Whether you’re a grade school student or a college freshman, one of the things that you love about school is getting your allowance. Yes, that magic word that gives you a semblance of financial freedom. But while having your own money can be quite exciting, managing it is a different story. Here are some tips to help you budget your allowance effectively:
Prioritize your needs. Parents usually allot a daily amount for all your requirements, which mostly revolves around food and transportation. If you live in a dormitory, set aside money for your weekly food expenses first. Buy your needs first before you even think of spending on your wants.
Exercise discipline. If you get your allowance weekly, you will have a tidy sum on your hands. And the temptation to spend it on things you want but don’t necessarily need is very great. Don’t! If you’re not careful, you might find yourself with no allowance by the end of the week.
Save for the future. Saving is a big part of money management. True, you might only have enough money to last you the week but with a little scrimping, you might be able to save even just a little amount. Don’t underestimate the P50 you were able to save by the end of the week. In four weeks, that P50 would have become P200. In five months, that P200 would have become P1,000. Start small but think big!