Failproof ways to teach kids about money management

Oct 24, 2021 | Life, Only Berlin

Teaching kids about money

We always believe that parents play a crucial role in their youngsters’ life. They are the pillars of love, guidance, and support. They shape and mold their kids’ behavior and development as they know their immense accountability in their offsprings’ life. Parents remain as their children’s consistent mentors more than as a faithful ally because it has always been any parent’s wish that their children do well in life.

when to teach kids about money

One essential life lesson many parents try to teach their youngsters is proper money management. But how soon must elders teach their youngsters about money?

Some parents think money management is too big a topic for a young mind to handle. However, many financial books and even advisors say that as soon as children receive an allowance or keep money in a coin bank, it is the perfect time to teach them the basics of good spending and saving. Parents may start by making kids understand the vital difference between needs and wants. This concept will surely help kids make appropriate financial decisions in their young and adult life.

Needs vs. wants

To begin with, parents may describe needs as necessities like food, shelter, and clothing, while wants are everything else that isn’t crucial to one’s survival. Some examples of wants are a bigger television screen for entertainment or designer clothing for warmth and protection. 

Teaching youngsters about money, though, requires constant and frequent discussion. One perfect timing is when making a purchase. It helps when elders give their children an idea why they opt for a new pair of cheaper but of the same quality pants over a branded one. Such conversation will help kids learn how factors like price, product quality, and survival needs must be considered when spending money. Frequent yet straightforward discussions between needs and wants will set children up with proper financial priorities, which will be helpful later in life. 

Save money to spend

Once children already understand how to distinguish needs from wants, it’s time to go to the next level: help them save money to spend. This is how elders relate the concept of needs and desires with financial skills.

It is prudent to teach and ready kids how to fund their needs and wants. One way of doing this is by explaining to them the value of saving money. Financial consultant Fitz Villafuerte suggested one helpful way to teach kids the “three piggy banks” approach.

the three piggy banks approach

One piggy bank contains savings for needs. A second piggy bank has savings for wants. And the third one is for charity. 

Yes, giving or donating to a cause is as rewarding as saving for the needs and wants. More than supporting the causes one believes in, savings for charity also has a positive effect. It reinforces personal values, making us feel we are living true to our ethical beliefs. Teaching kids to donate likewise shows them that they can make a positive change in the world at a young age. Nurturing their innate generosity will make them grow up with a greater appreciation for what they have and what they can do for others. 

Failproof ways to teach kids about money management
Failproof ways to teach kids about money management

The concept of savings account

After grasping the three piggy banks concept, parents eventually need to move their children to an existing savings account. And since today’s children are growing up in a digital, information-dependent world, they also need to know the basics of bank savings.

BDO makes it easy for parents and kids to open a Junior Savers Account with an affordable initial deposit and maintaining balance. Parents or guardians can set up a Junior Savers Plan to help their children grow their savings. They can also automatically deposit money from their BDO Online Banking account to their kids’ Junior Savers account based on a set schedule for transfer and the amount to be transferred.

Start them young

Knowledge of financial management is an essential skill that may help us navigate life. Teaching our kids how to handle money and instilling in them the vital habit of saving at a young age is doing them a favor and saving their future. Do it not for you but for them. 


  1. Julieta Salud

    Siguro time narin to para sa mga kids ko na turuan sila mag save, ito na ata Yung sign, salamat po dito momi, sa ngayon Po ako kase Yung nag se-save para sa kanila ,pero this time tuturuan Kona Po sila.

  2. Ellaine Parame

    Salamat sa information Mommy,may kapupulutan ng lesson I agree na tayong mga parents ang mentor tayo ang gagabay sa mga bata kung paano ang tamang panghandle ng money..Balak ko.din iapply ang anak ko sa BDO Junior Savers Account.Big help ito para maging mas makilala nila ang kahalagahan ng money.

  3. Anna marie tiedra

    Very well said! Thank you so much for sharing this with us momi b.tama po na bata palang turuan na po natin sila paano mag ipon para sa future din pon nila.tayo po talaga ang unang magtuturo ng kabutihan at tama sa ating mga anak pati sa pag savings magabayan din po natin sila ng maayos.para alam din nila ang tamang lag gamit ng pera.

  4. Owen Ponce

    I do agree with you ❤️
    I do teached my kids early in their life to save ,to value money ! They should consider this as a way of preparing them on their future

  5. Antoniette Sanchez David

    Wow nice ganda naman nitong shinare mo samin mahalaga talaga na makapag ipon tayo pati ang mga anak natin upang may magamit tayo sa oras na kailangan natin

  6. Ma. Elma

    Thank you for sharing this momi super helpful ito talagang may napulot na aral.Mahalaga po talaga na matutunan natin ang pag iipon at maituro sa mga anak natin ang kahalagahan nito, malaking tulong sa oras ng pangangailangan

  7. Mitra Lyka

    Isa sa mga need natin ituro sa ating mga anak eh kung paano ang tamang pag gasta ng pera dahil madadala nila ito hanggang sa paglaki at maituturo sa kanilang magiging anak din.

  8. Dhel Manog

    Ang sarap pong basahin netong blog mo momi Berlin,ang dami pong matutunan.Mas okay po talaga na habang bata pa marunong ng mag ipon ang mga kids natin,sa ganong way po kasi naituturo natin sakanila na mahalaga ang pera,hindi puro bili lang ng bili na hindi naman dapat.Kami po ni partner ko binilhan po namin yong mga kids namin ng alkansya para kung may pera po sila din po nila nilalagay.Nakakatuwa po kasi everytime po na may magbigay sakanila e ihuhulog po nila dun.

  9. Ma. Cyril Creer

    Thank you po for sharing this blog Momi .. Marami po akong natutunan about kung paano turuan ang ating mga anak ng Money Management ..

    Dapat po talaga sa murang edad palang ng ating mga anak ay turuan natin sila sa proper money handling /Management .. Importante po kasi ito upang malaman nila ang kahalagahan nito at ng pag-iimpok ..
    Yung anak ko po actually, hindi pinapahawak ng pera pero Everytime na may nagbibigay sa kanya sinasabi niya agad na ibigay ito sa akin para itago ko .. Ginawan din po namin siya ng maliit na alkansya na kung mapuno na niya ay ioopen namin siya ng BDOJUNIORS ACCOUNT ..

  10. Karen

    Mahalaga ang may sariling ipon tayo lalo na sa future ng ating mga anak kaya thanks to bdo junior saving banks pde rin mg ipon sa pamamagitan ng piggy banks at pagbili lamang ng pangangailangan natin at hindi luho

  11. jennifer sarno cruz

    As early as possible tinuturo ko sa mga anak ko ang value ng hard earned money at ang concept ng needs vs wants. Kahit may kakayanan kang bumili laging timbangin kung kailangan mo ba talaga ito para hindi sayang ang pera.


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Motherhood, as I live it, is a gift not everyone can appreciate until she learns to truly live it. More musings and realizations, fun discoveries, and mommy tips at Momi Berlin's blog.

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