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  • Your Baby’s First Financial Steps

    How should you invest the money your child will receive this holiday season?
    by Katrina Tan .
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    Children five to 10 years old 

    Kids this age love collecting money, especially coins, without really understanding their worth. This is the perfect time to explain what these pieces of paper and metal are actually for. Share with your child the process of earning money and then spending it to get certain things, while emphasizing the option of saving the money, as well. You may even want to accompany him as he buys a tiny treat, such as candy or stickers, to help show how the concept of money works. 


    Children 11 to 15 Years Old

     At this age, children often have more opportunities to “earn” their own money. Such opportunities include babysitting their younger siblings, helping around the house, or doing other simple tasks. Allowances, which are usually introduced at this time, may also be dependent on a child’s completion of additional chores. (Basic allowance and chores, however, should not be tied together. Chores should be a child’s responsibility, and giving monetary rewards for doing them may take away from the money lessons he’d otherwise learn.) With children of this age receiving money more frequently, make sure they save a portion of their income - say, P25 out of every P100 they get - and learn basic money management skills. 



    16 years old and above

    Older teens tend to incur larger and more frequent expenses, such as clothes, cars, gimiks with friends, etc. They will also begin paying for their expenses as they start going out on their own and becoming more aware of how much things cost. Giving them a certain amount of money, which can be placed in their own bank or ATM account, will teach them how to live on a budget and show them that money is a limited resource. Make sure to monitor their expenses every now and then, and provide them with the financial advice they need. 


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