Every mother should know how to arrange the finances of her family well. This applies whether she is living with a partner or she is single. This applies very much if she has children. Aside from taking care of her children, she should always leave some time for thinking about the family budget, so that the family will always have enough during times of prosperity and during dire financial straits. Whether one parent or both earn the money, it generally falls upon the mother to decide the financial priorities of the family. Mothers are aware of the state of the market and are also more acquainted with educational expenses because she has the time to look (the husband may be working such that he has little time to peruse financial issues).
Financial stability is an ongoing issue for many families now. There are many single mothers nowadays who can’t figure out how to meet the expenses of their children. There are even couples that, after years of being together and having children, begin to argue and quarrel because of financial issues. So here are 3 financial tips every mom should know. Actually, there should be more than 3 financial tips every mom should know, but we can summarize all of these tips into just three easy-to-remember tips. These three tips can act as rules of thumb for every mother to remember every time she is faced with everyday finances and significant financial decisions. Here they are:
- Save money. This is one of the most obvious tips, yet this is a tip that can easily be forgotten. There are families that spend too much on nonessential items such that they forget the essential expenses in the future. Mothers should know the things they are saving money for, and here they are emergencies, especially medical emergencies; retirement; and the education of the children, especially for college. Mothers should always consider future scenarios, and they should save enough for these scenarios. Simply saving a small percentage of the monthly salary (5-10%) can go a long way (if we consider also compound interest.
- Start budgeting – Budgeting is important so that a family will spend most on essential expenses and only small amounts on nonessential ones. Budgeting can also make mothers examine the financial state of the family. Through budgeting, mothers can find out where exactly to spend more on, where to cut down expenses, and which additional expenses can be worthy of adding. Budgeting can also teach children to prioritize the right things when spending money. If you are a mother, you can show the budget plan to your children, and you can now answer the question to why they can’t always have what they desire to have – it’s because they have to get what they need first, and resources are limited.
- Consult a financial planner – Mothers can get a financial planner to help them manage their present expenses well. Financial planners can also offer tips regarding many other aspects of finance. These include future expenses, debts, and how to use credit cards (perhaps the most misused financial instruments) properly. Financial planners can set a mother’s financial priority straight.
These 3 financial tips can really help mothers start handling their finances and making sure that the family’s important needs are cared for.