Although most Filipino kids save part of their pocket money, they do so only to buy items they want and not to prepare for "rainy days" or to grow more funds, results of a recent survey showed.
For every 10 Pinoy children, seven spend a part of the allowance given by their parents while setting aside funds to buy the latest gadgets, clothes or toys.
These were revealed recently following an August survey of 211 Filipino children in Metro Manila and Cebu by independent research firm Cimigo for the regional arm of British insurer Pru Life UK.
The study, which involved children aged seven to 12 years old, also found that Pinoy kids get an average of P157.60 in pocket money a week.
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Half of the kids surveyed said they spend half of their allowance but a
third admitted to spending majority of their pocket money, Belle
Tiongco, Pru Life UK senior vice president for marketing said.
Planning expenses and savings is meanwhile a practice for seven out of 10 children in the survey.
"Most or 88% of the children are motivated to save so they can purchase computer-related products, shoes, clothes or bags," Tiongco said.
"About two-thirds or 67 percent of them save to buy things they want while 24 percent will request their parents or grandparents to purchase the items for them," she added.
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However, despite saving up for what they
want, most Filipino children still think their parents are well-off (69
percent) and believe that family members can be nudged into buying stuff
for them (79 percent).
Although saying that Filipino kids are "generally not clueless about budgetting," Tiongco said there is "ample room to improve Filipino children's money management skills."
This, as she noted that almost three out of four Pinoy children are unaware of any kind of investment tool while 30 percent do not know what a credit card is.
About a fifth of the children surveyed also think that buying lotto tickets and playing Monopoly are investment tools.
"Maybe it's because parents sometimes say 'pag nanalo tayo sa Lotto,' so children get that wrong impression," Tiongco said.
She meanwhile highlighted the need to ramp up campaigns to educate children about handling their money.
For its part, Pru Life UK has expanded the cartoon show "Cha-Ching Money Smart Kids" in collaboration with Cartoon Network.
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show has recently launched its second season in the Philippines, aimed
introducing financial concepts such as budgeting, credit and investing
after the first part which taught them earning, saving, spending and
"We use animation and music so that learning becomes effortles," Tiongco said.
"In this age when money comes in many forms and may be used in different ways, it is important to make children understand at an early age the value of using money wisely," Tiongco said.