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Why It's Essential to Teach Filipino Kids About Real Estate
Financial advisors always say: “It is not how much you save, but what is important is to start saving early.”
The same goes for teaching Filipino kids about real estate: 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 real estate. Although owning a house may not be the most crucial ingredient for being successful, it will help them to achieve financial independence, not to mention provide security for their future family.
Teaching children about real estate early on allows them to understand the hard work, challenges, and compromises involved in finally affording to own a home, but most importantly the responsibility that comes 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 achievable if they work hard for it. Young people today are more likely to move from one job to another in a shorter timespan, which can have implications on their financial standing. By teaching children about the need to start saving early and how the value of hard work can help you to achieve your dream of owning your own property, kids are prepared from early on and can avoid potential financial instability.
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 prices. It is then up to the buyer to negotiate the price with the seller. Many people are not comfortable with the idea of negotiating; however, if you do not negotiate, you stand to lose a lot of your hard-earned money. By teaching kids about real estate, you also teach them the importance of negotiation. This helps them to gain the confidence to walk away if a deal simply is not favorable. This will help them outside of the real estate world tool, as negotiating is part and parcel of everyday life (for example, when negotiating a salary at work).
3. They learn the importance of good credit standing
With increasingly easy access to credit cards, many young Filipinos today have found themselves struggling under the burden of credit card debts. This has prevented many from owning homes, as they are unable to get a mortgage due to dismal credit standing. 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 from early on, 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 their children the value of hard-earned money.
Preparing children by giving them the necessary tools to find the road to financial independence and home-ownership is one of the most valuable lessons any Filipino parent can give. This will be more valuable in the long run than financial support, as it will enable a new generation to manage their own finances and stand on their own feet, well prepared for the future.
This article is originally posted on Lamudi Philippines.