Money habits often start earlier than we realise.
Long before young Singaporeans receive their first full-time salary, open multiple bank accounts, or think seriously about investing, many are already learning how to manage money through something much simpler: allowance.
In the first episode of DollarsAndSense’s Growing Up series, hosts Feng Yi Ong and Duncan Lai sat down with guests Deanna Lim and Troy Cheng to talk about allowance, part-time work, saving, spending, and the small money decisions that shape us while growing up.
The conversation was not about perfect budgeting rules or polished financial advice. Instead, it explored something more relatable: how young people actually learn to manage money when their income is limited, their wants are growing, and no one really knows what the “right” amount to save is.
Watch the full DollarsAndSense Growing Up episode on YouTube here:
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Allowance Is Usually Our First Budget
For many young people, allowance is the first time money becomes something they have to manage on their own.
Duncan shared that in primary school, he received daily allowance. If he wanted to buy a sweet drink after school, he had to make a small trade-off: spend less on food, pick a cheaper meal, or skip the drink altogether.
It may sound minor now, but that is budgeting in its simplest form.
As he grew older, his allowance changed from a daily amount to a monthly one. That also changed the way he had to think about spending. Instead of simply making his money last until the end of the school day, he had to pace himself across several weeks.
Troy had a similar experience. His parents gave him allowance monthly from a young age. The money would be placed on the table at the start of the month, and he had to acknowledge that he had received it. Once it was spent, there was no immediate top-up waiting for him the next week.
That kind of structure may feel strict, but it teaches an important lesson early: money has to last.
Whether allowance is given daily, weekly or monthly, the habit being built is the same. Young people learn to make choices, prioritise needs, delay wants, and understand that spending everything too quickly has consequences.
Saving Your Allowance Can Feel Slow, But That Is The Point
When we talk about saving as adults, the conversation often revolves around large numbers: emergency funds, BTO downpayments, retirement goals or investment portfolios.
For students, the numbers are usually much smaller. But that does not make the habit less important.
Troy shared that when he was younger, seeing the first digit of his bank balance increase felt meaningful. Moving from a few hundred dollars towards the next milestone gave him a sense of progress and security.
Of course, savings did not always move in a straight line. Outings, holidays, books, hobbies and skincare products could all eat into the amount saved. But the key habit was not about never spending. It was about having a reason to keep saving again after spending.
This is an important distinction for young people.
Saving allowance is unlikely to make someone rich immediately. But it helps build familiarity with money staying in the account instead of being spent the moment it arrives. That sense of control matters later when allowance becomes salary, and small purchases become bigger financial commitments.
Earning Your Own Money Changes The Way You Spend
Several guests reflected on how part-time work changed their relationship with money.
Feng Yi shared that she started helping out at a school bookshop during Primary 5 school holidays. While it was not a formal job in the adult sense, it introduced her to a basic but powerful idea: money is tied to effort and time.
Deanna’s experience was more intense. While studying, she gave tuition to support her own expenses. At one point, she earned about $300 from tutoring two students, but $240 went towards her violin lessons. After that, there was not much left to save.
Later, she also paid for her own education after polytechnic, working full-time while pursuing part-time university studies and managing loan repayments.
That meant missing out on experiences some peers could afford, such as graduation trips or more carefree spending. But it also built a form of financial discipline that did not come from a textbook. It came from necessity.
One of the most striking reflections from Deanna was what happened after her loans were finally cleared. She initially wanted to loosen the belt and spend more freely. But because she had already learned to survive on less, she continued saving a large part of her income instead.
That is the quiet power of habit. Once you are used to living below your means, saving no longer feels like a temporary sacrifice. It becomes part of how you manage money.
There Is No One Correct Way To Organise Your Money
The episode also showed that different families teach money habits in very different ways.
Some families use fixed allowance. Others are more flexible.
Feng Yi shared that her family did not have a fixed allowance system. Instead, there was a communal coin box at home, and family members could take what they needed before leaving for school. That system depended heavily on trust and self-control.
Troy’s family took a more structured approach. Allowance was given monthly, and during school holidays, his family encouraged him to work instead of relying on allowance.
The discussion also touched on whether young people should keep all their money in one account or separate their funds.
Troy preferred using one account when he was younger because he did not have a large amount of money and wanted to track inflows and outflows easily. Deanna, on the other hand, saw value in separating money meant for savings from money used for daily spending, especially when bigger commitments such as loans were involved.
