UnionDigital Bank (UD) has outlined practical budgeting strategies for Filipino households relying on a single source of income as families navigate rising back-to-school expenses.

The digital bank said school-related costs such as allowances, transportation, projects and daily household needs can put significant pressure on families operating on a single paycheck, underscoring the need for careful financial planning.

Drawing from discussions with members of its Ka-UD community, the bank identified four approaches that could help families manage their finances more effectively.

The first is adopting a "digital envelope system," an updated version of the traditional budgeting method in which funds are allocated to specific spending categories. CJ Ramos, a transport network vehicle service driver and content creator, said his family sets aside separate budgets for school allowances, bills and groceries at the beginning of each month.

“When it comes to budgeting, our strategy is to use the envelope system. We immediately set aside funds for the children’s allowances, bills and groceries at the start of the month so the money won’t be spent on other things,” Ramos said in Filipino. DT

The second recommendation is prioritizing essential purchases and reusing school items whenever possible. Arlene Rebudilla, a sari-sari store owner, said families can save money by reusing items that remain in good condition and planning purchases ahead of time.

“We reuse items that are still in good condition, such as bags, tumblers and school supplies. The most effective strategy is to plan ahead and spend wisely,” she said.

The bank also encouraged families to avoid unnecessary transaction fees and to build emergency funds for unexpected school-related expenses such as projects, field trips and other contributions.

Ramos said maintaining a dedicated emergency fund has helped his family manage surprise school expenses.

“We manage unexpected expenses by maintaining a small emergency fund for school-related costs so we won’t be caught off guard,” he said.

Rebudilla echoed the importance of setting aside funds for unforeseen costs.

“We set aside a small emergency fund for unexpected school expenses. We also make sure there is a budget allocated each week so we don’t run out of money too quickly,” she said.

UnionDigital said combining disciplined budgeting with digital financial tools can help single-income households better manage expenses throughout the school year.

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