Mothers will give away their last cent to take care of their families. Here are 3 tips to ensure it never comes to that. Happy Mothers Day!
Published: Friday, May 12th 2017
Mothers are a selfless bunch. They give up their bodies, their sleep, their time, and put careers on hold, to take care of children who may not register the sacrifice until they have children of their own. Only to get a bunch of flowers that will die within a week. This Mothers Day, get the gift that keeps on giving (not the free hug coupons, either). Get your finances in check, so you can buy yourself the Mothers Day gift you actually want.
According to the latest Old Mutual Savings and Investment Monitor, 76% of South African women feel financially insecure. Which would explain why they’re more conservative with their money than men, and 8% more likely to stick to a budget.The report also found that 42% of local households are headed by single mothers. Only 12% of whom receive financial support from the fathers of their children.
Mothers Day Money Tips That Pay
1. Plan For The End In The Beginning
Tyra Banks told Essence Magazine that this is the best advice her mother has ever given her and she hopes to install it in her own son, York. Banks learned that managing her money well comes from having a vision of making something substantial from whatever little she had. Her mother’s early lessons in strategy still helps her navigate her business decisions today.Moms, similarly, should have short-, medium-, and long-term savings goals according to what they envision for themselves and their families. This vision should include the day they’re no longer around to make decisions.Before you selflessly give your extra cash to [insert family or friend’s name here], consider these financial goals. Are they met? Do you have an emergency fund that would make you feel a bit more secure financially?
2. Don’t Buy Your Kid’s Love, Invest In Their Futures
As children become older, their dependence on their mothers’ attention and affection wanes. But, not their dependence on their mother’s money. It’s not beneath any mother to try and buy back the good old days with the latest (and most expensive) items on their kid’s wishlist. But, as soon as the dust settles on said gift, you’re back to being the mom who ‘just doesn’t get it’. Only now, you also have buyer’s remorse.It might be a long shot, but when you teach your child how to save, manage their money, and invest – that stays with them forever. Unlike those new shoes that will be old news by next season. The best part is, it doesn't cost an arm and a leg to impart good financial principles. Just put your money where your mouth is by practicing what you preach. With the savings from the ‘love gifts’, you can afford to now, too.
3. Pay Yourself First
A conservative attitude, towards money, may work when saving for Christmas, but it doesn’t do the same trick when saving for retirement. The Old Mutual monitor said 22% of the women surveyed were already putting aside money for Christmas and other year-end expenses, but the proportion of total women saving for retirement is only 47%.72% of South African women are, or will be, financially supporting their parents this year. Forget the pricy Christmas gifts, they’ll be long forgotten when you have to rely on your children to support you. Don’t delay saving for your retirement. Pay yourself first, your children may, or may not, thank you later, but they’ll appreciate the gift of financial independence.