I grew up in a family where money is a taboo subject and financial education is never taught. I actually learned about such important concepts as personal finance and financial freedom through self-study. My mother, who was in-charge of budgeting in our one-income household when I was little, wasn’t really a good example when it came to managing our limited financial resources.
Image Source: http://connexcu.wordpress.com/2013/09/03/connecticut-gets-an-f-in-financial-literacy/
Back then, we were living from paycheck to paycheck and we were acquiring liabilities instead of assets. While my parents certainly did their best to provide for our needs, the idea of financial freedom was non-existent to them. Or maybe they knew about it, but it was just not among their top priorities.
The husband’s family is quite the same as mine. Theirs is a two-income household (until present time) that prefers saving instead of investing. They also like acquiring stuff that lose value over time. But I have to give them credit for investing in a condo unit a few years ago that is now self-sustaining (it pays its own mortgage through its rent income).
Did you know that real estate is the primary investment of legendary business icons Robert Kiyosaki and Donald Trump? That’s what has made them millionaire and billionaire, respectively. I read it from their “Why We Want You to be Rich” book. But I digress.
Now that I’ve become more serious than ever in achieving financial freedom, I knew I have to teach financial literacy at home. My husband and our two families (his side and mine) should learn how money works and how we could create wealth using it. I thought the following are good steps to take in this direction:
1. Encourage each family member to eliminate their debts.
2. Encourage them to save money, and regularly for that matter. Let’s call this their “emergency fund.”
3. Teach them about the concepts of investing, passive income, and income streams.
4. Encourage them to get life and health insurance as soon as possible.
5. Teach them about living within, or even below, their means. (Expanding their means can follow in the future, if and when they are capable of it.)
6. Introduce them gradually to the idea of simple but smart living.
7. Share with them articles and books on personal finance.
8. Help open their eyes to all these financial realities.
9. Pray that they realize the financial mistakes they continue to do while it is not too late.
10. Assist them in whatever way if and when they start their journey to financial freedom.
I normally give my financial preach whenever I chat with them or we watch TV together. I try not to sound authoritative or judgmental. I try to give financial advice in a friendly manner. It’s still their choice if they wanna change their bad financial habits or not. I’m just here to teach and guide them. If they eventually learn basic money skills, then my efforts and good intentions won’t be put to waste.
I also have to admit that I’m still a work in progress. I still commit financial mistakes every now and then. And there’s still so much to learn in my quest for financial freedom. But as they say, learning is sharing so as much as possible, I wanna share with them what I learn from my self-study in the hope that we could all benefit from it.
Is financial education taught at your home? In what way and how do you react to it? 🙂
May you choose happiness always,
Good job, Edel! I really admire people like you who not only practises financial control, but also encourages and teaches others to do the same. I’m such a bummer in terms of this and I know it’s not something to be proud of. I’m also a work in progress, a lot of work, I must say, and your posts are really helping me a lot! Thank you! Keep on sharing! 😀
Thank you, Kriska! Happy to know you like what I wrote here. Let’s learn together to be better at handling our finances. 🙂
I can relate to this Edel. My Family was like how you describe it as well as partner’s family so thru self study and reading books, I understand it a little better. I am trying my best to apply whatever I have learned and still learning. I am hoping we could all achieve financial freedom. P.S I love reading your posts about this matter. =)
Financial education should really be taught in school. It’s about time. Yes, we can do it! Think positive lang. Thank you, Jen! 🙂
For our family, my parents were earning a little before and education is the main priority for them and the “usual suspects” i.e. rent, electricity, water, etc.
Though I have to say my mom has her share of impulsive buying habits (we would update our furniture every quarter) since this was something she never had the chance to enjoy when she was a kid.
I think being exposed to the different financial situations of people make me realise how fortunate we were that time. At an early age I was already kuripot. However times have changed for me because I end up splurging on gadgets (which is what I try to minimise na talaga!) 🙁
Hi Rachiel! Thanks for visiting back. I guess every family has its own financial story to tell. I also thought we were more fortunate than some of my relatives.
My husband splurge on gadgets, too. Haha. I still don’t know how to influence him to go easy with it. I better think of a better strategy.
For me, dapat isama eto sa curriculum, and I’m glad that there’s a cartoon TV show (Cha-Ching) that discusses this, thus exposing kids to finances. Kung minsan kasi, the kids assimilate their parents’ “bad” financial habits.
Korek, para maaga matuto ang mga bata. 🙂
Actually, ang hirap ma-influence ang pamilya ko. I tried pero hindi talaga interesado yung mga kapatid ko. Pero kapag usapang gadget, sapatos, T-shirt, at pagkain sa mall kung san masarap, all ears sila. Pero pag babanggitin ko yung pag-save, ang sasabihin short na kasi nagbayad ng utang.Then kapag may emergency, they will ask you because they know may ipon ka, wala ka magagawa kundi ilabas kasi alam mong wala sila, heheh.
I just keep on sharing financial article sa facebook para mabasa nila, kahit sinasabi ng nanay ko”ano ba yan puro about financial nakikita ko sa facebook mo”. Pray ma-enlighten sila. Hope matuloy akong mag-teacher talaga para maka-influence ako sa kabataan ngayon at I hope mai-suggest na makasama sa curriculum.
Ay naku, relate ako sayo dyan, Grace. Mahirap talaga. Need ng patience and lots of prayers. Yes, I’m sure malaki ang maitutulong mo sa mga kabataang magiging students mo in the future. Go, teacher Grace! 🙂
My parents only taught me to save and don’t borrow money. They didn’t know how to invest. I kind of understand it because during that time when they started working, panahon ni Marcos na ang gulo-gulo nang Pilipinas tapos recession daw. Hinahalo yung mais sa bigas para makatipid.
I think nung time nila, ang mahal din magkaron nang broker dahil wala pang online broker for stocks, and ang taas din nang initial investment sa mga bank investment products.
Ay korek, I heard the same stories during the Marcos regime. Mukhang mas okay talaga ang panahon ngayon when it comes to investing. Very convenient and very accessible. 🙂
This is so true. Sana I will not live with paycheck to paycheck too. Mahirap din kahit sabihin ko na I need to save especially for the future of my twins. Pero pa onti onti I am trying. It is also important na magstart sya within the family. Nasa way of living kasi yan kapag nakasanayan mu na mahirap na talaga.
Being aware of your financial situation is very important. Okay din yan na you’re trying paunti-unti, sis. Agree, mahirap talaga itama pag naging habit na. It takes discipline and determination. 🙂
I think there should be a world law about educating people on finances.It should be taught in every school and it should be started at early age.
Correct, Gladys! 🙂
Ang linya ko naman sa mga mga kapatid ko, ganito, “Papunta pa lang kayo, pabalik na ako.” I really want them to learn from my mistakes of not saving and investing when i started to earn. 🙂
Haha, pareho tayo, sis. Kaso hindi pa effective sa isa kong kapatid. Doon sa dalawa, medyo umeepek na yung mga pangaral ko about money. 🙂