4 Ideas to Instill the Habit of Saving Money in Your Family

Numbers don’t lie—according to a survey released by Bangko Central ng Pilipinas back in 2014, only 1 in 4 households in the Philippines has savings. Due to this and a lot of other factors, Filipinos were recently named by Bloomberg as the worst savers in Southeast Asia.

This is a worrying problem as having little to no savings opens a lot of Filipinos to burdensome yet preventable risks. Often, people without savings are thrown into debt in the event of an emergency such as unanticipated household repairs, unforeseen car expenses, or worse, costly and unexpected medical bills.

Fortunately, despite it all, there still seems to be a silver lining. As stated in the same Bloomberg study, children in the country are beginning to learn the value of money and are starting to save big. However, this doesn’t guarantee anything—as parents, it is still crucial for you to instill the importance of saving in the family early on so that future generations can learn how to provide for themselves and live healthier, longer, and better lives. 

1. Give your children an allowance (or better yet, let them earn it by doing chores).
   
   Rather than giving your kids an open line of credit, you can try to start providing them with a set budget. Depending on what you think would suit them best, you can give their allowance per day, week, or month. This way, you don’t have to put your foot down and say no whenever they ask for money as your kids will be aware of their limits, grasping the importance of saving at an early age.
   
   Also, it would be a good idea to give them opportunities where they can earn their own money by doing simple household chores. You can agree to “pay” them a certain amount per chore—say, Php60 for taking out the trash, Php 150 for washing the dishes, and Php 200 for tidying up their room. Through earning, they can learn the real value of money and it’s purchasing power.
   
   
2. Use clear jars to visualize money for spending and saving.
   
   In the Philippines, it is not uncommon for kids to receive money, also known as ang pao, instead of material things as a present for occasions like Christmas or birthdays. Often, they’ll want to spend all their money right away on things they want such as toys, shoes, clothes, and even gadgets. Take this as an opportunity to teach them to separate their money into different piggy banks.
   
   Depending on your kids’ preference, you can try buying 2 to 3 piggy banks and labeling them—"spend”, “save”, and “give”. You can also experiment on buying clear jars Instead of having store-bought piggy banks to help give your kids a visual of their growing savings. Seeing their money pile up on a clear jar can also be a source of motivation for them to work on filling them up and saving more.
   
   
3. Teach them the importance of healthcare.
   
   As parents, you’ve laid down the foundation when it comes to knowing the best ways to take care of your kids’ health. This includes feeding them nutritious meals, encouraging them to exercise, and tucking them in early to ensure they get enough sleep. Other than these, you also make sure your kids visit and get regular checkups with their doctors to prevent health problems from occurring.
   
   On your way to or from the clinic, you can casually start introducing to them the value of taking care of their health and how it relates to saving money. In painting a clear picture, you can discuss that leading a healthy lifestyle could help them avoid costly medical bills in the future—for example, not being physically active can increase their risk of heart disease, stiff joints, and reduced immune defenses.
   
   However, because not all chronic illnesses are preventable, it is essential to start saving for such emergencies—or better yet, get a Critical Care 100 life insurance plan for your family. By having perks like lifetime health protection from up to 100 critical illnesses, you are sure to protect and take care of your family without having to worry about unexpected and costly medical expenses.
   
   
4. Set a good example
   
   According to a study published by Dr. Whitebread and Dr. Bingham of the University of Cambridge, money habits are already formed by the time your children reach 7 years old. If you want your kids to be better at saving and achieve financial security in the future, the best way is to start practicing what you preach.

You can start by opening a savings account, funneling money into your emergency funds, staying on top of your credit, and investing in health insurance. As the real key to teaching your kids about money is to set a good example as parents, you can talk to a Bancassurance Sales Executive at any of our 900 BPI branches to know the best ways to improve your family’s financial literacy and get the best health insurance in the Philippines.