Mums and money: what you need to know

Collaborative post by another author. Being a parent can be incredibly tough. Many mums might find that they are in charge of the majority of parenting, as well as looking after the house and earning an income on the side. This can involve a great deal of responsibility. Therefore, implementing a few smart money actions may be able to make life simpler, as well as automating some aspects of your finances. Doing so can also be a great way of teaching your children how to be financially independent, which could be vital for them in the future.

A woman worried about money stock image from canva pro

Cover for the worst-case scenario

Regardless of your age, there is always the possibility that something might occur which means that you are no longer around for your children. Rather than dwelling on any worries, you may instead want to put contingency plans into place. One good solution can be to take out a joint life insurance policy with your partner. This may pay out less than single policies, but can result in lower monthly payments. This works by paying out a single amount of cover when one of you dies, allowing the surviving partner to still be able to make ends meet while navigating that difficult period. This is especially important if you have a mortgage and can be a requirement by some banks.

Prioritise saving

Although it can be fun to spend money on little gifts or trips out for your children, this could see you end up struggling. Having savings can make it easier to face unexpected costs, such as the need for a new school uniform or repairs on your car. A savings account can differ from a current account, so you may want to check that you are depositing or transferring your savings into an account that can help them grow. Learning some better ways of saving money may allow you to learn what percentage of your income to save, as well as how to automate those payments. 

Delegate and reward

As your child grows, they will become more capable of undertaking certain tasks themselves. This can include making their bed, assisting with laundry, and even helping to keep the home clean. Teaching them how to complete these chores themselves could help them to grow up to be more independent and run their own home. This can also help to reduce the number of jobs left for you. Some families choose to incentivise this with pocket money, you may also be able to help instil good saving and spending habits, as well as teaching them to avoid impulsively spending money. Chores and pocket money can give your child an introduction to what working life is like, preparing them for the future.

Looking after your finances could help to make life easier for you as a mum. By planning for both short and long-term expenses, you could reduce some of that worry and even enable your children to gain some important life skills. By focusing on saving money, you may also find that you have more disposable income put aside for larger expenses or more luxurious purchases.

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