Challenge: Kids on spending and saving

It is a basic principle in personal finance to know what you really need and what you just want. True enough in adults, it takes a lot of effort enable to distinguish which is which. Things that are important and what are those we can live without. Knowing the proper concept of spending comes savings. And this challenge becomes harder when you have kid(s). 

My son who is 5, like any other kid, is into toys. His current favorite is the Teenage Mutant Ninja Turtles. Ever since that movie was released a few months ago, he is head over heels into them. We would see his notebooks with drawings of 4 ninja turtles and an umpire ( sorry, I thought it was but it's Shredder). Before bedtime ( as told by Dear Hubby), he would read a toy magazine and share some stories about these green turtles. Loves to sing "Teenage Mutant Ninja Turtles(2x)...heroes in a half shell..turtle power!" He would wake me up at the middle of my sleep ( I work graveyard) just to ask " Ma, anong spelling ng leterhed (sounds like)? I thought he was asking about letterheads rather it was the crocodile-like villain named Leatherhead. Ask him who are the villains and he can enumerate them all. When I was younger, I only knew of Kraang, Shredder, Bepop and Rocksteady. Now, there are Fishface, Dogpound, Spider Bytez.... So in other words, he is a big fan and would love to collect them all. One action figure costs Php300 to thousands depending on the design. The amount is no joke for average earners like us. That is already my per day rate. I need to render OTs to complete the 4. He got his first Battle Shell TMNJ through a miracle. Yes, through a miracle. When a mall exhibited the first class relic of St. Therese of the Child Jesus, there was a petition box. You may write your prayers and someone will pray for them. And so he did, like writing Santa Claus a letter. " Dear St. Therese, I am  XXX and I love to have Teenage Mutant Ninja Turtles please. Love, XXX". So straight to the point. We visited the exhibit on a Saturday then came Monday, he got Leonardo. How? Lolo bought one for him.   

Honestly, we are having difficulty teaching our son to be frugal. We,his parents, are frugal but the grandparents are not- on him. Whenever we say NO for a toy purchase, our son would appeal to his grandparents. They can't say no to him being the only boy and only apo. I told Dear Husband that we need to teach him about money, about proper spending and saving. Hindi pinupulot lang kung saan ang pera, pinaghihirapan. Our son needs to learn how to value and handle money before he starts developing bad money habits. Is it too early? No. We want him to have good childhood money memories. Hindi namin siya pinahihirapan, mas mahihirapan siya kung kalalakihan niya ito.

All the cryings and long faces are way too much since he can't still understand that these toys are "just unnecessary wants". We come up with a plan. We explained it to him as simple as possible that he need to save to get them. We set a fund not to buy the 3 remaining ninjas but to buy icepop. He will sell them whenever he is at Nanay's store. The income from selling will help him buy TMNJ. Each pack of 8 costs Php19 (Php2.375/piece) then to be sold at Php5. By the way,the costs on transportation and electricity are not deducted. This way he'll get all the profit. When he grows older then that's the time we'll teach him the proper way of handling business. He has done this last summer where we got the fund to buy his school supplies, top-up for MF and a toy. Of course, he still needs to enjoy the fruit of his labor.  He already started selling days ago and he is so excited. Actually this morning, Nanay overlooked the fridge and there are no more stocks. I told Dear Hubby to buy another box ( 16packs of 8's). Also, it is important to pray. Let Papa God bless his icepop business. He is also told not to ask for Jollibee or McDo (trim down other spendings). Kung anong nakahaing pagkain, kainin. Glad that he can now eat ginisang ampalaya.  He put a TMNJ sticker on his alkansya and wrote "turtles power!". Like a ninja, he should focus on achieving the goal.

GOAL: Php499 each x 3 = Php 1497

SOURCE OF FUND : Selling at Php5 per piece

TIME FRAME: Oct10 to Dec31, 2014 

Like what I always say, family finance is a teamwork. Dear Hubby and I won't succeed the rat race if our son will be left behind. Even if the grannies always opposes our decisions, it's always important to stand on what we believe is best for our son. No need to argue, just trying to explain our role as the parents. Buti na lang maski un mga grannies, nakikinig rin sa amin paminsan-minsan.

As parents, be role models. Live within the family's means. Show how savings is done and trim down unnecessary spendings. Or work on a plan to have additional source of fund. Be faithful in practicing them.Pray for guidance. We all want to give the best for our children but guidance, love and support are more important than any material gift in this world.