As we close out April (sidenote: what??? 😑 how did that happen so fast?) and Financial Literacy Month (!!!), I can't let the opportunity to chat about M-O-N-E-Y go by.
As a mom, I once struggled to pay rent and buy basic necessities for my children. It got so stressful that I cleaned houses in my free time for cash just to buy groceries for my kids. Yup, ya girl was washing out toilets and tubs. I joke about it now, but it was tough to make ends meet.
I would do anything to stay afloat for my family because that's what we do as moms (that's why WE ARE MVPs). I used my 401k to get out of an abusive environment and was still 5 months behind on rent in New York City before panic attacks drove me to come back home to Chicago. I felt like I was in a ditch of emotional, financial and physical despair.
When I think about Moms Winning, I always include the economic advancement of moms, which provides more options and opportunities for ourselves and our families. And, not just for options in education and living spaces but also health, safety and wellness.
We all know moms play an important role in the family, but they overwhelmingly steer their family's purchases as they research products, do the shopping, and make countless decisions when it comes to budgeting and spending.
As a single mom of two kids, I've worked myself out of a $40,000 debt to having a $25,000 savings in 6 years. My hardship taught me how to wipe out unnecessary spending, focus on critical needs and taking one step at a time. I was fortunate enough to purchase a home a year ago and start building my own wealth. My hard times taught me how to become fierce with finances and change my habits and mindset to one of leveraging money for my good instead of feeling chained to it.
Before we deep dive, did you know these interesting stats:
A recent survey by Citi's Women & Co. found that after having a baby, money becomes a woman's second highest priority, after parenting
Lack of financial literacy cost 15% of adults at least $10,000 in 2022
75% of American teens lack confidence in their knowledge of personal finance
23% of U.S. adults ages 18 to 29 have credit card debt that's over 90 days overdue
42% of adults worry about meeting their daily expenses as of 2020. 40% were concerned about their financial status, while 37% reported they were just getting by financially
Whoa. I know we all think about it (money)...and many of us stress over it. Now, let's discuss the basics and some tips for setting our kids up to win at every age.
THE WHAT: Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.
THE WHY: When you are financially literate, you have the foundation of a relationship with money, and it is a lifelong journey of learning. Kids who grow up with a good financial education are less likely get stuck in debt cycles, are better prepared for emergencies and have the surplus to give to charity and support their communities.
THE HOW: There are fun ways to model financial education at every stage your children are in:
Ages 3-5: Review different kinds of money, how money is earned, having to wait to get something you want, games that deal with money, and learning the cost of things as you shop. When I lived in the Bronx, I plastered my walls with educational posters about many things, money being one of them.
Ages 6-10: Knowing the difference between wants and needs, trade-offs with spending, knowing money can run out, learning how to compare prices, let them see you giving money to others (charity), and give allowance for firsthand experience with money. For my girls, allowance started during COVID and my girls would always spend it on Robux 10/10 times. 😆 #iyiyk
Ages 11-13: Start the habit of saving (a dime for every dollar), understanding credit (like a loan with interest), and involve them in major purchasing decisions. I also started to help my girls with building streams of revenue for themselves like lemonade stands, video editing (all their tech time is paying off! 😆) and babysitting.
Ages 14-18: Avoid credit if can't pay the balance off every month, paying taxes with income, the importance of an emergency fund, and basic investing options.
Next steps: You know I'm all into goals. And, you've probably set some for yourself this year. I would advise to always include your economics in your goal-setting activities.
When I do my workshops on life strategic planning, we are always including our financial visions because it does in fact affect a lot of our lives. Over the past couple of years, I've been adopting new money mindsets to activate another level, and relationship, with money. Here's a book that I used to help.
So mama, what's a financial goal you have for yourself this year? Drop it in the comments. And, remember to share this with a mom-friend right now. I need you in building our Moms Winning World.
Until next time...
Let's Win ❤️👑