What’s that one thing which, no matter how much of it you have, is still not enough? Any guesses? Pocket money! I’m sure you’re all nodding your head while reading this. Well, there is no denying the fact that pocket money is never enough and it’s also the bane of our existence! We are all found complaining about how our pocket money is so limited but we fail to realise the greater aim of pocket money is to teach us to live within a restricted budget.

The most important thing in life is to learn how to make a budget and save, and it not only makes one’s life easier but it also teaches a person to become more responsible. However, even if we understand it, the problem persists. Avoiding pocket money problems is indeed very hard but definitely not impossible, here is a step-by-step guide to overcome pocket money issues.

Figure out your needs Gone are the days when kids and teenagers used pocket money only on their ‘desires’. Today they have to take care of their ‘needs’ from that money too, thanks to inflation and everything getting so expensive that parents are having a hard time running the household expenses. This makes it important that we children should also do whatever we can so as not to burden our parents with fulfilling our expensive needs and try and use our pocket money for that.

So if you are one of those who have to get their necessities from your pocket money too, this one is for you.

List things Make a list of all those things that are not luxury or simple wants, but things that you can’t function without and you need to spend your pocket money on them. While listing them also write how much you have to spend on each item. This list may include canteen expenditure, cell phone credit, school supplies and so on.

Make a budget Once you know your absolute needs, it is time to make a proper budget. If there isn’t too much to spend on, you can make a rough budget in your mind too, but if there are too many little expenditures that escape your mind at times, then write it down in a notebook or somewhere else.

Allocate a specific amount to all the necessities you have listed and divide your entire pocket money in four parts (if you get your pocket money once a month) after deducting the amount that you want to save — if you plan on saving.

Each one-fourth part should be a week’s allowance for you and make sure you don’t overdo while spending money in order to avoid being short of money at the end of the month. This is for those who get pocket money once a month.

The saving habit It is understandable that everything is very expensive today and hence living within a budget is a problem, let alone saving. Nevertheless, you should make it a point to cut down on your expenses and save money. You never know you might just need a little extra cash the next month.

Savings are always handy when one needs money and it seems like a blessing at that time. Also, it gives you a sense of security. Those who learn how to save from an early age will never have financial issues later on in life, regardless of how much their income may be.

Don’t borrow We usually borrow money from friends and parents and then it becomes a pain to pay it back or get it deducted from the next month’s pocket money. If you have trouble paying it back, you should avoid borrowing in the first place.

Try to manage in what you get instead of borrowing. As easy as it might seem, borrowing creates trouble later on when you have to pay and you get into the habit of spending more than you can or are allowed to. Also, borrowing doesn’t really leave a very good impression about the borrower, so avoid it no matter how important it seems, unless you are very sure paying back won’t be difficult.

Cut down extra expenses Even if we think that our expenses can’t be cut down, there’s always an extent to which we can cut them down. You just need to analyse your position and find the right way to cut down some expenses that you can well do without.

For example, if you are spending too much in the school canteen and have a cold drink each day, why don’t you start having the cold drink every alternate day at first? Then slowly increase the interval and a better move would be cut back on the canteen expense all together by taking homemade lunch that is much more nutritious and cheaper. And your mom is going to be really happy that you are not having junk food but what she made! Imagine how much you would save each week! Similarly, if you are spending a little too much on CDs and DVDs, then you can consider downloading them from the internet, which is free of cost! But you need to seek your parents’ permission before you do that.

Supplement your money Pocket money is of two kinds: one that you get and one that you earn. You can always earn extra pocket money from your parents and others too! However, this will totally depend on how much hard work you are willing to put in and if you’re serious about working.

Babysitting your younger siblings and even neighbours’ is a decent way.

You can also take up household chores at your own place to earn extra pocket money from your parents. I have seen children doing stuff like typing for their parents and getting a specific amount per page. Not only will this earn you extra money which you can spend wherever you wish, but also teach you the value of money!

Follow all these steps and chances are that you will eliminate your money troubles to a great extent. And don’t underestimate the value of budgeting; you will always need it in life. Remember, no matter how much money you have, it won’t be enough unless you know how to live within your means and make budgets. Even the richest of people can’t get it all, they have things on their wish lists too (unless of course they are Steve Jobs or Bill Gates) so you shouldn’t feel bad about not being able to buy something.

