Overseas Filipino Workers (OFWs) work hard to provide for their families back home. Teaching kids about money–how it’s earned, how it’s saved, and the importance of giving back—is super important. It helps them understand the sacrifices their parents make and prepares them for a financially smart future.
Why It’s Extra Important for OFW Families
Having a parent work far away can be tough. Kids might not fully understand how money makes its way to their table. Often, they only see the result, not the hard work and sacrifices behind it. Talking about finances makes the connection real. It shows them that money doesn’t just appear; it’s earned with a lot of effort. Also, it is a common belief that OFWs have a lot money, but this is not always true as a high percentage of OFW families fall back into debt.
Moreover, when kids understand the value of money, they are more likely to appreciate the things they have. This gratitude can lead to stronger family bonds, especially when a parent is absent for long periods. Knowing that their parent is working hard for them can inspire them to study harder, be more responsible, and value the sacrifices being made. Let’s explore how to teach these valuable lessons.
Age-Appropriate Lessons on Earning
The way you teach kids about earning money has to change as they grow older. Little ones don’t understand the concept of complicated jobs but they are very adept in learning new things.
Preschool (Ages 3-5): Helping Around the House
At this age, focus on simple tasks and associating them with rewards (not necessarily money rewards). Think of it as introducing responsibility and cooperation. For example, if your child helps put away toys, praise them and explain that helping keeps the house tidy for everyone.
Actionable Tip: Create a “Helpful Hands” chart. When your child completes a task (like putting away shoes or helping set the table), give them a sticker. At the end of the week, they can trade the stickers for a small treat or a special activity like reading a book together. Explain to them that the stickers represent the importance of helping, just like how Mama/Papa helps the family by working hard.
Elementary School (Ages 6-12): Allowance and Simple Chores
Introduce the concept of a small allowance for completing regular chores. This is a great way to teach them that work equals money. These chores should be things that go above and beyond normal expectations. Making their bed may be expected so this wouldn’t be include; something like a more exhaustive cleaning and caretaking. Remember, this is about teaching financial responsibility, not shirking parental duties. According to research, children who receive an allowance are more likely to understand the value of work and saving.
Example Scenario: Offer an allowance of ₱50 per week for chores like watering the plants, sweeping the porch, or helping with meal preparation. Explain that the allowance is for their effort, and they can choose to save it, spend it, or donate a portion.
Middle School (Ages 13-15): More Responsibility, Bigger Rewards
As children mature, give them more substantial responsibilities. This is the age to explore the possibility of more intensive chores. Think about what ways they can do more and earn more. The key is that these will also make their life simpler.
Earning Opportunities:
Consider increasing allowances in exchange for increased responsibilities.
High School (Ages 16-18): Part-Time Jobs and Real-World Skills
Encourage them to seek part-time jobs during school breaks or weekends. This gives them real-world experience and a taste of financial independence. This could work well as a summer activity that teaches hard work.
Practical Advice: Help them create a resume and practice interview skills. Discuss the importance of punctuality, professionalism, and teamwork. Remind them that their reputation matters.
The Magic of Saving: Making It Fun and Understandable
Saving is a crucial life skill. But for kids, the idea of waiting for something can be a challenge. Here’s how to make saving fun and understandable:
Piggy Bank Power
Start with the basics: a piggy bank. Let them physically see their savings grow. Seeing the amount increase can be highly satisfying. Let them know there’s a way to get the things they want if they save enough. When they put money in, praise them for their hard work and dedication.
Goal Setting
Help them set specific saving goals. What do they want to buy? A toy, a video game, a new gadget? Writing down the goal and tracking their progress makes saving more tangible. If they are good at drawing, you can have them illustrate their goals to help them visualize them.
Example: “I want to save ₱500 for a new toy car.” Create a chart where they can track their progress each week. Celebrate milestones along the way.
