Growing up we all pick up a thing or two about managing money.
Even though we were never in any position to practice it.
Some pearls of wisdom we learned through observation. Gleaned from eavesdropping on adult conversations.
By seeing our parents’ mistakes and choosing to avoid doing so as adults.
But others are passed down with purpose, straight from the mouths of our mothers. “Always save”, “avoid debt”, “spend with care”.
Other than those evergreen financial tips, here are some that you may have heard your mum repeat throughout your childhood.
8 Tips Our Mums Taught Us About Money
Be Wary of Credit Cards
Credit cards offer a wealth of benefits (so long as you’re responsible enough to use them.
Credit card users can enjoy cashback, reward points, travel and shopping benefits and other perks.
But it does come with a lot of caveats. Before applying for a credit card, it’s important to understand the responsibility that comes with it.
Credit cards are not free money and should not be used as such.
They require discipline and a clear understanding of how they work.
Make sure you have the financial means to pay off the balance every month to avoid accumulating high-interest charges.
Justify your Spending
Remember those times your parents asked why you needed a new toy.
Or a new pencil case. Or a new backpack?
Do you end up asking those same questions to yourself as an adult? Well, it’s no wonder because it’s an age-old way to save money.
Finding the difference between needs and wants.
Every time you want to spend on something expensive, ask yourself if the purchase is justified. Only use it for necessary expenses such as bills or groceries.
Avoid making impulsive purchases that you cannot afford or do not need.
Avoid Paycheck Sins
Most people spend their hard-earned salary as soon as it funnels into their bank accounts.
Whatever crumbs are left are spent on investments or savings. But the opposite should be the norm.
Set money aside for investment as soon as you get paid, not at the end of the month.
Investing early is key to building wealth. Set aside a portion of your income for investments, such as stocks, mutual funds or a retirement account, as soon as you get paid.
Don’t wait until the end of the month to see if you have any money left over.
Settle your Debts Quickly
We all incur debt throughout our lives. Since the rise of student loans, Malaysians are now paying more towards debt than ever before.
In the case of credit cards, your debts can accumulate quickly if not paid off promptly. And remember, there will be those pesky interests.
So, make it a priority to pay off your debts as soon as possible to avoid high-interest charges and negative effects on your credit score.
Know Where Your Money Goes
We all probably grew up with thrifty parents, even if we were relatively well-off.
But if you asked your parents, especially your dad, they probably have a ledger somewhere with exact amounts for each month.
Now as an adult you may be doing the same.
Tracking your expenses every month is so important for understanding where your money is going.
This will help you identify areas where you can cut back on spending and save more money.
Start Earning Money Early
The earlier you start earning money, the more time you have to build your wealth.
Consider taking on part-time work or freelancing to supplement your income and invest in your future.
People who start getting jobs as soon as they finish school also start accumulating for their EPF.
This means that you’ll get more money when you retire. If you have a child yourself, encourage them to start a part-time job in college.
Even if they have loans or are under a scholarship. As long as it doesn’t interfere with your studies.
Marriage is Not an Income Source
If your mum was a career woman, she will have drummed this lesson in you since childhood.
Marriage should never be seen as a means to financial security.
While that was the norm back when women weren’t allowed to get jobs, times are much more progressive now.
Women can earn their own wealth and even open their own banking accounts. It’s important to have a stable financial foundation before considering marriage.
Relying on someone else for financial support can lead to financial instability and tension in the relationship.
Avoid Expensive Gift-Giving
We all have a habit of showing off, even though we can’t necessarily avoid it. And this includes outshining others during gift-giving.
Unless it’s someone really close and special like a child or a spouse, avoid going all out in the gift department.
Remember, gifts should be thoughtful and meaningful, not expensive. Avoid overspending on gifts and focus on the sentiment behind the gift.
Consider DIY gifts or experiences rather than expensive material items. With the rising cost of goods,
The Wisdom of Our Elders
Our mums provide us safety, love and most of all wisdom.
Not just about life, relationships or health but also about how to manage our wealth.
Just so we can avoid their mistakes and lead a better more financially secure life.
So, practice these tips (even if this is the first time, you’re hearing about them) and keep your mother’s wisdom alive in your everyday financial decisions.
Whether that’s being careful with how much you spend, paying off loans or even just changing the way you save money every month.
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