Top Tips on How To Budget Your Allowance

Carmina Bayombong

Who doesn’t want to save money? As a student, you might find it difficult to start saving up money. Since your daily allowance may only be enough to cover costs on school needs, food, and transportation, saving up might seem like a daunting task.

But as the famous business magnate Warren Buffett put it, “Don’t save what is left after spending, but spend what is left after saving.”

If you’re coming from a well-off family, there may be a chance that you haven’t had the chance to truly understand the value of money– since it’s always there. But if you’re coming from the complete opposite, the scarcity of money increases its value and the importance of properly managing it.

Since there are a lot of expenses involved in college, having a clear understanding of how to properly budget your allowance is undeniably essential– especially if you’re supporting your own studies. Knowing when and where to spend your limited budget helps you develop financial independence, while also eliminating the anxiety of running out of money, helping you focus on studying and getting a degree.

So here are some great tips on how you can manage your budget more effectively:

Make a list

Note everything down to the last peso!
The first thing you should do is to write down how much allowance you get per month. After that, list down in separate columns your daily, weekly, and monthly expenses. This will serve as your budget overview. After doing so, try to segregate your necessities or basic needs from the things you can live without. Learning how to recognize the difference between the things you need and the things you want is the first step when committing to a budget.

Plan ahead

Plan way ahead, like a mastermind!

After making a list, set a budget plan before a new month begins. By knowing what you’ll be spending on a month in advance, you’ll be able to plan properly and allot the necessary costs of these commitments. However, you need to keep in mind that expenses may vary every month.

Foresight is the key to successful budgeting– be sure to check when exams or thesis season comes in, when your internship starts, or other activities that may affect your monthly spend. One of the things you also need to focus on is saving up for rainy days. You may not know exactly when it would come, but at least you’d have some money saved up to cushion the expenses.

Open a savings account

Opening a savings account can help you budget better!
Another thing you can do is to create a foolproof savings system wherein a portion of your allowance automatically goes to your savings account. This might be the most difficult thing to do if you’re already strapped for cash, but if you keep finding yourself with extra money after all your spending, this might be something that you should look into. Otherwise, you’ll find yourself in a bind when expense season comes and you’re left with nothing in the bank.

Don’t give in to peer pressure

Being able to withstand the pressure of spending will work wonders!
Surround yourself with people who can help you budget and save. This is often overlooked by those who live by the philosophy that spending money is okay as long as you’re having fun. Sadly, leading your life the YOLO-method is not the way to go if you really want to manage your allowance. While it’s not entirely wrong to spend money on fun and leisure, saving up should be your first priority to develop financial responsibility and ensure that you can live comfortably.

Develop self-control

Let’s not follow this cat’s example.

Whether it’s on milk tea, new clothes, or a night out at the movies, spending money on things that grant you relief from stress might seem essential, especially during college. But even if you find yourself looking for distractions during the pressures of finals week, always learn to develop self-control. Draw a fine line between rewarding yourself and wasting money on things that only bring temporary joy, especially because allowance money doesn’t grow on trees (as your parents may have tried to teach you).

Developing financial responsibility is a key part of becoming a successful professional. Learning when and why you spend your money early on will help you develop the necessary mindset to be able to make sound decisions when it comes to your finances.

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