Finances – oh – What is that?
Money / Investment – Aah – ok – that is what my parents are doing ..
I get my pocket money every month and that is all I am focusing on – rest who cares... Are we the one who thinks like this?
Well, managing pocket money is also an art and that is also related to money and investing those in the right way.
The right here can be wise use of pocket money / keeping some amount of it for better use or to be used for gifting to your friend or for the rainy day / Managing from that amount given and that is also an art.
Let’s understand how to manage our pocket money for the better use.
Let's face it, we all love money and love to spend that money. But, think for a second.
Would you rather have a little money now, or more money later?
Once you have enough, ask your parents to open a savings account for you. This will eliminate the temptation of wanting to spend that money.
If you are not old enough to get a job, work various jobs around the house, picking things up when you are not asked, or working extra hard on something that could earn some money. Start saving young. Let's say you get Rs.100 save Rs. 50, and have the other Rs. 50 for yourself. After a while, this can really add up. And if you are a young adult, start creating your own corpus by doing small jobs like, content writing / content creation / making art work for people / blogging/ interning for admin work / part time work and lot more.
Keep an organized analysis pad (which can be bought at any office store), a calculator, a paper clip, and three pens - one red, one blue, and one black. Monitor every rupee that moves in and out of your bank account and your pocket, and keep every receipt with the paper clip. This allows you to maintain an extremely accurate appraisal of your spending, updated with every purchase and available on demand.
How to manage your pocket-money Although you may feel tempted to spend all the money at once, think about when you will get it again.
You have finally started getting pocket-money! You surely couldn’t wait to get your ‘own money’ which you could spend the way you wanted. Before going shopping, think about it.
When you start getting your pocket-money, buy a purse for yourself. Keep your money in it, and not in trousers, jackets or bags. Always keep it at the same place at home, so you do not have to waste time looking for it, and when you are out of home, be careful not to lose it.
Although you may feel tempted to spend all the money at once, think about when you will get it again and if, till then, you will need money for something else.
When you see something you like, ‘sleep over’ your decision to buy it. Think if you are really going to use the item, if you can afford it, if you want it only because ‘everybody in your class has it’ will you like it next week or month...
If you want something you need to save for, spare a part of your pocket-money every month and calculate how much time you may need to have the necessary sum. That is how you will learn to plan and manage your money which will do you good in the future when you start earning your living.
Going shopping can be fun and is a good opportunity to get to better know your friends, parents, siblings, members of the greater family. Your invitation to go shopping might be met with joy.
Except that they give you a certain amount of money to freely dispose with, by giving you the pocket-money, your parents show you their confidence. They believe that you are mature enough to manage your pocket-money and independently decide whether to save or spend and what to spend it for. Try not to betray their confidence by spending your money for something that is harmful for you or something that they would never buy you.
And remember, when you do not have enough money in your pocket, you certainly feel insecure , tensed , worried and neglected. You tend to lie to your friends , get irritated with your parents or might create series of stories which might end you in mess.
This affects your mental and emotional health and in turn affects your physical health. Let’s be mindful about our finances and let us save for the rainy day.
Goodluck to all of you, my dear young adults.
Article by –
Riddhi Doshi Patel
Child Psychologist / Parenting Counselor
3x TEDx Speaker