Happy Mother's Day 2024: 5 financial tips that can help your mom achieve financial freedom

In the journey of motherhood, amidst nurturing and caring for the family, one crucial aspect often overlooked by the mothers is financial planning. With the evolving dynamics of modern families, moms play a pivotal role not just in managing daily expenses but also in securing the family's financial future. 
 
In this article, we have listed some financial tips for all mothers to ensure long-term stability and security. 

Financial vision

Women must establish their long-term financial goals. This includes setting objectives for their family's education, healthcare, retirement, and other basic requirements. Mothers may guide their decisions toward achieving these goals by establishing a clear financial vision.

Prioritising savings and investments

Mothers should emphasise creating an emergency fund to cover emergency expenses. Knowledge of investment options like mutual funds, SIPs (systematic investment plans), and PPF (public provident fund) might result in long-term wealth growth for all mothers.

Managing debt

Debt may be a major cause of stress in many households. To prevent collecting interest over time, pay off high-interest obligations first, such as credit cards and personal loans. Consider combining loans or negotiating lower interest rates to make payments easier. Create a repayment plan and stick to it until you are debt-free.

Retirement planning

While retirement may seem distant, prudent planning is essential for a comfortable future. Mothers should explore retirement plans such as provident funds, pension schemes, and individual retirement accounts (IRAs) for the golden years of their life.

Financial literacy 

Empowering moms with financial knowledge is essential for promoting informed decision-making. Participating in workshops, taking online courses, or getting advice from financial specialists provides moms with the skills needed to effectively navigate complicated financial landscapes.

A look at these industry women’s thoughts on the importance of financial security.
 
Jyoti Bhandari, founder and CEO, Lovak Capital, says, “As we celebrate the selfless dedication of mothers, let us not overlook the importance of their financial well-being. By embracing financial literacy, mothers can embark on a journey towards financial empowerment and security, laying a solid foundation for their families' future prosperity.”
Motherhood spans generations, and every mother deserves to celebrate her independence and well-being. Happy Mother's Day to all the strong women paving the way!
 
Dr Reema Nadig, co-founder and COO, KITES Senior Care provides a few tips for women.
 
According to her, "Regardless of age, understanding money management is crucial. All mothers should be encouraged to educate themselves on budgeting, investments, and financial planning early in their life. Knowledge is power, and it’s never too early or too late to start."
 
"Plan for Health and Wellness: A healthy mother is the cornerstone of a happy family. Prioritise health insurance and emergency funds specifically for medical expenses. Regular wellness check-ups and a balanced lifestyle are investments in a mother’s future," Nadig added.
 
Anuja Trivedi, CMO of Shemaroo Entertainment, said, "All women, especially mothers, should take charge of the finances at home. They should be partners with their spouses in planning investments and expenses, whether concerning children’s education, buying a house, or supporting elderly parents. Since it is the household's income and investment that is being planned, women being key stakeholders, play a pivotal role, whether they are homemakers or employed. Women have a different lens of looking at present and future situations and can improve the decision-making process in this domain too. It is crucial to recognize the importance of financial security for all mothers, including those who may be homemakers. Retirement planning is a necessity for everyone, ensuring a stable and secure future for themselves and their loved ones. By prioritizing financial planning, mothers can safeguard their family's future and empower themselves with peace of mind."

Swati Bhargava, co-founder of CashKaro and EarnKaro highlights the importance of adequate insurance coverage, including health, life, and critical illness plans, to safeguard against unforeseen circumstances. She also emphasises the necessity of estate planning, including wills and trusts, to ensure smooth asset transfer and financial security for future generations.