3 Smart Ways to Show Your Child the Value of the Christmas Aguinaldo

Christmas really is the best time for giving and receiving gifts from our loved ones. From simple tokens to expensive gadgets, we always set aside a specific budget for their Christmas gifts, and even kids can receive cash gifts aside from toys and dresses. 

However, kids do not know how to spend their cash gifts wisely. Although they know its literal value, they do not know what they can do more with their Christmas aguinaldo. As their parents, we often keep their cash gifts and let them choose what things to buy. This may give them joy and happiness but only for the short term. Once they get used to it, they'll neglect it and start looking for new ones.

How about teaching them how to handle their Christmas Aguinaldo in preparation for managing their finances when they grow up? 

Smart Ways to Spend Christmas Aguinaldo

Many Filipinos cannot afford a house and lot in the Philippines for financial instability. They may have a stable income, but the majority of them don't have savings or investments. 

As adults, we know how difficult it is to depend on a permanent job to achieve an affordable house and lot for sale. That is why most of us do some side hustle or a business to get our own dream house while others do not spend windfall income such as their incentives, 13th-month pay and Christmas bonus. So, we experienced a lot of failures and financial struggles before we reached what we are today. 

Thus, if you don't want your kids to suffer such a tremendous situation, it would be ideal for teaching them how to handle money wisely. And, start with the Christmas aguinaldo they received this Holiday Season. 

Here are the three (3) recommended ways to teach your child about money management.

Savings Account or Investment

Most banks offer savings accounts for kids. So, if your kids don't have their own bank accounts, now is the time to get one. Bring them into the bank and give them a glance so they can be inspired once they see people and tellers counting money. Let them know they can also save huge amounts of cash if they know how to value every money they receive. Apart from cash gifts, teach them that they can also save from their daily allowances.

Another option is stock investments like Unit Investment Trust Funds (UITFs). You can buy shares through their Christmas aguinaldo and gradually teach them how it works. This may sound like a tough lesson for them, so teach them based on their age and understanding. 

Money Management Lesson

You can also give them a handful of money-management lessons. Let them know how to save and budget, determine their wants and needs, and earn through their cash gifts. You can give them a coin bank to put their money in or provide them with a budget to buy their needs and wants. But, ensure you explain to them comprehensively and patiently.

Give Back Opportunities

You can also teach your kids about how to give back to the community or the less fortunate ones. Look for charities that need donations. Let your kids choose two options to give back - cash donations or buying basic needs using their cash gifts.

Tips to Teach your Kids How to Handle their Aguinaldo

The most challenging part about teaching your children to spend their money is how you can deliver the right approach. This kind of lesson may be confusing for your younger ones. To make it easier, here are some tips you can consider.

• Explain exactly how to save.

The idea of saving their monetary gifts would not be appealing to your kids. But, giving them proper knowledge can encourage them to set aside their money. Before introducing them to opening a bank account, start with buying a coin bank. But not just an ordinary coin bank. Choose a coin bank imprinted with their favorite cartoon character.

Then, find out what they wish to buy with their savings. Let them know the price and the amount they need to save to get their wish.

• Teach children how to spend wisely.

Budgeting the money they receive is not also their cup of tea. Thus, teach them how to spend their money wisely by telling them the amount they would like to spend. But, make sure to emphasize spending only some of their money. Encourage them to set aside the remaining money for savings so they can have money to buy in the coming days.

• Motivate them to plan their future. 

All that matters to the kids is to play, eat, study, and sleep. Planning for the future is still way beyond their imagination. So, if they receive Christmas money from their grandparents, let them know they can use that money in the future. So, ask them what they want to become when they grow up and explain to them that having saved money can help them pursue their dreams.

Teaching your kids to save money at a young age can drive them to become financially responsible once they reach legal age. They can even achieve bigger investment opportunities if guided by their parents' advice. However, it is also a challenging feat to feed them money management lessons due to their limited understanding. 

Therefore, communicate with them not as parents but as friends or act their age. Think of it as a form of playtime or school assignment. Use the easiest terms so that they can understand quickly. You can also tell your own stories, such as how you managed to buy an affordable house and lot property. Remember, kids always look upon us, and we are their greatest heroes before anyone else.

To make sure this kind of family value is intact and well-preserved, Lumina Homes developed a family-oriented residential community suited for Filipino families. It is complete with amenities and close to nearby essential establishments, especially reputable banks for your kid’s savings. To know more about our properties, feel free to reach us through our message button below or book a reservation for onsite tripping. Plan an investment at Lumina Homes today and start spending a Merry Christmas with us.