities, leisure activities, and savings. It is also an attitude that makes the family define its own happiness instead of being dictated upon by the happiness of others.” -- Noel M. Cortez, head of marketing and graduate school professor Dad to Popet (11), Peping (7), and Kimi (4)
2. Spend for experiences rather than stuff. “As dads, we have a tendency to lavish our kids with material things, partly out of guilt for not spending enough time with them and mostly because we just enjoy seeing the smiles on their faces. But their excitement is gone weeks or even days after getting something they want. So instead of buying more and more stuff, spend for experiences--trips to the zoo, the park, the beach--since memories of happy experiences last much longer than the fleeting enjoyment of toys and gadgets. Plus you get to spend quality time with them. More experiences, less stuff.”-- Heinz Bulos, editor-in-chief of Money Sense magazine and dad of Kimi (2).
3. Cut down on your unnecessary spending. You’ll be amazed at how much you can save. And don’t get discouraged when times are bad. A downturn also creates opportunities to earn good money.-- Benjie Oliva, commercial banking director for a leading multinational bank, and dad too
4. Teach kids about money early on. “Train up a child in his ways and when he grows old he will not depart from it. Teaching our kids financial literacy at a young age is very important. The best person to teach children about handling money is you. We cannot leave our child training to the TV, to teachers, to MTV, to their idols. It is the dad’s main responsibility.”-- Chinkee Tan, lifestyle trainer (www.chinkeetan.com) and author of the personal finance book “Till Debt Do Us Part” Dad to Kayla (8), Jethro (6) and Destiny (4)
Happy Father’s Day to all dads!
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
Most of us tightwads would rather bear the discomfort of sitting uncomfortably for hours, clicking through websites on personal finance and reading blogs like MoneySmarts just to learn more about financial management than subscribe to magazines that we can curl up in bed with.
From time to time, though, I make an exemption. Being the first and only personal finance magazine in the country, it truly deserves the P120-per-copy invesmtent you'll make. MoneySense is a fixture in our home and something that I give as a gift to some close friends. (The fact that I have a column there is definitely not the main reason for this! (smile)
This year, check out its new look and new sections just in time for its second anniversary.
There’s Savvy Investor, which offers investment primers and comparing stocks and funds, and also Income Earner, featuring money-making opportunities and career advice.
Its regular sections, like Easy Money has become more interactive while Smart Spender is now more diverse in advising how you can get the best value for your money.
This special issue also carries features like where to invest in 2009, how to know if your bank is safe, keeping your money secure this year of crisis, and how actress and multi-endorser Dawn Zulueta, continues to enjoy her hard-earned success. MoneySense also has stories on global franchises under $50,000, money market funds, personal loans, health insurance, and dollar time deposits.
Currently available in over 200 outlets nationwide, MoneySense is founded by veteran business and finance journalists with a combined 50 years of publishing experience. To learn more about MoneySense, visit www.moneysense.com.ph. For subscriptions, contact 339-3361, 728-1073 or email info@moneysense.com.ph.
