Financial literacy is crucial even at a young age. Your children’s ability to manage funds as adults will be heavily shaped by the environment you’ve created at home when it comes to dealing with finances. When they see that you take charge of your family’s daily budget with less stress while still being able to enjoy quality time with them, they develop a positive relationship with money as well as good spending-and-saving habits.
However, protecting your family’s future not only requires saving up for it. It also involves helping your children understand the importance of financial literacy. Spark your kids’ curiosity about financial responsibility so they don’t shy away from it in the coming years. Start a healthy discussion by defining investment terms in a way that they can understand them with minimum effort.
The Concept: Investment. An investment is an item purchased to generate income in the long run, or which can be later sold for a higher price than when it was initially bought.
Simplify it: Make finance 101 a lesson on the value of learning—take education as an example. Help your kids realize that while doing good in school doesn’t seem to bring immediate monetary benefits, these will come once they become professionals earning a salary. How do they make this happen? They need to finish a degree. Let them discover that school sets a foundation for their financial independence, which will come in handy as soon as they build their own savings.
The Concept: Wealth. Wealth or assets are measured by the amount of money or property in one's possession.
Simplify it: Wealth can also be in the form of friendships. Children value their friendships at any age, and these friendships are nurtured by playing and spending time together. In the same way, material wealth can grow over time, allowing your children to pursue their dreams. While this can be done on their own, expert advice is a must, much like how their teachers guide them in school.
The Concept: Life Insurance. Life insurance guarantees that an insurer hands over a monetary benefit to a policyholder’s dependents in the event of his or her death.
Simplify it: Liken insurance to a sturdy roof that keeps your home safe and protects your family from danger. For your family, life insurance ensures that you have the financial means to deal with unexpected emergencies like accident or death. Your family's future is also financially protected no matter how big a storm may come in the future. Depending on your family's needs, BPI AIA offers different types of life insurance products with an investment component, such as Dollar Protect Plus. At an affordable amount, Dollar Protect Plus offers you access to global funds, while at the same time allowing you to enjoy the benefits of a life insurance plan that protects your income from unforeseen emergency expenses.
The Concept: Financial Security. This is the ability of a person to cover expenses through his or her income without worry. The end goal of financial security is peace of mind.
Simplify it: Relate it with your kids’ allowance—without it, they can’t buy lunch nor commute going home. For your family, it means having the financial means to pay bills on time and cover your health needs. It also means financially preparing for your future by investing in diverse investment vehicles such as life insurance, mutual funds, and stocks.
Educating your children about the rewards of financial responsibility not only assures your family of a stable future; it also inspires them to think of ways on how to spend, save, and invest wisely, too. BPI AIA’s suite of protection solutions lessens the probability of economic and health risks, so you and your loved ones can enjoy the rewards of a longer and more fulfilling life. Dollar Protect Plus not only offer premium benefits of life insurance, but it also makes investing in global funds accessible and affordable, too.
Lead by example today—visit any of the 900 BPI branches nationwide and talk to a Bancassurance Sales Executive.