5 Financial Tips from Mom
April showers bring May flowers and May brings a plethora of end of school year activities, beginning of Spring sport season, and summer within reach. One day in May we all slow down to honor someone very important - Mom. At Etiquette Financial Partners, Lindsey, Shirley, Lynn and Rachel are all moms that have to make financial decisions for clients or themselves. It made us think of the best financial advice we think our moms have given us.
1. Save yearly to both a 401(k) and IRA.
When Lynn started her first professional job, her mom recommended saving to both a 401(k) and IRA to set her up for retirement. Saving money for the future was a common statement reiterated by all the Etiquette moms. Saving at least 10% of your income is a great goal! Start small if you need to and work your way up to saving more and more each year. Find out more about our Retirement Services here.
2. Save half of your summer earnings for college.
Growing up Eric had to work every summer in high school. Each paycheck, half went into a savings account for college and he was allowed to spend the other half. As he would compare his saving to his siblings, it instilled a firm belief in saving and friendly competition to meet your goals. We encourage our clients to open 529s and plan for their children’s future, but Lynn also encourages her daughter to find scholarships and set set aside time to apply for them. It’s about being smart with your money.
3. Make sure you have Life Insurance and Long Term Disability.
At 17, Rachel’s mom was diagnosed with Breast Cancer. She learned at a relatively young age the importance of having insurance policies in place and knowing the fine print. Luckily, she will be celebrating Mother’s Day with her mom this year, but it educated the family on what-if scenarios and helped put them at ease knowing these were in place at an emotionally difficult time in their lives. How do you get started? Learn more.
4. Be frugal with money.
As Financial Advisors, our team's goal is to make your money work for you, but it involves planning and executing a plan. Being frugal with money can be simple habits you instill, like looking for a coupon code before you purchase anything online, downloading apps for rebates, or following savings blogs around the holidays to get the best deal on the hottest toys. Other habits Etiquette moms follow are meal planning, packing your lunch, and planning for big purchases.
5. Always find a new job before you quit your old one.
As a mom you never know if your child’s impulsiveness or logical nature will emerge. Finding a new job before you quit your old has served Lynn outside of work as well, because it helps her to stay focused and organized on the task at hand. It allows her to plan for the future and take steps in the right direction, but also gives it some time to play out.
On this past Mother’s Day we hope you cherished the memories that go along with being and celebrating Mom!
This is meant for educational purposes only. It should not be considered investment advice, nor does it constitute a recommendation to take a particular course of action. Please consult with a financial professional regarding your personal situation prior to making any financial related decisions. 05/19