Manage your pocket money well and there’s quite a chance you might just be able to get some of the realistic things from your wish list in the near future.

hat’s that one thing which, no matter how much of it you have, is still not enough? Any guesses? Pocket money! I’m sure you’re all nodding your head while reading this. Well, there is no denying the fact that pocket money is never enough and it’s also the bane of our existence! We are all found complaining about how our pocket money is so limited but we fail to realise the greater aim of pocket money is to teach us to live within a restricted budget. The most important thing in life is to learn how to make a budget and save, and it not only makes one’s life easier but it also teaches a person to become more responsible. However, even if we understand it, the problem persists. Avoiding pocket money problems is indeed very hard but definitely not impossible, here is a step-by-step guide to overcome pocket money issues. Figure out your needs Gone are the days when kids and teenagers used pocket money only on their ‘desires’. Today they have to take care of their ‘needs’ from that money too, thanks to inflation and everything getting so expensive that parents are having a hard time running the household expenses. This makes it important that we children should also do whatever we can so as not to burden our parents with fulfilling our expensive needs and try and use our pocket money for that. So if you are one of those who have to get their necessities from your pocket money too, this one is for you. List things Make a list of all those things that are not luxury or simple wants, but things that you can’t function without and you need to spend your pocket money on them. While listing them also write how much you have to spend on each item. This list may include canteen expenditure, cell phone credit, school supplies and so on. Make a budget Once you know your absolute needs, it is time to make a proper budget. If there isn’t too much to spend on, you can make a rough budget in your mind too, but if there are too many little expenditures that escape your mind at times, then write it down in a notebook or somewhere else. Allocate a specific amount to all the necessities you have listed and divide your entire pocket money in four parts (if you get your pocket money once a month) after deducting the amount that you want to save — if you plan on saving. Each one-fourth part should be a week’s allowance for you and make sure you don’t overdo while spending money in order to avoid being short of money at the end of the month. This is for those who get pocket money once a month. The saving habit It is understandable that everything is very expensive today and hence living within a budget is a problem, let alone saving. Nevertheless, you should make it a point to cut down on your expenses and save money. You never know you might just need a little extra cash the next month. Savings are always handy when one needs money and it seems like a blessing at that time. Also, it gives you a sense of security. Those who learn how to save from an early age will never have financial issues later on in life, regardless of how much their income may be. Don’t borrow We usually borrow money from friends and parents and then it becomes a pain to pay it back or get it deducted from the next month’s pocket money. If you have trouble paying it back, you should avoid borrowing in the first place. Try to manage in what you get instead of borrowing. As easy as it might seem, borrowing creates trouble later on when you have to pay and you get into the habit of spending more than you can or are allowed to. Also, borrowing doesn’t really leave a very good impression about the borrower, so avoid it no matter how important it seems, unless you are very sure paying back won’t be difficult. Cut down extra expenses Even if we think that our expenses can’t be cut down, there’s always an extent to which we can cut them down. You just need to analyse your position and find the right way to cut down some expenses that you can well do without. For example, if you are spending too much in the school canteen and have a cold drink each day, why don’t you start having the cold drink every alternate day at first? Then slowly increase the interval and a better move would be cut back on the canteen expense all together by taking homemade lunch that is much more nutritious and cheaper. And your mom is going to be really happy that you are not having junk food but what she made! Imagine how much you would save each week! Similarly, if you are spending a little too much on CDs and DVDs, then you can consider downloading them from the internet, which is free of cost! But you need to seek your parents’ permission before you do that. Supplement your money Pocket money is of two kinds: one that you get and one that you earn. You can always earn extra pocket money from your parents and others too! However, this will totally depend on how much hard work you are willing to put in and if you’re serious about working. Babysitting your younger siblings and even neighbours’ is a decent way. You can also take up household chores at your own place to earn extra pocket money from your parents. I have seen children doing stuff like typing for their parents and getting a specific amount per page. Not only will this earn you extra money which you can spend wherever you wish, but also teach you the value of money! Follow all these steps and chances are that you will eliminate your money troubles to a great extent. And don’t underestimate the value of budgeting; you will always need it in life. Remember, no matter how much money you have, it won’t be enough unless you know how to live within your means and make budgets. Even the richest of people can’t get it all, they have things on their wish lists too (unless of course they are Steve Jobs or Bill Gates) so you shouldn’t feel bad about not being able to buy something. Manage your pocket money well and there’s quite a chance you might just be able to get some of the realistic things from your wish list in the near future. i