Matching Program (OFW Style)
Consider a “matching program” similar to employer-sponsored retirement plans. For every peso they save, you can match it with a certain percentage. This incentivizes saving and teaches them about investments (in a simplified way). Do note that it will come out of your expenses so only allot what you can properly give.
Example: “For every ₱100 you save, I’ll add ₱20. This will help you reach your goal faster!”
Open a Savings Account
Once they have a decent amount saved, open a savings account at a bank. This introduces them to the world of formal banking and teaches them about interest. Talk about the interest being the money the bank gives back for safekeeping of the funds. This can be an excellent way to show that there are ways you can earn even at rest. Be sure to follow through.
Reality Check: Explain the importance of keeping their account information safe and not sharing their passwords with anyone.
Giving Back: Cultivating Empathy and Gratitude
Teaching kids to give back is just as important as teaching them to earn and save. It helps them develop empathy, gratitude, and a sense of responsibility towards their community. Studies illustrate the importance of giving back, it helps teach gratitude and can lead to a happier life.
The Three Jars Method
Introduce the “Three Jars” method: one for spending, one for saving, and one for giving. Encourage them to allocate a portion of their allowance or earnings to each jar.
Breakdown:
- Spending Jar: For everyday expenses and small treats.
- Saving Jar: For long-term goals and future investments.
- Giving Jar: For donations to charity, helping those in need, or buying gifts for others.
Volunteer Opportunities
Get them involved in volunteer activities. This could be anything from helping at a local orphanage to participating in a community cleanup drive. Seeing the impact of their actions firsthand can be incredibly rewarding.
Age-Appropriate Options: Younger children can help pack donation boxes or create cards for sick children. Older children can volunteer at soup kitchens or tutor younger students.
Family Giving Traditions
Establish family giving traditions, especially during holidays. Instead of just receiving gifts, encourage them to think about what they can give to others. This could be donating old clothes, toys, or books to a charity, or preparing a special meal for a less fortunate family. It can be an annual tradition to bake cookies for the neighbors.
Specific Challenges for OFW Families and How to Overcome Them
OFW families face unique challenges when it comes to teaching financial literacy. The distance between parent and child can make communication and consistent teaching more difficult. Here are some specific challenges and solutions:
Challenge: Maintaining Consistent Communication
Solution: Schedule regular video calls dedicated to discussing finances. Use online tools and apps to track savings goals and progress. Stay involve with their school life, like their financial literacy classes, if any.
Challenge: Dealing with Guilt Spending
Solution: Openly discuss the sacrifices you’re making as an OFW. Explain that your goal is to provide a better future for the family, but that doesn’t mean you can afford to buy everything they want.
Challenge: Preventing Entitlement
Solution: Emphasize the value of hard work and earning money. Avoid giving them everything they ask for without them having to put in any effort. Remind them that not all families are as well off as they are.
Challenge: Managing Remittances Wisely
Solution: Involve older children in discussions about budgeting and managing remittances. Show them how you prioritize expenses and make financial decisions. Talk to them about costs of living that you encounter while abroad. According to the Bangko Sentral ng Pilipinas, financial literacy programs for OFWs and their families can significantly improve remittance management.
Practical Tips for Incorporating Financial Education Into Daily Life
Financial education shouldn’t be a one-time lecture. It should be woven into everyday conversations and activities. Here are some practical tips:
Grocery Shopping Lessons
Take your kids grocery shopping and involve them in the process. Let them compare prices, choose the best deals, and stick to a budget. Show them off-brand products and challenge them to find the best bargain.
Meal Planning
Involve them in meal planning. Let them help choose recipes, create a shopping list, and calculate the cost of ingredients. This teaches them about budgeting and the value of food.
Travel Planning
If you’re planning a family vacation, involve them in the planning process. Let them research destinations, compare prices of flights and hotels, and create a budget for activities. This teaches them about travel planning and financial responsibility.
Real-Life Scenarios
Use real-life scenarios to teach financial concepts. For example, if you’re buying a new appliance, explain the difference between cash payments and installment plans. Discuss the pros and cons of each option.
