As a mum, do you find it difficult to stay on top of your finances? You may have the support of your partner or parents, but still, a lot of the financial decisions may fall on you as you plan to reach financial goals and provide everything that your children and family might need.
When it comes to managing your finances, it may seem like an impossible task as there is so much to consider. From saving for your children and teaching them about the value of money, to finding time to invest money into assets to set them up with a stable future, it all takes time and careful amounts of planning.
As a parent, you want the best for your child and also want to do everything you can to set them up for success. You’ll also have your own financial goals to take into account, such as retirement, family vacations, and perhaps even starting a business. Maybe you'll start by saving money and implement frugal spending habits to help reach financial goals, and those who already have a significant amount of money saved may choose to explore other options like investing to set up another form of income.
It can be more challenging to save when you have children to think about as you have to take their commitments into account as well as your own. Saving can be incredibly difficult when you have a mortgage or rental payments to make, and college tuition pots setup. So, we’ve put together some of the best ways to help manage your finances, along with some tips and tricks along the way.
Teach Your Children the Value of Money
Knowledge is power and passing on invaluable information about finances to your children will not only expand their learning, but will set them up to start their adult lives with some financial understanding, and hopefully with some savings too. When it comes to teaching your children about the value of money, think of it as, instead of investing funds on their behalf, invest your time into training them, so they know how to save, and even invest their own money.
Keep it simple and start small with a piggy bank and work your way up to a savings account. This will encourage little ones to be patient as they save for something they truly want, and to be more appreciative of the things you buy for them. It’s a valuable lesson to learn that ‘money doesn’t grow on trees’ and you have to work and save for the finer things in life.
Use Investment Apps
Children nowadays, and parents, spend a lot of time on smartphones, so why not utilise this time to play around with some more productive apps such as ones that offer ways to save and invest your money? Investment apps can provide a fun way to round up the pennies and watch the savings pot increase, and for older kids, why not encourage them to learn about the stock market? There are multiple apps available with controlled parental allowances to give children the opportunity to invest their own savings in stocks.
As a parent, you could save some money for your children to invest, or give them the responsibility of saving their own using an app to monitor their spending habits. After teaching them about the value of money, this is a great next step to put their skills into practice by putting their own capital towards purchases or investments of their own.
Invest in Your Future
Sometimes saving isn’t enough, and you have to take the time to invest your money into an asset, which could provide a wonderful gift to your children in the future. Investing can offer a hands-off way to earn an extra income, help you to reach your financial goals sooner, and can create a retirement plan or provide a future inheritance for your kids.
Choosing to invest and build a diverse portfolio is an excellent way of becoming financially secure; it's a great option to earn money around your other commitments. If you have some savings already, you may consider buying a second property which can provide a stable asset if kept for a long period of time. As a property investor, not only will you have ownership of a valuable asset which can make you money in the short term through renting it out to tenants, but it can be passed down to loved ones or sold further down the line as a way to fund your retirement. For anyone who has never considered or thought about property investment before, there are a whole host of property guides and podcasts available from industry experts like RWinvest who can offer advice to help you get started on this new venture.
These guides range from specific information on areas such as Liverpool and Manchester, to more fundamental bits of information such as how to get started in the property investment market and what to consider when starting out.