Financial Literacy for OFW Families: How to Teach Kids About Saving and Investing

Why this matters for OFW families

• OFW remittances support daily needs, education, and future plans. Teaching kids how money works builds long-term security and better use of remittances.
• Starting simple and age-appropriate helps children form good habits even when a parent is abroad.

Quick checklist before you start

• Regular remittance schedule (weekly/monthly)
• Separate allocations: living, emergency, education, investment
• Basic tools: jars/piggy bank, notebook (or simple spreadsheet), access to a bank or savings product
• IDs/documents ready for opening child's account (birth certificate, parent's ID, etc.)
• Short family meeting every month

Action Plan by Age

• Ages 3–6 (Foundations)

  • Use jars or envelopes: "Spend / Save / Share."
  • Read short stories about money; play pretend store.
  • Celebrate small saving wins.

• Ages 7–12 (Skills)

  • Introduce an allowance plan: split allowance into the 3 jars.
  • Give simple goals (buy a toy, school supply). Track progress in a small notebook.
  • Open a child savings account when possible - teach bank basics (deposit, withdraw).

• Teens 13–18 (Concepts + Small investments)

  • Teach interest: use examples (bank interest, Pag-IBIG MP2 rates vs. piggy bank).
  • Explain basic investing ideas: time horizon, risk vs. reward, diversification.
  • Consider supervised entry-level investments: government bonds, time deposits, or regulated investment platforms (parents as custodians for minors).

Practical methods that work in the Philippines

1. The 3 Jars method (Spend / Save / Share)
   • Simple, visual, and works with remittance-based income.
2. Goals + Timeline
   • Link remittance portions to clear goals: school fund, emergency fund, investment pot.
3. Hands-on chores-for-pay
   • Let kids earn by doing age-appropriate chores; they learn effort-to-reward.
4. Monthly "Money Talk" (10–15 minutes)
   • Review what was saved, spent, and what the next goal is.

Where to put saved money (Philippine options)

• Piggy bank / jars - good for very small goals and habit building.
• Child savings account at a bank - safe, teaches bank interaction.
• Pag-IBIG MP2 - accessible option for short-to-medium term saving with competitive returns (check Pag-IBIG site for current rates).
• Time deposits / bank savings - conservative choice.
• Government retail bonds or mutual funds (via licensed channels) - for older teens under parental guidance. Refer to BSP and SEC resources before choosing investment products.

Remittance-smart routine for OFW families (monthly)

• Step 1: Split incoming remittance: Essentials 50–60%, Education 15–25%, Emergency 10–15%, Investment 5–10% (adjust to family needs).
• Step 2: Allocate kid's pocket money and the "save" portion right away.
• Step 3: Use a shared spreadsheet or messaging update so the family tracks the goals and balances.

Tools & apps (in the Philippine)

• Banks with youth accounts: ask local banks about opening minors' accounts.
• Digital wallet services (e.g., widely used Philippine apps) with savings or investment features - parents should enable and monitor these.
• Use BSP and SEC materials to verify safety and legitimacy of apps and investment offers.

Simple 3-step lesson plan for a month

Week 1: Explain one idea (e.g., what "saving" means). Show jars and start a goal. Week 2: Practice - give allowance/earnings and split into jars. Week 3: Check progress, celebrate milestones, adjust targets.

Safety tips for OFW families

• Use regulated banks or government programs (Pag-IBIG) and check BSP/SEC guidance.
• Beware of "get rich quick" schemes - verify any investment through SEC resources.
• Keep records of remittances and receipts. Teach kids to keep simple logs of money they receive and spend.

Conversation starters with your children

• "If you had P500, how would you split it into spend/save/share?"
• "What do you want to buy in three months? How much must you save each week?"
• "If we put money in a bank, what do you think will happen after a year?"

Final practical tips

• Be consistent: habits beat one-off lessons.
• Keep lessons short, fun, and hands-on.
• Model good behavior: children copy how parents treat money.
• Use local programs (OWWA, Pag-IBIG) and BSP/SEC resources for reliable information.

Further reading and official guidance

• Check BSP and SEC investor-education pages for kid-friendly modules and up-to-date advice on safe financial products.
• For OFW-specific support and programs, see OWWA resources and Pag-IBIG MP2 details.

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