Money management for kids
By Kristelle Bechayda
Given the fast-paced lifestyle and the ever evolving technology they grew up in, Millennials can be, let’s just say, distracted. Author Rose Fres Fausto shares her worries in the launch of her 4th book FQ: The Nth Intelligence that their distraction might also extend to how Millennials deal with their finances. This is why she urges parents to impart the importance of money management to their kids as early as possible.
Elephant in the room
“When it comes to teaching our children about money, we don’t seem to have a universally agreed upon age when we’re supposed to do it,” she notes. “We seem to attach way too many emotions and a lot of myths when it comes to money, and this stigma goes on into our adult lives. It is always left as the elephant in the room.”
One of the myths the author debunked is that exposing kids to money will make them materialistic; Parents fear that their innocence will be corrupted the moment money comes into the picture. Yet, Fausto counters that money is just, well, money. How a person relates to it adds a dimension of whether it is good or evil.
The same goes for another myth that says that too much money is bad for the family. Again, Fausto says, money only negatively affects family relationships when used the wrong way.
The good it does
Teaching children how to manage money at a young age goes a long way. Fausto states that making her sons save and invest when they were still young gave them a good exposure on how finances works.
“Tinuuraan ko yung mga anak ko to prepare their balance sheets as early as grade school,” she says. “When it comes to money kasi ’di ba parang abstract concept. It’s easier if there is a balance sheet. They would see their shares of their favorite stocks growing like Jollibee or Ayala. Instead of buying that gizmo, they know that they can grow their money.”
She also adds that having a high Financial Intelligence Quotient (FQ) can serve as an economic defense for children because it prepares them in whatever field they will venture.
Caught, not taught
Money may be a sensitive topic, but discussing it with the children is inevitable for parents. Fausto stresses that this can’t be delegated to anyone else since it is rooted in the family’s value system. When imparting the importance of managing finances to kids, the author explains setting a good example is always the key.
“Gagawin nila kung anong nakikita nilang ginagawa, hindi kung ano yung sinasabi,” she stresses.
FQ: The Nth Intelligence is available in major bookstores for only P385.