Mother knows best.
We all have turned to Mom a time or two for advice. Parental figures are huge influences in our lives, especially when it comes to the financial lessons we learn from them. Much of what we learn from our parents resonate with us for the rest of our lives and is passed along from generation-to-generation – and finances are no exception!
In celebration of Mother’s Day, we’re looking back at the best financial advice we’ve received from the leading women in our lives.
“Save for a rainy day.”
Because one day, that rainy day will finally come. Creating an emergency fund is important for those unexpected expenses that seem to sneak up on everyone. It’s easy to believe that emergencies will never happen. Having a fund in your back pocket for these expenses will ensure you’re not completely caught off guard.
“The earlier, the better.”
Start saving for retirement early. It’s difficult to imagine your retirement years when you’re in your 20s and 30s, but starting a retirement plan as early as possible will only help you in the long run. Take advantage of your company’s retirement offerings and contribute as much as you feasibly can.
“Think about your future.”
Saving for the future can take many forms. Maybe you’re looking to go back to school, buy your first home, want to expand your family, or even take that luxury cruise you’ve been eyeing up. The first step is knowing what you want in the future. The second step is planning how you’re financially going to achieve that goal. Once you establish the goal and the steps needed to achieve it, it’s up to you to make that happen (with words of encouragement along the way from Mom, too).
“Do you really need that?”
But, seriously. Do you really need that new handbag? Before making a purchase, it’s helpful to get into a habit of taking a step back and contemplate the purchase first. Could the cost of this item go towards your vacation fund? Could you use this money instead to help pay extra on your student loan payment this month? In all, if the item is not a necessity, it may be best to skip the checkout line.
On the flip side, it is important to reward yourself for a job well done. We all work hard everyday and sometimes, it’s fun to treat ourselves. The important thing to remember is to not get into a habit of doing it too often. Treat yourself (and Mom), but do it within your means.
Always keep these Mom approved financial tips in mind and you’ll surely make her proud!