Duncan also shared that he separated some of his red packet money as “fun money”, which made spending it feel less guilty because it had already been set aside for that purpose.
There is no universal answer. For some youths, one account may be simpler. For others, separating savings, spending and fun money can make it easier to avoid touching funds that should be kept aside.
What matters is whether the system helps you stay aware of where your money is going.
Tracking Spending Is Boring, But It Works
One of the most practical takeaways from the episode was also one of the least glamorous: track your spending.
Duncan compared money tracking to food tracking. When people become aware of what they consume, they naturally start noticing patterns. The same idea applies to spending.
Many young people may not feel like they are overspending because each transaction feels small. A drink here, an online purchase there, a monthly subscription in the background. But these expenses can add up quietly.
This is especially relevant today because spending is no longer limited to cash in your wallet. Digital payments, online shopping and recurring subscriptions can make money leave your account with very little friction.
Deanna pointed out that overspending often happens because we are not fully aware of what we are paying for. A forgotten subscription or unused app may not feel like a big deal on its own, but it still chips away at savings over time.
For youths just starting out, awareness may be more important than having a perfect budget. Once you know where your money is going, it becomes easier to decide what to keep, what to cut, and what matters enough to spend on.
Debit Cards Can Be A Safer Way To Learn Financial Responsibility
The episode also explored how financial tools have changed over time.
For older guests, growing up with cash made spending feel more tangible. You could see the money leaving your wallet. Today, many purchases happen through cards, apps and online platforms.
That convenience can make spending easier. But it can also give young people a safer environment to practise money management, especially when using a debit card.
Unlike a credit card, a debit card generally limits spending to money already available in the account. This makes it a useful first step for youths who are learning how to handle digital payments without immediately entering the world of borrowed money.
Deanna recalled advice she received when she first got a card: “With more power comes more responsibility.”
That line sums up the role of financial tools well. A savings account, debit card or banking app will not automatically make someone good with money. But when used properly, these tools can help youths track spending, manage day-to-day purchases, and build confidence in handling their own finances.
This is also where products such as the OCBC FRANK Account and OCBC FRANK Debit Card become relevant for young people. Designed for those aged 16 and above, the account and debit card are positioned around both saving and spending habits, with rewards that depend on how users manage their money.
For youths, the bigger lesson is not the reward itself. It is learning to connect spending decisions with the money available in the account, and to recognise that every transaction is still a choice.
Saving And Spending Are Both Part Of Growing Up
A common question young people face is whether they should save as much allowance as possible or allow themselves to enjoy life while they are young.
The answer is not as simple as “save everything” or “spend freely”.
Part of growing up is learning how to balance both.
Saving helps build security and confidence. Spending, when done intentionally, allows young people to enjoy friendships, hobbies and experiences. The problem is not spending itself. The problem is spending without awareness, or spending to keep up with a lifestyle that does not match your own circumstances.
Deanna shared a memorable example of being asked to contribute $100 towards a friend’s Prada bag gift at age 20. She could not justify that amount based on the hours she would have to work, so she gave what she could afford instead.
That moment reflected a larger lesson: managing money also means knowing when a lifestyle, social circle or expectation is not aligned with your financial reality.
Young people do not need to have everything figured out immediately. But they do need to start recognising trade-offs.
Your Allowance Habits Can Shape Your Salary Habits Later
The key message from the episode is that allowance may feel small, but the habits formed around it can be surprisingly lasting.
Rationing daily allowance teaches trade-offs. Managing monthly allowance teaches pacing. Saving for a phone, camera or hobby teaches delayed gratification. Working part-time teaches the value of time and effort. Tracking spending teaches awareness. Using a debit card teaches responsibility.
These lessons matter because one day, allowance becomes salary.
And if someone has spent years learning how to stretch limited money, set aside small amounts, track spending and make conscious choices, they are better prepared when the numbers become larger.
Financial confidence is rarely built overnight. More often, it comes from small decisions made repeatedly: choosing not to spend everything, saving even when the amount feels small, and learning from the times when money runs out too quickly.
So, should young people save their allowance?
Yes — but not because saving allowance alone will change their financial future immediately.
They should save because it helps them practise the habits they will need later. And in personal finance, the habit often matters more than the amount you start with.
Catch the full episode of DollarsAndSense’s Growing Up series on YouTube, or listen to it on Spotify. Follow and subscribe to DollarsAndSense on both platforms to get the latest episodes as soon as they are released.
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