Train Your Kids to be Savvy Savers

Train Your Kids to be Savvy Savers

When it comes to teaching kids about money, experts say “the earlier the better"!  Learn why and how you can start training your kid to save!

Listen to the Article
8 min read

Most of us grew up without any concept or exposure to Financial Literacy. It was rarely discussed in the classroom, and our parents did not discuss money in front of us. Yes, we’ve all had a variation of the lecture “money does not grow on trees”, but very few of us actually got concrete, practical tips on how to save and invest.   

Now, experts are saying that children should be taught about the value of money even in childhood. Financial investments guru Marvin Germo, who is a best-selling book author of the Stock Smarts series and shares his stock investing tips on even goes as far to say that when it comes to teaching kids about money, “the earlier the better.” 

The Spend vs Save culture

Germo explains that the culture of ‘spend vs. save’ is alive and well in the Filipino psyche. “Money management is not something that is taught to us well as a nation and as a culture. We are taught to spend what we have and always upgrade our lifestyle whenever we have money.” 

Buying stuff is good, he states, but it should not be at the expense of our savings. “You [should not] get into massive credit card debt just to look good in front of your friends.” 

For him, money management lessons start at home.  “Children will follow what they see. Their parents must actually walk their financial talk. There are some things that are taught, but most of the times they are caught. So if you want kids to learn the value of money, parents must exhibit good spending habits early.  Most of the great entrepreneurs and investors who came from good financially sound families all learned from how their parents acted, above and beyond what was taught to them.”

Encourage saving

Germo says the best way to drive the lesson home is to make saving fun. Teach them the value of money with these tips:

  • Incentivise saving. You can tell the child, “if you save P100 at the end of the year, I will give you P100 more; if you invest this P100 instead of buying a toy, at the end of the year I will get you a new toy.”
  • Play with money. Play board games like Millionaire’s Game or Monopoly.
  • Harness their skills. Encourage them to sell items in bazaars or online to see how much effort it takes to make money. This way, they value saving it more. 
  • Assign chores. “When I was younger, my parents would pay me to wash the car,” he recalls.  
  • Reward awards.  He shares, “Another way my parents incentivized me to earn money was to be good at school. I got money for every percent score I made – if I had 1 or two mistakes, I also got money. I got money if I made the top 10, and I got money if my rank was higher, etc. They could incentivise kids to do well at school and earn from that.”
  • Bring them to work. Instead of just disappearing to the office every day, expose them to what you do. You can also introduce them to other types of businesses with the help of your friends. 

Stash the cash

If your kids have saved enough, how do you help them grow their money?  Germo advises going for stocks and mutual funds. “The younger they are, the more risks they can actually take. So I highly advise parents to expose kids to investments that have volatility, because if they are 7 years old and they invest up until 60, imagine how big that money would be if they have more than 50 years of investing under their belt?”

He gives his expert advice here:  “If there’s one thing I know also about investing, it’s all about experience and acumen. The earlier they start investing, the better they get at it. By the time they hit their 20s they could be so skilled and gifted in the stock market they could have millions to their name by their 20s.”

Walk the talk

He reiterates that parents should be the first role models when it comes to smart saving and spending.  “They should be financially literate. If they teach savings to their kids, they also must have savings. If they are teaching stock investing to their kids, they also must be investing. It is easier for kids to learn if they see their parents do it and execute from it.” To start your own investment journey, he advises immersing in learning books, videos, and seminars. 

Financial future

Germo says that if kids know the value of money earlier on, as they grow up, they will have savings and investments, be more inclined to start their own businesses, avoid debt, and not be reliant on their relatives for financial support.

He adds, “When a whole generation of kids has [those attitudes and skills], then we will have more Filipinos producing for society instead of just waiting for dole outs from the government. They will be better off, because it is never about how much money you make, but how you know how to handle it and make it work hard for you.”


The views and opinions expressed by the writer are his/her own, and does not state or reflect those of Wyeth Nutrition and its principals.


About The Writer



Maan Pamaraan is a single mom of four boys who finds fulfilment in her decades-long career as a writer for several publications. When she is not in serious journalist mode, she enjoys sitting in front of her laptop to write light-hearted anecdotes about raising her children along with general observations about life as a working mom. A survivor of an abusive relationship, her current advocacy is also that of lending a sympathetic ear for other women who have found themselves in the same situation.  






The views and opinions expressed by the writer are his/her own, and does not state or reflect those of Wyeth Nutrition and its principals.

Recommended content

How Homeschooling Can Help to Better Nurture Gifted Children

How Homeschooling Can Help to Better Nurture Gifted Children

Remember the 3 F’s: focus, flexibility, and freedom
These 8 Traditional Filipino Games Can Help Your Children be Physically Active

These 8 Traditional Filipino Games Can Help Your Children be Physically Active

Encourage your kids to have fun exploring different classic Pinoy games
Average Rating
Average: 4 (4 votes)

Add your rating

Please login to leave us a comment.