Gone are the days when men used to be the sole breadwinner and take responsibility of the family’s financial needs single-handedly whereas women were restricted towards household chores. In the present world, women are keeping pace with men in almost every field including financial responsibility for the household.
Since working women strive hard to earn money they also need to manage their finances very wisely. Here are some financial tips for all working moms which can even help them manage parenting smoothly:
- Avoid impulse buying: As a working mom, you play three major roles a professional, a house maker and a mom. But all of this comes with great responsibilities. Impulsive buying is the most common mistake done by most working moms. Since you are constantly juggling between these three roles, you end up satisfying yourself and your child with lavish items that may not be necessary. This impulsive buying on a regular basis will not only impact your monthly finances but also inculcate a similar habit in your child. To avoid this, make a list of necessary things and lavish things. Don’t curb your desires rather switch this impulsive buying habit to a reward based buying one. So whenever you and your child achieve something great or do a good deed, these lavish things can act as a reward so that both of you continue creating wonders. This reward based purchase will help you manage your finances and encourage your child to do something better at every stage.
- You also need insurance: As a working mom you are always in a race. And while you are eager to provide everyone in the house with the best, you may end up forgetting yourself. As an earning member of the house you are an asset, your income contributes to the household expenses and your family’s financial goals. Protecting yourself with a life, health and critical illness insurance becomes imperative. While health insurance will cover your hospitalization costs for common ailments, a comprehensive protection plan will cover you against major critical illnesses like cancer, heart disease, etc. and also act as an income replacement in your absence. In this way, as a parent you are ensuring complete security for your child.
- Save and invest wisely: A working mom has an extremely important role in the family. The family has a better standard of living as your income contributes towards the family fortunes. When your income improves or you receive a performance bonus, avoid spending all the money. Save it and invest it accordingly in plans that provide maximum returns. Your salary or income is helping the whole family stay financially strong.
- Plan for the future: Your child’s education and marriage both are going to be extremely expensive. Inflation and competition is going to add to the financial pressure. You and your spouse will have to work together to chase these important financial goals. Start looking for child education plans that can help you save regularly and will avoid last minute financial pressure.
- Interact with other working moms: Listening and interacting with more working moms like you, you will be able to handle your child, family and finances better. Sharing experiences and challenges will help you understand how to manage money issues in a better way. This interaction will also encourage you and boost your confidence.