We all learn how to manage our finances while observing our mothers do so for years. Their money-management skills are something no university or course could teach.
The lessons they impart can serve as a valuable guide for those seeking personal finance tips too.
This Mother's Day, let's look at some of these financial wisdom our moms have shared with us over the years:
Significance Of Budgeting
One of the most important teachings that can be gleaned from mothers is the significance of budgeting, Marc Despallieres, Chief strategy & trading officer at Vantage told CNBC-TV18.com.
Budgeting not only helps in planning for expenses, uncertainties and long-term goals, but it also ensures that there is no overspending, which can otherwise lead to stress and anxiety. Through effective budgeting, individuals can appropriately manage their expenses and plan for future goals too.
Mothers understand the importance of setting aside funds for emergency situations, which can prevent individuals from accumulating debt when faced with unexpected expenses.
Investing For The Future
Mothers encourage investing for the future, whether it be for their children's education or their own retirement. By investing wisely and thinking long-term, individuals can secure a stable financial future.
The only way to see money grow is by investing it. One should start investing early so that time works in their favour. The earlier an individual starts, the longer they can compound money. According to financial experts, first-time investors should spend generous time on educating themselves about investment before taking the plunge.
Saving Money
Our mothers' frugal and resourceful mindset inspires individuals to find ways to save money and maximise their resources.
"Therefore, by following the personal finance tips of mothers, individuals can have financial security and success by building a thriving career and diversifying their income streams," Despallieres said.
Maintaining An Emergency Fund
Not just for short-term or long-term savings, one should always have a rainy day fund to meet those unexpected bills. This is what our mothers taught. We have often seen our mothers keeping money hidden for meeting these kinds of emergencies.
Every individual has different financial needs. Hence, the amount will vary for all while creating an emergency fund.
According to experts, an emergency fund should be enough to fund the monthly expenses for up to 6-8 months, or up to a year if an individual fear a job loss or feel things are uncertain on the financial front.
(Edited by : Hormaz Fatakia)
