March 9th, 2023
Mothers, especially young ones, very often depend on their husbands for money. That means that they are often short on cash. However little the amount of cash moms have on their hands, they need to develop good money habits to grow their money.
To this day, I very much appreciate my accountant telling my husband that the CCB money should really be mother’s money. This is the money that, in ideal world, we would be getting for our hard work as mothers and wives. All the work that women have done for free since the times immemorial, can really be called volunteering, because it is unpaid.
So, the money that the government gives the families to help offset the expenses of having children (CCB), should be given to mothers. Mothers! This money can be put to some good use. Develop these six money habits:
One: Set up an investment account for yourself.
Put part of the CCB money to your investment account and save for retirement. Ideally, you can transfer this money into a Tax-Free Savings Account and invest in index-funds or bonds. It can be done through a platform like Questrade where you can choose a pre-made portfolio or you can manage it yourself. Learning how to invest should be high on the list of priorities of every young mother, because thanks to the workings of compound interest, the sooner you start to invest, the better off you will be.
Two: Set up investment accounts for your children.
Set up investment accounts for your children and start to regularly put away money into those accounts. The younger the child is when you start doing that, the more the money will grow, and the more money your child will end up getting when she/he is eighteen. You will have to set up these accounts in your own name and it can be transferred to your child when she/he is eighteen. With compound interest of 9%, $50 contributed monthly for 18 years is going to grow to $24,780.80. If the child decides to keep saving $50 a month for the next 50 years, s/he will have $2,331,689.17 when s/he is 68.
Three: Save for your children’s education.
Set up a RESP for each child and make sure you get the government grants, if your family has low income. This money will pay for a big chunk of your child’s education. That is going to prevent the children from having huge debt to pay off when they start their careers.
Four: Generate extra income.
Even as a busy mom, have a side hustle, that makes you a little bit extra money. Research easy ways to make money. Put your talents to the test to make you money. Sell items online. Babysit friends’ kids. And then? Put every dollar you make to work. It’s more than okay to reward yourself with a purchase from time to time, but don’t spend all your hard-earned money on unnecessary consumer items. Seeing your money grow will give you incredible sense of satisfaction.
Five: Be mindful of small expenses.
$1.99 here and $2.99 there quickly add up to big sums. Do not take large amounts of cash when you go shopping. Avoid shopping when you angry or tired, because you are more prone to spend more in this state of mind. Refrain from using credit cards. It is too easy to swipe your card and you often don’t even remember what you have spent your money on. Write down all your expenses in a little notebook. It helps you see how much you spend and what you spend your money on. It can be a sobering experience to see clearly how much money leaves your wallet.
Six: Automate your savings/investments and bills.
Savings and investments should come out of your account first. The rule is that you save and invest first, and what is leftover you spend. This way, you will always save and will not miss out on the benefit of compound interest. Also, automate your bills to avoid paying fees and for the peace of mind.
What money habits do you have that let you keep more of your money?