Start 'em young to be money smart

“Start ‘em young to be money smart”

June 16, 2018, Sun.Star Davao

Gerald Dimailig is a diligent seafarer who comes home after four to six months from working abroad. Unlike his other peers who give expensive shoes and gadgets to their kids, he does not bring home 'pasalubong', save for a few chocolates. And, each time, his two boys, Patrick (17) and Jed Benedict (12), are happily content with these simple treats.

“My husband earns quite decently but we agreed early on that we should never spoil our kids with material things by substituting his presence with presents. We wanted to let the boys understand that their dad’s safe arrival is what matters most. Thankfully, our sons have gotten used to it, and this is probably the reason why they have a very good father and son relationship”, shares Doris Parel Dimailig, a full-time mom and businesswoman.

PRESENCE, NOT PRESENTS. Gerald and Doris Dimailig have agreed early on that they will never spoil their kids, Patrick (17) and Jed Benedict (12), with material things even if Gerald earns quite decently as a seafarer. Leaving the corporate world gave Doris the time to impart solid family values to her teenage boys.  It has likewise allowed her to mentor them on how to become money smart which is, sadly, the one thing that is hardly taught in school.

“I am just like any parent who wants to ensure that my boys become responsible in handling their money.   This thinking might be too advanced but they will become family bread winners someday and I want them to lead their families to prosperity anchored on right and solid foundation”, says the doting mom.

Doris clearly knows what she is talking about. A Land Bank employee for twenty years with parents who were government workers, she relates that growing up, she always felt abundant and provided even if she had ‘ordinary folks’ with humble means.

“Money never became a measure of our success with my mom emphasizing the importance of financial independence and the need to prepare for old age so I don’t become a burden to my children later on”, she discloses.

Money jar

Nowadays, Doris is active in spreading financial literacy and conducts one-on-one and group coaching on various topics such as saving, budgeting, getting out of debt, and investing in the Philippine stock market. She has also given personal finance talks to DepEd, Philippine Statistics Authority, Local Government of Sulop, and Cor Jesu College.

Leaving the corporate world gave her the time to impart solid family values to her teenage boys.  It has likewise allowed her to mentor them on how to become money smart which is, sadly, the one thing that is hardly taught in school.

One of the ways she mentors her boys in financial stewardship is their family’s money jar. “Using the money jar system is my own way of helping Patrick and Jed allocate their school allowance, similar to the concept of budgeting”, she explains.

“Each of them has three clear jars labeled as Save/Invest, Charity, and Tithes. The percentage of the allocation is 10% for tithes, 5% for charity, and 25% for saving/investing. The 60% is left for spending. They can only spend what is left, not save what is left. The money in the jars are harvested at the end of the month”, she emphasizes.

The money from the tithes jar is given to the church.  It is Doris’ way of teaching her boys that they need to return at least 10% of God’s provision to the church or any religious organization that nourishes our faith.  It is also a way of thanking God for the blessings of abundance.  Meanwhile, the money from the charity jar is given to anyone who is in need because one of the main purposes of wealth is to bless others.

And, lastly, the money from the save/invest jar is placed in a bank to be transferred to their stock market account every month.  “Since their savings are small, I sometimes put a minimal add on to it”, Doris divulges.

Good stewards

This early, Doris has seen significant changes with her sons as they became more financially aware.      

The eldest Patrick who used to be the “bilmoko” (‘buy me this’) type during his younger days has become more conscious and “kuripot” (tightwad) in managing his money, while the younger Jed is developing an entrepreneurial mindset by selling things in school. They have since learned to distinguish “wants” from “needs”.

The two siblings have also invested in pure stocks and mutual funds a few years back. Doris made sure that their 2015 new year’s resolution is to have the boys have their own individual investment account at ages 13 and 9. She used their Christmas gifts from grandparents and godparents as the initial fund for starting their investments.  After explaining to them how the stock market worked, she made them choose what stocks to buy to invest their money in. One of their stocks is Jollibee, which, coincidentally, is also the most popular choice among investing kids and teens.

The Dimailig boys’ inspiring money saving habits have not gone unnoticed. Last 2016, Jed received the Outstanding Kiddie Saver Award from the Bangko Sentral ng Pilipinas, a nationwide search for young Filipinos who have developed the good habit of saving money at an early age.

“Parents must remember that our children’s financial education begins with them.   If they do not take effort in teaching their kids how to handle money while they are young, no amount of income saved can be enough against financial disasters in the future; a sure ticket to troubled relationships and stressful lives”, Doris warns. 

The conscientious mom advises that parents should consider the need to start the kids’ own savings accounts early on.  “Teach them to invest money in a business or paper assets.  If their forte is entrepreneurship, allow them to become young businessmen and experience selling simple products to relatives, friends, neighbors, or classmates”, she adds. 

“Just don’t forget to ingrain in the children’s hearts the true purpose of money. We know that it is not the only thing that matters but, nevertheless, a very important tool to catch their dreams, buy their needs, and occasionally, their wants.  Money is an important requirement for reaching out and helping others, for charity and for glorifying God through tithing”, Doris reminds fellow parents.

E-mail the author at mom.about.town.dvo@gmail.com. Visit http://momabouttowndavao.blogspot.com/.

How can we teach our kids to learn the value of money? Here are Doris Dimailig’s five best tips:   

1.  PAY YOURSELF FIRST.   Whenever they receive their school allowance, kids should set aside 10% or more depending on how much they can afford. This will develop in them the habit of saving and introduce the formula of income – savings = expenses.

2.  TEACH THEM HOW TO BUDGET. Knowing how to budget is one important life skill that teaches children control over their money and how they spend it.  This is the reason why Doris believes in giving kids their school allowance and teaching them how to manage it.

3.  INTRODUCE THE CONCEPT OF EARNING MONEY. Explain to the kids that parents need to work hard so they can earn money in the form of salary or income. After working, it is the only time that we receive money.

4.  DIFFERENTIATE BETWEEN WANTS AND NEEDS. This will give kids the idea on how to prioritize, more so when funds are limited. Discuss that needs are things we cannot live without like food, shelter, and clothing, and wants are things that we can live without like toys and gadgets.

5.  VALUE DELAYED GRATIFICATION. Kids need to be taught that not everything they want should be given to them every time upon their request. They either have to earn it or spend their savings on it but only after seriously considering spending precious money at the best time possible.