I recently attended Smart Parenting’s Money Strategies For Smart Moms held at Cafe 1771 in Ortigas a few weeks ago. This workshop was held in partnership with Pro friends {a reputable property developer in the country} and aimed to help Filipino mums to become mindful and confident parents by providing an inspiring and informative venue for smart moms to learn about money-saving strategies and home financing, as well as tips and tricks on raising money-smart kids.
Money-Saving Strategies To Achieve Your Goal
The interesting line-up of speakers that day was led by investment advocate and Pesos and Sense TV show host, Aya Laraya, who spoke about his personal experience when in comes to money-saving strategies. Armed with more than 25 years of experience in different financial industries, Aya shared a number of invaluable insights about saving money strategies.
According to Aya, these are the 5 top reasons why we save:
- to have more money
- for retirement
- to own a house
- for children’s education
- for travel
He shared that the stock market is one of most effective ways to grow and invest our hard-earned money but a lot of Filipinos are afraid to try it as we inherently have this negative attitude towards money and getting rich. He also mentioned that Filipinos, in general, are afraid to get rich for fear of being thought to be doing illegal or bad activities. he also enthused that it is a lot easier to explore investing in the stock market or getting an insurance these days, as we can readily gain access to valuable information online. But he also warned us to seek only the advise of experts and or financial literate people whose opinions we value.
Here’s what you need to consider when planning to save up or invest:
- What do you want? ~ Be clear on the reason why you want to save up or invest your money, as this will help you determine whether you will opt for short-term or long-term investments.
- Budget ~ You need to allot a certain amount of your salary each month in order to build up your savings and investment, this is why you need to budget your money. Aya also suggested installing a budgeting app on our mobile phones to help us track our expenses and budget our money.
- Discuss with the family ~ Of course, investing and saving up is a family effort. You need to let your spouse and your children in on the plan, otherwise it might work.
- Consult with competent people ~ If you plan to invest in the stock market or mutual funds, it is best to consult with an expert who will know exactly how to help you achieve your goals.
- Action changes things ~ All your clever plans to grow your money will go to waste if you do not act on it and soon.
Tips On Raising Money-Smart Kids
As mums, I am sure that it is also one of your goals to raise money-smart children and would really love for your little ones to have high FQ {financial IQ} so you can be sure that they will be able to handle their finances well when they are of age. The second part of our workshop tackled exactly that.
Rose Fres Faustino, an investment banker turned full-time homemaker and now author and newspaper columnist, introduced us to the term FQ and dished out a number of tricks on how we can start raising our children to be money-smart no matter how young they are now. Known for her talks on financial literacy and purposeful parenting, Ms. Rose’s talk really inspired me the most that day. She even made every mum in attendance join the 48-hour pact, encouraging us to do something for our children’s finances in 48 hours. I failed to make the 48-hour deadline, but I am planning to visit a local bank very soon to open another account for my little man.
Rose shared the Basic Laws of Money that mums ought to follow to have higher FQ:
- Pay yourself ~ If you have a business of your own or a freelance online worker, it is a must that you also pay yourself once you get your income.
- Go into business you understand and seek advice only from competent people ~ Whether putting up your own business, or looking up for the best share dealing account online for future business venture, or investing in the stock market, it is a must to read and study more about what you are venturing into. It is also good practice to seek advice only from experts and qualified people to help you make sound financial decisions.
- Make your gold work for you and make an army of gold before you buy luxury ~ Make your money work for you by investing in the stock market or pooled funds. In terms of buying luxury, according to Rose, the trick is to wait until you can afford to buy 10 pieces of the luxury you are eyeing to purchase before actually getting one. This applies to designer bags, cars, and similar items of luxury.
Here are the 4 ways to help you raise smart-money kids:
- Open a bank account for your child ~ This will encourage your child to save more and be financially conscious.
- Save regularly no matter what ~The children are more likely to learn the habit of saving when they do it more often and on a regular basis.
- Invest for growth ~ It would be awesome to grow your child’s money while they are still young so they will end up having more when they grow up. Investing in pooled funds is an ideal way to go, especially for those who have limited amount of money to invest.
- Cut your child’s financial umbilical cord when they graduate ~ This may not be a popular practice here in our country, but making our children totally dependent on themselves financially once they graduated will let them learn about the value of money as well as of saving so they can survive until they finally get a regular job or source of income.
Rose also shared that we must also arm our children with economic self-defense and encourage them to engage in activities that would let them earn, especially during summers when they are off from school. Exposing them to these activities will not only let them learn about the value of money but will also allow them to earn some and save up.
To cap the days workshop, Celine Chua, brand manager of Lancaster New City, discussed insightful home financing tips. She mentioned that it is a must to prepare ourselves not only financially but also emotionally and mentally for the challenge of getting our own house. Deciding to get a house loan, after all, is no easy feat and it requires a lot of budgeting and saving up in order to pay the monthly mortgage.
Thank you for having me Smart Parenting! It surely is a morning well-spent with like-minded mums who would love to brush up on their financial literacy and gain new knowledge on how we can get our children financially ready. To know more about Smart Parenting and the line-up of their informative workshops, as well as get access to vital parenting information 24/7, visit their website, smartparenting.com.ph, and follow Smart Parenting on Facebook, facebook.com/smartparenting.ph, on Instagram, instagram.com/smartparenting, and on Twitter, twitter.com/_smartparenting.
