Being a Mom is one of the toughest jobs in the world. Made out to be responsible for every whim and want of their offspring, they somehow make it all work. But to be the best Mom you can for your family, you need to be financially smart.
The days of leaving women out of the financial loop are over. More than capable, a well-informed Mom can keep the ship running smoothly. Freedom Debt Relief has some financial tips for Moms.
Don’t Let Your Children Ruin Your Finances
We all know that mothers will self-sacrifice for their children. But this can cause serious financial issues if left unchecked. Let’s be clear: there is nothing wrong with covering a bill or getting a special gift for your child once in awhile. The problem is when there are no boundaries.
When children leave the nest, they need to learn to fend for themselves. Moms who are continuously paying for a child’s expenses create a dependency. This dependency can stunt a young adults development as well as be financially ruinous for you in the long run. So the reality is while it may not feel good to give tough love to your child, it is better for both of you in the long run.
Another big financial issue Freedom Debt Relief sees is when a mom sacrifices their own financial well being to pay for a child’s higher education. While it may be hard to tell your child you can’t afford to pay for their college, in many cases it must be done to protect your future. Children can still go to college by taking on loans, getting a part-time job, looking for scholarships, or attending a junior college. Forcing your child to be self-sufficient is not a bad thing.
Understand Your Family’s Financial Picture
There are many families where Mom is right in the mix in the finances. But in some families, Mom seems to stay out. Freedom Debt Relief thinks moms should always be savvy as to what’s going on with the family finances.
Consider a situation in which you lose your spouse. You’ll want to have an understanding of what your monthly income is and what expenses you have. You’ll also need to know what bills are due and when.
Freedom Debt Relief has seen too many families in debt because a family was just started and the main provider is lost.
While it is an uncomfortable topic, Mom’s need to be on the frontline making sure they are covered in case the worst happens. Your spouse’s insurance policy at work is likely not enough. You’ll also want private insurance.
Consult with a financial advisor to find out the plan that is right for you. You’ll need to consider factors such as your mortgage, expenses, and future plans.
Along those same lines, Mom’s should check any life insurance policies or retirement accounts to ensure that they are the beneficiary. The last thing you want is a 401(k) with the wrong beneficiary or no beneficiary at all. These things are easy to fix when the person who holds the accounts is alive, but extremely difficult if not. Freedom Debt Relief recommends getting ahead of this potential issue.