Moneycontrol
Mar 08, 2017 03:18 PM IST | Source: Moneycontrol.com

International Women's Day 2017 : 3 steps to be a money-wise mom

Mothers should make effort to understand money better. This includes understanding how much money is being earned by the household (including herself and the partner).

International Women's Day 2017 : 3 steps to be a money-wise mom
Anil Rego

Mothers are considered to possess a treasure of information about many things such as cooking, healthcare, keeping tabs on whether you have cleaned your room, and just about every single thing on earth except money! Somehow, money has been the realm of daddy dear, at least in majority of households. If you are a mother, this article is for you on how you can be a money-wise mom: if you already are not! If you are not a mother, still read on and pass on the info to all the lovely mums you know!

# First Step: Know your money! 

This simply means that mothers should take the time and effort to understand money better. Obviously, this step then translates into mothers understanding how much money is being earned by the household (including herself and the partner), how much is being spent on essential expenses, how much is being saved, how is it being saved, and how better can the money be spent or saved! Not too difficult a step, considering how mothers have the uncanny knack of getting to the bottom of anything that they set their minds to!

# Second Step: Discuss money and understand the science of investing

The second step towards becoming a money-wise mommy is to discuss money: with the husband, with the children, with friends and family! Every mother has to take this effort to have conversations revolving around money with the near and dear ones.

Conversation with the partner is of utmost importance as it has the potential to lead to a deeper understanding and love between the couple. The talks should not be just restricted to how much is earned, spent, or invested, but should act as an interesting knowledge sharing session, which educates both of them.

Similarly holding dialogues with the children on money, the need to save, and avoiding frequent indulgences, helps in the children not only understanding about the enormity of money but also gives them the confidence that their momma knows everything and finances are no exception! Having discussions with other near and dear ones like siblings or friends, will help in putting things in perspective for the ladies!

A mother also needs to understand the science of investing as it will help her in planning finances better. She can help her partner in better financial planning and management. When two heads work together on achieving financial goals, the chances of success are very high! Also, by being involved in the process of financial planning and investing, a mother gets a better grip of her life.

#Third Step: Be accountable and independently manage one’s personal finance

This step will seal the deal of a mom becoming money-wise. Once a mother follows the first two steps, she can do this step with ease. She has to be accountable for the money being spent and maintain her accounts properly.

She must also plan all her investments wisely and be involved in the actual act of investment. Furthermore, she should also manage her personal finance independently. It is fine to discuss and seek opinions but she should not be dependent on any one to make her investments. This way a mother will have financial ambitions the way she has aspirations for her kids, and being the strong lady that she is, she will achieve them all!

A financially independent mother also teaches her children to manage the money well. This is the kind of education which is not imparted at schools but is a paramount life skill which helps people survive through trying times. When money management is taught by mothers to their children, the children grow up to be smart individuals who can take care of their financial well-being.

There are just three simple steps for a mother to become a money-wise mom! These steps are straight forward and easy to follow, and adopt. Every mother who equips herself with financial suaveness also brings on the table a new dimension of confidence. This in turn, helps her imbibe within her child a similar confidence and knowledge! It is time that all mothers turned into money-wise moms and added an extra spring to their steps!

(The writer is CEO and Founder, Right Horizons)
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