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24 Comments
There could be some truth to what the speaker said about Filipinos afraid of getting rich. Not only that but I know a lot of people who also *do not want* to get rich, preferring a modest lifestyle, or have a mocking attitude of wealth due to a lifetime of lack. Currently I’m interested in starting investments in the stock market, and I see that you’ve mentioned that. Do you think it’s advisable to start now, given the crazy situation in the US and predictions of economic crash?
Indeed, he even asked us if we ever wonder why we do not have local superheroes like Batman and Ironman who used their wealth to help others, instead we have poor superheroes like Darna and Captain Barbel. It is always best to start investing as soon as you can. I am just not sure though given the current state of things in the US, which also have a direct effect in our economy. Best to consult with a financial adviser should you plan to invest at this time.
Indeed, he even asked us if we ever wonder why we do not have local superheroes like Batman and Ironman who used their wealth to help others, instead we have poor superheroes like Darna and Captain Barbel. It is always best to start investing as soon as you can. I am just not sure though given the current state of things in the US, which also have a direct effect in our economy. Best to consult with a financial adviser should you plan to invest at this time.
Your post makes me think more of my goals and start saving for them. Presently I am sending my son in college so I set aside all my personal plans which require money hahaha but I guess, learning smart-saving strategies will help me save better for them. More power!
Yes, the sooner we start saving up for our little ones, the better. Sending someone to College is no easy feat and it would surely keep your mind at ease if you have enough stashed for them, especially in times of needs, somewhere.
Some of these I was doing by intuition. But several other points are really eye openers. Cutting off child’s finances after they graduate is going to be little difficult but I know it is well intentioned. Waiting till you can afford 10 pieces of luxury before you actually buy one is really a great idea.
Yes, they were revelations to me as well and I am glad I was able to learn all about them that day.
These are great tips for moms and basically just for everyone. It’s really important to save and invest because we never know when we’re gonna need the money. As a young adult on her early twenties, I make sure to at least save some of my salary for insurance and for emergency fund. I also do have travel funds for when I want to travel. We should have more of these events not just for moms to enlighten more people about money and how to spend it.
Yes, Filipinos are just starting to realize the value of having high FQ, as well as of savings and investment. I sure hope Smart Parenting and other companies will hold more events like this so even those who are not parents yet can participate, too.
Hi Vix, this post is very timely. We are an advocate of letting our daughter (Grade 3) knows that a hard-earned money is ought to be spent wisely. Although our daughter is still young, we made sure that she understand how money should be spent. As much as possible, we don’t give her money for school instead prepare packed snacks for her.
Cheers for being on the right path to raising your daughter to have higher FQ, Herbert! It really is a must that we instill these values early on in our children’s lives. I, too, prepare packed snacks and lunches for my son, but since he is still very young {Grade 1} and needs to learn about money, I sometimes give him Php20 each day and instruct him to put this in his coin bank! 🙂
The first time I heard about the value of paying yourself was on Oprah. She said that the moment we get our salaries, we already know where they are going (mostly to obligations, e.g., bills), but we never really think about paying ourselves. It was such a revelation to me because like most people I never really thought of it that way. So from then on, I pay myself, the problem is, I’m not good at saving it hahaha…
This year though I am trying my best to save as much as I can. I am not getting any younger and I have to be wise about my spendings.
I love Oprah, we all learn a thing or two from her, right? I also intend to save more this year so here’s to buffing up that savings this 2017! 🙂
That’s great that you are learning more about parenting and money. It is so important. My favorite piece of advice is to cut the cord after graduation. My mom did that for me, and it really spurred me to go on my own and be successful. I have friends whose parents didn’t do that and many of them are still financially dependent even as we all are 30!
Yes, it sure is a sound financial advise and I plan to do the same for my little one. Cutting the financial cord after graduation will make children more mindful and conscious about money and how they spend it. Sadly, most people even in their adult life are not fully equipped to handle their own finances since they are not taught by their parents to do so.
I learned a lot, though im not yet a mom but this one is a helpful article, thanks tho. We literally urge to save at first but as we practiced that thought we will surely save lots of bucks for our little one’s. When I start saving now hihi by the time I reached 30 I’m sure I can send my baby tip HS <3
Yes, no time like the present to start saving up. The truth is you can easily save up for your child before he or she is born since you do not have a lot of child-related expenses to prioritize. I hope you can start saving up soon 🙂
I recently opened a savings account for my toddler and I guess I consider that a big win for our financial goal this year. I know she doesn’t understand the benefit of saving early yet but, eventually, when she gets a bit older, she will. I have an online business but I do not personally “pay myself”. I guess I have to do that from now on yeah? I hope to attend a financial literacy seminar in the future as well.
COngrats on opening a bank account for your little one! Yes, you should pay yourself, as it is a must based on what I learned from this workshop. I sure hope you can get to join one of these events in the future.
I still don’t have a child but, in the future, I would love for her to have a high financial IQ. I’d definitely also read smart parenting so I can raise her well. Whether we’re a mom or not, we really should invest to achive our goals which are what you enlisted. I currently have invested early in the form of unit investment trust fund, mutual funds, and insurance.
Wow, that’s great! You should teach me about them as I am just beginning to learn all about these different types of investments and deciding which ones to get for my little man.
An eye opener for a mom like me to focus on things worthed for the future of the family, especially saving for my child’s education, I’ve tried stock market investment but it didn’t go well., I’ll try to venture in another way though, but this really reminds me of my goals. Thanks a lot
You are most welcome. We all have financial goals for our family, may this be the year we realize or start with these goals. 🙂