What kids can do with their Christmas aguinaldo 

Christmas is a time of giving – and receiving – and ninongs and ninangs are a tad more generous with their “Aguinaldos” for their godchildren during this season. As parents, we either keep it for them or encourage them to spend it on things they really like.

So, why not take this opportunity to encourage your kids to learn and understand financial responsibility?

Teach ‘em to Save

Children will likely receive a lot of material gifts on Christmas alongside monetary gifts. It would be wise to encourage your kids to set some of their money aside. The idea of saving probably won’t appeal to them, but you can try to ease them into it by making them feel like they’re in charge of the process. For instance, let them choose a coin bank—maybe one designed with their favorite cartoon character—and make them feel like they have complete responsibility for it by letting them decide how much money they want to keep, or whether they can spend a part of their savings occasionally. 

Get ‘em to Budget

It’s also wise to teach children how to budget. Let your child see how you manage your budget—it’s a good way to teach them to value money. Once they receive their Christmas money, ask them how much they want to spend on what they need and want, and how much they want to save for future use.

Encourage ‘em to plan

Children don’t really think about the future. That’s why as a parent, you should consider giving your child some financial responsibility. If your child receives a lot of money from their generous ninongs and ninangs, teach them how all this money can be used for their future. But, again, make sure you let them take part in the decision-making process: Ask them what they want to be when they grow up and tell them about the importance of having money set aside in pursuing their dreams.

Preparing for your children’s future needs is also a good way to preempt the effects of inflation, which can possibly pose a risk to their educational attainment. Educational plans serve as insurance against market fluctuations and can serve as leverage for the future. Take for example Manulife’s Education Builder, which helps guarantee funds for your children’s education should circumstances prevent you from doing so. The best thing you can ever gift your child is the tools for financial responsibility. By allowing children to make their own decisions at a young age, you’re helping them develop the necessary practical skills that will come in handy for adult life.