“Ma, kulang allowance ko.”
For many parents, that’s a familiar refrain. What’s surprising is that it’s oftentimes said just two or three days after allowance day.
A friend once shared how her son, who was about to enter college, kept asking for extra money every week. She couldn’t understand why. After all, his allowance should have been enough.
One day, she sat down with him and reviewed his expenses. That’s when she discovered where the money was going — daily milk tea, food deliveries, online game purchases and impulse buys from online sales.
The problem wasn’t that he didn’t have enough money. The problem was that nobody had taught him how to manage it.
Many teenagers today are smart, tech-savvy, and independent. But when it comes to money, many are still learning. Before they leave home for college, parents have a valuable opportunity to teach lessons that can last a lifetime.
1. Let them manage a fixed allowance
Instead of giving money whenever they ask, provide a weekly allowance and let them budget it.
One parent shared that when her daughter started receiving a weekly allowance instead of daily cash, she became more careful with her spending because she knew there would be no refill the next day.
2. Teach the difference between needs and wants
A new pair of shoes may be exciting. So is the latest gadget or trending drink. But helping teenagers pause and ask, “Do I need this right now?” can save them from many money mistakes.
3. Encourage saving for something they want
Teenagers are more motivated when there’s a goal. Instead of buying everything for them, encourage them to save part of their allowance. Whether it’s a concert ticket, a gadget, or a special trip, the waiting process teaches discipline.
4. Allow small financial mistakes
One of the hardest things for parents is watching their children struggle. But if they spend their allowance too quickly, that lesson may be more valuable than another lecture. Small mistakes today can prevent bigger mistakes later.
5. Let them experience earning money
A teenager who earns P500 through tutoring, selling online, or helping in a family business often sees money differently. Once they experience the effort behind every peso, they become more thoughtful about spending it.
6. Lead by example
Children notice more than we think. If they see us budgeting, saving, and avoiding unnecessary purchases, they learn that financial discipline is not just something we talk about — it’s something we practice.
Final thoughts
College is more than preparing for a career. It’s preparing for real life. Before our children leave home, let’s make sure they know how to manage money, make wise choices, and live within their means.
The goal is not to raise children who will depend on us forever. The goal is to raise young adults who can confidently handle their finances wherever life takes them.
(Chinkee Tan is a Filipino wealth coach, entrepreneur and motivational speaker dedicated to helping Filipinos develop better money habits and achieve financial success. Follow him on social media for more practical tips on saving, budgeting, and growing your finances.)