“Why can’t I spend all of my pocket money, Mummy?”


At a Glance

One of the most important things you can teach your child is financial wisdom and discipline in managing money and spending within his/her means. This can build a strong foundation in financial management and be a lifelong lesson for your child.

Observe how your child manages money matters. Take this opportunity to help teach him/her financial discipline and inculcate healthy spending habits.

A good way to start is by working with your child to start a personal budget with this simple activity. We also have some tips you can practise in your daily life to help turn this lesson into a habit for your little one.

Suitable for:

Your 7 – 12-year old

It will take:

about 60 minutes over the course of 1 week

Please prepare:

Printed “My personal budget” activity sheet, pencil & eraser

Self-discipline in spending

The basics of setting up a budget

The differences between needs and wants


To help your child develop better discipline and spend within his/her means, it’s a good idea to get him/her to start maintaining a weekly personal budget.

To make things easier, we’ve prepared this “My personal budget” activity sheet for you.

Download “My personal budget” activity sheet here


1. Keep to the budget/allowance allocated
Explain to your child that his/her allowance is all he/she will have to spend for the week. Remind him/her to keep his/her spending strictly within that amount. This will help him/her understand why it’s important to spend within his/her means.

2. Set a good example
Parents are their children’s role model.  Your child will take cues on how to spend based on how you do. Therefore, we hope you will diligently practice good financial wisdom and discipline daily.

When you make a decision to save (such as by taking the train instead of a cab; or buying a reliable home appliance instead of a popular branded one), explain your choice to your child. 

By discussing your financial choices, you will help your child better understand the reasons behind them; and he/she will be more likely to make right spending decisions in turn.

Related product

A Smart Buddy for smarter budgeting

A POSB Smart Buddy Watch will help your child learn about budgeting, set savings goals and develop healthy financial habits.

Learn more

NOTE: Cashless payments are convenient, especially during the current Covid-19 situation when it can help minimise contact and handling of physical cash. However, we do recommend that you carefully assess your child’s ability to handle cashless payments before getting him/her a Smart Buddy Watch.

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