It Pays to Remember this Money Advice from Mom
- May 7, 2020
- By: Greenpath Financial Wellness
With Mother’s Day just around the corner, it’s time to recognize the role Moms play in the financial health of our families.
It might not be that much of a surprise, but researchers note the “Mother of all Financial Advisors” is in fact Mom! Many people turn to their Mom for advice on managing money.
This is particularly important in times of financial challenge. The habits we learn in childhood can set the tone for the rest of our lives when it comes to managing finances.
As we head into Mother’s Day celebrations, we wanted to share some of the most common pieces of money advice from Mom.
Set a Simple Budget
What is “Mom Tested, Mom Approved” guidance about managing expenses?
Many Moms have shared the importance of setting and sticking to a simple budget. That’s because for many households, mothers create the financial culture of the family.
Budget expenses often fall into these categories, listed by most important:
- Housing Costs – whether meeting monthly mortgage or rent payments
- Child, Elder Care
- Essential Utilities
- Transportation Costs
- Unsecured Debt – such as consumer and credit card debt
- Non-Essential Utilities
- Discretionary – or the “nice to haves”
Pay Yourself First
Once you have a sense of monthly cash needs, Mom also encourages us to pay ourselves first.
That means setting aside a portion of monthly income in a savings account reserved for medium to long-term savings.
No matter the amount, getting in the habit of paying ourselves each payday is a terrific habit, and sound advice.
To make it easier, consider setting up an automatic savings deposit direct to your bank or credit union.
Setting up automated savings each pay period makes it easy to stick to a savings plan. Start by deciding how much you can save every month. If you aren’t sure, this spending plan worksheet can help you figure out how much you have, and what’s already committed to bills and expenses.
Mom would agree that even saving a small amount is worth doing.
Keep Focused Even During Tough Times
There will be rainy days, as most Mom’s will tell you.
When setbacks hit, like in a time of financial crisis, there can be unplanned changes in monthly income.
This is a time to regroup when it comes to managing expenses. Taking on manageable debt might be an option if the loan amount takes into consideration any existing debt you might have.
GreenPath President, CEO, and mom Kristen Holt notes that drawing on savings funds, getting assistance with housing and food expenses, and keeping a cool head throughout it all is critical during the tough times.
Mother’s Day is a time to celebrate the women who brought us into the world — even if the celebration might be a tad different in this era of social distancing.
Wishing all the Mom’s out there a Happy Mother’s Day!
Remember this Money Advice from Mom
Mom would likely agree that getting guidance from informative, caring financial counselors is also a smart move. GreenPath financial counselors are here for you to provide free, one-on-one financial guidance related to expenses, debt management, budgeting and more.