Women’s Month is an opportunity to celebrate and honour those who truly want us to be the best we can financially be and otherwise – our moms, grannies, aunts and sisters! In this spirit, we have rounded up 5 of the truisms that these women everywhere share with their families that apply as well to financial matters as it does to life in general.
Here are some ideas to help you be a more savvy money mentor for your kids as they learn about money and how to handle it.
1. Use common sense
In most matters – including financial issues – common sense is a great advantage. For example, if an investment opportunity sounds too good to be true, it probably is. Similarly, spending less than you earn, buying only what you really need, avoiding high-interest debt and understanding a contract before you sign it, is simply good common sense.
2. A penny saved is a penny earned
It may have seemed like an obsession to many of us as children but saving a few Rands on every purchase was often how moms – and their moms – taught us that saving R10 is the same as earning an extra R10. By buying only what was really needed, shopping for the best deals, buying at sales and avoiding the high cost of name brands and labels, they showed us how even seemingly insignificant savings can make a real difference over time.
3. Save for rainy days
Ever heard a mom or grandma saying: “save it for a rainy days”? Essentially, it is a simplified version of the advice a financial consultant would provide: building up an emergency fund for life’s unexpected events, whether broken appliances or losing a job; putting money away for retirement and saving up for those special days, such as birthdays and holidays.
4. Waste not, want not
Whether it is about taking time to compare shops for the best deals, making large purchases only after careful consideration, or saving up even the smallest amounts consistently for years, moms, grandmas and aunts often teach through example how important patience is in financial matters – from saving over time to harness the power of compound interest to sticking to a long-term investment plan.
Even in today’s complex financial world, these pearls of wisdom that moms, grandmas and aunts everywhere teach hold true, and while they may not be savvy about the finer details of complicated financial matters, they remain a very important source of financial advice.
In fact, research has shown that our financial behaviour reflects to a large extent what we learnt from our parents and families. Similarly, a recent US survey by Varo Money revealed that when it comes to seeking financial advice, 23% of Americans turn to their moms rather than a professional financial advisor, or even their fathers. For millennials, the number is even higher with 35% relying on mom for financial advice.
The advice our moms, grandmas and aunts share will go a long way towards helping us to be the best we can be – financially and otherwise. For the more complicated financial issues, remember that you can speak to your financial coach, who is always ready to help, whether to implement mom’s or grandma’s advice or to provide modern-day solutions to your financial matters.