Leveraging Technology for Financial Education
There are many online resources and apps that can help you teach your kids about money. Here are some options:
Budgeting Apps
Use budgeting apps to track your family’s expenses and set financial goals. Involve your kids in the process so they can see where the money is going.
Educational Games
Play educational games that teach financial concepts like saving, investing, and budgeting. Many free online games are available.
Online Courses and Workshops
Enroll your kids in online courses or workshops on financial literacy. These courses can provide a structured learning experience and teach them valuable skills. The Philippine government periodically offers programs for OFWs that might discuss family finances.
Dealing with Peer Pressure and Materialism
Kids are often influenced by their peers and the media, which can lead to materialism and unrealistic expectations. Here’s how to address this:
Open Communication
Create a safe space where your kids can openly discuss their feelings and concerns about money. Listen to their questions and address their anxieties. This helps them feel more secure with the sacrifices of OFWs.
Media Literacy
Teach them to be critical of advertising and marketing messages. Explain that commercials are designed to make them want things they don’t need. Studies suggest that children are heavily influenced by digital marketing.
Focus on Experiences
Encourage them to value experiences over material possessions. Plan family outings, trips, and activities that create lasting memories. Show them that happiness doesn’t come from buying things.
The Role of Schools in Financial Education
Schools play a crucial role in preparing students for financial independence. Advocate for financial literacy programs in your child’s school.
Parent-Teacher Collaboration
Work with teachers to reinforce financial concepts taught in the classroom. Discuss ways to incorporate financial education into other subjects, like math and social studies.
Guest Speakers and Workshops
Invite guest speakers to talk to students about money management. Organize workshops on topics like budgeting, saving, and investing.
Long-Term Financial Planning for OFW Families
As an OFW, it’s important to have a long-term financial plan that protects your family’s future. This includes:
Investing for the Future
Invest in diversified assets that can provide long-term growth. Consider investing in stocks, bonds, mutual funds, or real estate. Consult with a financial advisor for guidance.
Retirement Planning
Start planning for retirement early. Contribute to a retirement savings account regularly. Understand the benefits and risks of different retirement plans. The Social Security System (SSS) offers programs for OFWs for retirement and investment.
Insurance Coverage
Ensure that you and your family have adequate insurance coverage. This includes life insurance, health insurance, and property insurance. Protect yourself from unexpected financial losses.
FAQ Section
Q: How early should I start teaching my child about money?
A: It’s never too early to start! Even preschoolers can learn basic concepts like saving and sharing. Use simple language and age-appropriate activities to introduce these ideas.
Q: How can I make saving fun for my child?
A: Make saving a game! Use a piggy bank, set saving goals, and offer incentives for reaching milestones. Let them track their progress and celebrate their achievements.
Q: What if my child asks for something I can’t afford?
A: Be honest and explain why you can’t afford it at the moment. Use it as an opportunity to discuss budgeting and prioritizing expenses. Suggest alternatives, like saving up for the item or finding a less expensive option.
Q: How can I prevent my child from becoming materialistic?
A: Focus on experiences over material possessions. Encourage them to value relationships, creativity, and personal growth. Teach them to be grateful for what they have and to give back to others.
Q: What are some good resources for learning more about financial literacy?
A: There are many online resources, books, and workshops available. Search for reputable sources that provide unbiased information and practical advice.
References
Bangko Sentral ng Pilipinas. Financial Literacy Programs Improve Remittance Management.
Social Security System (SSS). Programs for OFWs Retirement and Investment.
Several studies on the emotional benefits of volunteering and acts of kindness.
Take Action Today!
The financial future of your children is in your hands. Start today! Have an open conversation with your kids about money. Implement some of the strategies discussed above. The sacrifices you make as an OFW deserve to be understood and appreciated. Help your children become financially responsible, generous, and grateful individuals. It will not only make them successful in life; it will also strengthen your family bonds and create a brighter future for all of you. Begin with something simple to show them the way.
