INVESTIPS: Kids, rewards, and money

For our first episode, financial planner Jenny Del Mundo tackles the tricky topic of giving kids money as a reward.

Rainybrainy asks, is it OK to give kids money for achievements? How can we reward them without being materialistic?

Rewarding achievements are very important for a child’s growth. It builds their self-esteem and teaches the value of hard work.

But you know Rainybrainy, rewarding may be done in various ways. Parents should be careful about creating a "reward culture" at home.

You see, if you start big, you could find it hard to pull back when your budget suddenly goes low, or when you notice that your children are becoming too materialistic. So balance is key.

And there are reward options that are low on cost, yet high on value. Let me give you some examples.

Why don’t you let your child invite his or her classmates for a weekend sleep over. That way, your child can have fun, while you get to meet his or her classmates.

Second, let them earn “points” so that they can reserve as much as they want, and these can go to big-ticket items, like concert shows, or special-edition toys or sneakers.

Third, pick a gift that can nurture their passion. For example, if they’re into books, get them a GC from a bookstore.

It doesn’t have to be a material reward all the time. Why don’t you let them choose their summer lessons? Let them enroll in their chosen activity – be it dance, sports, music, or graphic design.

At the end of the day, don’t forget to tell them how proud you are of their achievements. Encouraging words are the best affirmation for your child. – Rappler.com

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