Not just pocket change: 5 budgeting tips for your teens
There’s so much a teen learns during this phase of his or her development: Making new friends, picking up new skills and studying techniques that work for them, managing a schedule … and their weekly allowance.
While we used to rely on passbooks or even manual records in the past to keep track of where our pocket money has gone, times have changed and technology has shifted the way we pay. But it seems one thing’s the same: Learning to budget starts from managing an allowance.
These days, besides food, drink and movie tickets, teens may want to spend their money in a variety of ways - such as gifts for friends or even saving for school overseas trips.
With DBS PayLah!, students 16 and under now have their own digital payment wallet which doubles up as an automated tracker. There is no longer the need for a physical passbook or manually noting down expenses. With DBS PayLah!, you can have a chat with your teens about the way they are managing their expenses, share budgeting tips with them, and help them look for good deals - to help them meet their savings goals.
Here are five ways PayLah! can add value to your teens’ weekly allowance:
1. Kickstart conversations about money management with your teens
Tracking expenses on DBS PayLah! is as easy as 1-2-3.
You’ve given your teen his or her monthly allowance … but somehow, by the third week, they seem to have run out of money. They can’t remember what they’ve spent it on and somehow, a valuable lesson about managing expenses (or the lack thereof) has slipped through their fingers.
With DBS PayLah!, parents can help their teens monitor their digital allowance by tracking what they have spent on. Unbeknownst to your teen, small transactions can often add up. Importantly, this gives parents the opportunity to have conversations about proper money management with their children, enabling teens to exercise autonomy under some guidance.
While your teen craves independence, they can request a top up from their parents if they run out of money, or they can also choose to transfer back to a linked bank account so they can start saving. This way, you can help keep track of their allowance and discuss meaningful and smart ways to use the extra cash.
Plus, it’s super safe as you’re always aware of where the money is, and always have a record of where it’s flowing. Auto debit is also disabled for DBS PayLah! for teens 16 and under, so you do not need to worry about funds being pulled automatically from your bank account. The wallet limit is also fixed at S$999 to reduce the risk of fraud or theft.
And if your children need emergency funds, you can transfer money to them easily from wherever you are in an instant.
2. Know how your teens are spending their pocket money
An important starting point about a budget is being able to keep track of where your money is going. With DBS PayLah!, you can teach your teens to take note of their spending habits from a young age - as the app will do that for you.
That way, at the end of each week, you and your teen can spend time reviewing their expenditure. Besides recess, are they spending more on stationery, sweet treats like bubble tea, or meals outside? If they have leftover funds, would they prefer to spend it or set it aside for their end-of-year overseas trip?
There are many meaningful conversations you could have with them about money, budgeting and saving when both of you are aware about spending habits. If you notice anything out of the ordinary - for instance, a lot of expenditure on fast food - there is the possibility of finding out early and intervening before unhealthy habits form.
3. Get more out of daily expenditure
More and more merchants - from food courts to public transport operators - are using DBS PayLah! as one of their modes of payment. Every dollar is precious - why not stretch it with good deals through the Paylah! app? For instance, your teen can get up to S$3 off movie tickets at Golden Village – and even get discounted combos with popcorn and drinks – just by booking tickets via the DBS PayLah! mobile app.
4. More safety with less cash handling
The beginning of the month rolls around and there are bills to pay - such as tuition fees. Or sometimes you need your teen to run an errand which requires a larger-than-usual amount of cash. With DBS PayLah!, you will not have to worry about cash going missing as it’s safely in your teen’s digital wallet.
Going cashless contributes to a more sustainable environment as there is less of a need to print and handle money. Furthermore, a growing body of research suggests that cash is rather unhygienic.1 Paper money could be home to thousands of microbes from various environments - from the wet market to a vending machine. With less notes and less receipts, you and your family can not only reduce your exposure to these microbes, but also play an active role in reducing waste and impact on the environment.
5. Getting money back with a tap
The last, and possibly one of the most important points - getting money back - from an adhoc loan to a friend, or maybe when your teen foots for a bill first that his or her friends later spilt. Lending a hand to a friend in need is good - though a good habit is, too, to return what you owe when you can.
With DBS PayLah! there is no more confusion. Your teen can request for payment from their friends who owe them money even without seeing them. In response, all their friends have to do is to tap on the request on their app.
DBS PayLah! is a great way to introduce basic financial literacy skills to teens. As most are already familiar with the many digital tools at their disposal, it may be worth using that to your advantage - use their natural curiosity to build good financial habits such as budgeting. Even if they make mistakes and overspend, there is recourse - they can see how their budget burst, and how they can prevent it from happening. Best of all, you can connect with your teen over practical everyday skills - and perhaps you can share your stories about budgeting without the help of technology, too.
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Deposit Insurance Scheme
Singapore dollar deposits of non-bank depositors and monies and deposits denominated in Singapore dollars under the Supplementary Retirement Scheme are insured by the Singapore Deposit Insurance Corporation, for up to S$75,000 in aggregate per depositor per Scheme member by law.
Monies and deposits denominated in Singapore dollars under the CPF Investment Scheme and CPF Retirement Sum Scheme are aggregated and separately insured up to S$75,000 for each depositor per Scheme member.