Saving coins: A simple way to teach the value of money

Lately, our 9-month-old daughter finds interest in small objects. And like babies of her age, she loves to put these objects into her mouth.

It's quite challenging to watch babies of this age. But for my wife and I, it's also a chance to teach her the value of money.

What? At her age?

Yes. At her age.

We believe it is possible to train our children to treat money the right way and from the right perspective.

HOW WE'RE DOING IT?

1. We opened a Mutual Fund Account. To maximize growth for the long term, we chose Sun Life's Prosperity Index Funds so that our money is invested in the top 30 companies listed in the Philippine Stock Exchange.

2. We invest at least Php 1,000 regularly to increase our number of shares.

To get an idea of how Mutual Funds works, read my article here.

3. We designated a goal for the Fund. In financial planning, all activities should have specific goals. In our case, we'll prepare it for her college fund.

4. We set aside spare coins. If you're like us, you'd find coins in our car, in our bags, in our jeans' pockets, on top of the computer table, under the sofa, and everywhere.

They're just everywhere. Most of the time, people ignore coins. But they're valuable. Sabi nga ng mga matatanda:

"Hindi mabubuo ang isang daan kung walang piso."

5. We let our child participate in saving. As young as she is, we let our daughter know that she's an important part of team. So, we teach her to put some coins we gathered into an empty 5 gallon container.

[Note: we watch her closely so she would not put those dirty coins and hands into her mouth. Also, we wash her hands with soap and water after the activity]

She may not understand everything now but we're sure that the right habits are slowly formed in her.

6. Set a goal for the coins. Again, goals are important. So, once the Wilkins gallon is full we'll invest it in Debbie's Mutual Fund account to purchase additional shares, and start saving coins all over again.

WHY DO WE TEACH HER THIS EARLY?

Let me be clear, I'm not saying that we're experts in parenting and are proposing a standard method. But let me share why we're doing this.

Parenting is not about giving your kids all the stuff you wish you had when you were a kid. Yes, we want to give our kids a better life. However, we're usually confused with what does "a better life" mean. Does it mean buying them the toys or clothes we never had when we were kids? Does it mean giving our kids everything they want?

If we do this, we're teaching our kids that the value of life depends on the things we have. Sadly, many parents today are too focused on their jobs that they use material things to compensate for the lack of quality time they spend with their children.

But parenting means guiding our kids to become responsible adults in the future. It is teaching them the values they need as they grow to independence.

Proverbs 22:6 "Train up a child in the way he should go, even when he is old he will not depart from it" (English Standard Version)

That means we have to be present regularly to see them grow and mature.

As parents, we won't be around forever. But for every moment we spend with our kid, we should do our best to impart important values and principles in life.

In this simple activity, it's not just about teaching her to put coins into the Wilkins container. It's helping her see the value of saving money.

By the time Debbie reaches college, that's around 18 years from now, we hope our chosen Mutual Fund performs well and be more than enough to get us through. More importantly, we hope she gets the value of saving money for the future.

How about you fellow parent? What's your plan for your kid? Put up a Mutual Fund now and start saving!

As a Financial Adviser, I can help. Send me a message for questions or request for an appointment by filling out the form below. It's always good to meet 1-on-1 to discuss your financial needs and plans. Also, feel free to put your comments below. I hope to hear from you.