They may not be buying their first home anytime soon, but teaching kids about the value ofcan help secure their future.
Financial advisors always say: “It is not how much you save, but what is important is to start saving early.”
The same goes with teaching Filipino kids about: the earlier, the better. All parents want their children to succeed in life. One way to do this is to teach them to appreciate the importance of . Although owning a house may not be the most crucial ingredient for being successful, it will sure help them achieve financial independence, not to mention provide security for their future family.
Teaching children aboutearly on also allows them to understand the hard work, challenges, and compromises involved in finally affording to own a home, but most importantly the perks that come with it. So when the time comes when your kids have to spread their proverbial wings and fly out of the family nest, they will be ready.
To guide Filipino parents, Lamudi Philippines has compiled a list of reasons why it is important to educate our kids about real estate.
1. They Learn the Value of Hard Work
Many young parents today were raised by baby boomers, who place home-ownership in high esteem; hence, many of them learned that owning a home is not as easy as it seems, but that it is very achievable if they work hard for it. Young people today casually jump from one job to another—or worse, resign from their jobs just because they feel like doing it—and this has huge implications on their financial standing. Many of them take years to finally sort out their finances to get approved for a housing loan, which could have been avoided easily if they understood the importance of job stability very early on.
2. They Learn How to Negotiate
When buying real estate, you should seek the advice of a licensed broker or even a lawyer to get good insight into fair and reasonable price. But then it will be up to the buyer to negotiate the price with the seller. Oddly, many people are not comfortable with the idea of negotiating; however, if you do not negotiate, you stand to lose a lot of our hard-earned cash. By teaching kids about real estate, you also teach them the importance of negotiating. It helps them gain confidence to walk away if a deal simply is not favorable. This will help them a great deal in life as well, as negotiating is part and parcel of our dealings every day (for example, when negotiating a salary at work).
3. They Learn the Importance of Good Credit Standing
In the advent of easy credit, many young Filipinos today have found themselves wallow to the burden of credit card debts, and how many of them were unable to get a mortgage due to dismal credit standing. This prevented many from owning homes. If children are taught the basics of real estate at an early age, they will understand how compromises have to be made in order to remain financially stable, which is the first step up the property ladder.
4. They Learn to Plan for the Future
If parents educate their kids on the importance of real estate, they are teaching them the importance of planning for the future. Although parental instinct pulls most parents to assist their children in any way possible to move up the property ladder, this only teaches them to be overly reliant. What parents can do is nurture their independence and teach them the value of hard-earned money.
Preparing kids with the necessary tools to help them find the road toward financial independence and home-ownership is one of the most valuable lessons any Filipino parent can give. This will in fact be more valuable than cash gifts or financial support, as it will enable them to manage their own finances and stand on their own feet well into the future.