Why parents need to raise money-smart children

ABS-CBN News

Posted at Jan 09 2018 06:09 AM | Updated as of Jan 09 2018 06:27 AM

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MANILA - Growing up with parents who instill the value of financial literacy can help children grow up to be smart when handling their finances, according to Peevee Mendoza and Nicole Tan.

Mendoza is the daughter of ex-Philam Life and ex-Ayala Land International president Rex Mendoza while Tan is the daughter of COL Financial vice president April Lee Tan.

The two shared with ANC's On the Money what they learned from their parent about handling money.

START EARLY

Financial literacy begins at home, said Mendoza, who said her parents would introduce concepts using analogies that she would understand.

"Mas nag-deepen our understanding on money on how to use it, really grow,” Mendoza said.

(It deepened our understanding on money, on how to use it, make it really grow.)

"The more you see the fruit, the more encouraged you are to invest even more," she said.

Teenager Tan said knowledge on financial matters is a privilege that not many kids have access to. 

"I’ve always appreciated as a child. It was the only environment I was in. For me I thought everybody knows this, but not everybody pala,” she said. 

"We are going to be the future, I feel that we have a duty and right to be informed about finance so that someday, we can make more informed decisions that could contribute to the betterment of our country’s financial future," she added.

LEAD BY EXAMPLE

"My Dad and Mom are very frugal in the sense that we have to live below our means," Mendoza said.

Tan said she would ask her mother to invest her money in stocks since she did not need a lot of things.

"It is important for our parents to eat at food courts. We don’t spend so much. We pick the travels that we go to. We only eat in restaurants if there’s a birthday," Mendoza said. 

SET GOALS

Saving and investing doesn't mean a person cannot spend on things that they like, they said.

"In some cases, its not a sin to spend some money. If there are two options don’t go for the cheaper one because its cheap. That’s not the only factor to look at," Tan said.

Travel and material possessions can motivate people to work harder, Mendoza said.

INVEST NOW

Mendoza said the test of financial literacy is when people start investing.

"Finance in the Philippines has gone a long way already. It’s a good time to really invest and as children it is important that even there’s financial education, if you don’t execute that’s just entertainment," she said. 

Tan said having interests in areas other than finance is not an to forego financial literacy.

"I feel that no matter what field, its important to know about finance and stock market because no matter what you become in the future, no matter who you are, you still need money, you still need to earn and grow your money," she said.