Moms And Finance

Today not too many moms are packing cold hard cash in their wallets. Plastic is the name of the game. More and more moms find it simpler to carry a variety of credit cards when they leave the house to do some shopping. It's just more convenient.

Credit Cards Make You Spend More

The unfortunate fact is that there's something encouraging about all those little cards nestled in their appropriate slots that causes you to spend more--about 30% more according to studies on the subject. Even a debit card can fool a mother into thinking she has more buying power than she really has because it's easy to ignore budget issues when you have that hot little card in your hand.

Children Need To Understand About Money

Besides ruining an otherwise sensible budget, cards set a bad example for our children. They see us load up a grocery cart, whip out a card and leave with both the card and the foodstuffs. In the eyes of your children, you haven't exchanged anything for what you've purchased. It's important for children to understand that when food is bought, money is gone from our account; that the food is in place of something you once owned and are now without.

The solution is to leave all credit cards at home. It may not be easy, it may be inconvenient, but it teaches both parents and children about our spending power when we must stay in a budget and come prepared with cash to pay for our purchases. The truth is that if you've locked your cards away, and it's hard to get to a bank on a snowy day, you'll find a way to balance your budget within your means. That in itself is a valuable lesson for both adults and children.  

It's also important to have a realistic idea of when and how to start building a nest egg. Too many parents think they have loads of time in the future for saving serious money but this is a mistake. The older a couple gets, the more liable they are to have serious expenses. The time to start saving is now, or as soon as you can. A good way to save money is to have some money deposited automatically into a savings account. Even a small amount, deposited on a regular basis can accumulate into a significant nest egg.

Remember to think before purchasing: do you really need that item? A little bit of thought can save a lot of dollars.