28/03/2024
Check this money saving tips for kids
https://www.facebook.com/share/p/uhpR3JVig3bcUAxv/?mibextid=oFDknk
Money Management For Kids.
I have 4 kids, and as early as now I have already taught them how to manage their money.
The formula I used is from T. Harv Eker, the money jars. For now, hindi jars ang ginamit namin, just a simple zip lock ๐
The formula is this:
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Financial Freedom Account (10%)
Since it's for kids, for them to better understand it, I told them that this is the envelope they will use to buy or create their asset or the fund that can make them rich. Not just in the future, but now.
Kahit bata pa sila I told them they can be entrepreneurs. Use this fund to jumpstart any business. I encourage them find a solution to a problem sa school nila or anywhere. This can spark business ideas.
Or they can use this fund to start their investment like Mutual Fund. In the future, kapag nagtuloy tuloy, one thing I will suggest to them with their money is buy properties. Inoopen ko na rin sakanila ang mga ideas na to.
Recently si Gale wants to use his FFA to buy ung DIY bracelets, gagawa raw sya and bebenta nia.
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Long Term Saving for Spending (10%)
This is also a contigency fund or anything that they need to purchase na mejo pricey for them. Example, gusto ng anak ko ng ipad or camera, sabi ko dito sa fund na to sya kukuha. Nasira nia rin charger ng laptop nia, so dito rin sya kukuha to buy the new charger.
Mejo strict na ko, dati I used to buy them their things right away kaya lang since hindi nila pera pinambili, hindi sila maingat. So rule ko ngayon, if they want something or pag may nasira sila, they have to buy it using their own money. Pagipunan nila.
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Necessity (55%)
Essentials, in short baon nila. I told them this is just the percentage they can use from their baon. Hindi lahat gagastusin nila.
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Education (5%)
10% dapat to, but since bata naman sila I told them to adjust it to 5. Use this fund to enrich their minds like buying books or enrolling themselves into programs or classes for kids. My 11 year old son is interested in learning stocks, pwede nia na dito kunin ung money na un kung mag eenroll sya.
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Play (10%)
This is the fund for their happiness. ๐ This should be spent every month. I want them to practice nurturing their inner child, enjoy what they have saved up without guilt knowing that all their needs are taken cared by the other funds. Laruan, massage, shoes, anything that will make them happy dito nila kukunin.
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Give (10%)
Tithes. This is given to our church or charity. Yes, they give to the Lord.
Total of 100%.
Ang allowance nga pla nila 50/day lang, dati nga 20 pesos lang. ๐๐๐
It's not about how big or small the amount is, but we're building the discipline. Kahit sa piso kapa magstart, kaya mo palaguin basta consistent and may disiplina. I want them to be good stewards of money.
Right now, I encourage them that I will double their money at the end of the year para ganahan lalo. We do this to create a habit and a system for them. We do this every week to check their progress.
Share your money management for your kids too and let's learn together!
Btw, you can also use this technique in budgeting. I use this for my allotment ๐ Part 2 ung para sa adults using this system.