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Five wise money tips from moms

In honor of Mother’s Day, take a moment to recognize that many of your smart choices about money may have been influenced by your mom’s advice. Here are some valuable money tips gathered from mothers over the years. Some of them may sound very familiar.

  1. Spend less than you make. This one seems almost obvious, but there have been setbacks and changes to the economy that may have forced you to overspend your income. The smart thing to do is track your expenses for at least a month, see where you might cut back and then make a budget you can stick to.
  2. Start saving today. Even if it’s only a few dollars at a time, make saving a priority. You never know when you might need that financial cushion to avoid going into debt.
  3. Have a rainy day fund and an emergency fund, too. You need both because there is a difference. A rainy day fund can be used for a smaller expense, such as a broken dishwasher or a much needed vacation. An emergency fund is for major life events, such as job loss or a serious medical or dental expense.
  4. Borrow as a last resort. Establishing rainy day and emergency funds can help you avoid having to go into debt for unexpected expenses. Using a credit card or getting a loan can be an expensive solution that then creates a further strain on your finances.
  5. Know the difference between wants and needs. You probably want the best for you and your loved ones. But not knowing the difference between a want and a need can cause you to overspend and go into debt. If you can easily afford all your wants, then there isn’t a problem. But if you can’t, don’t let mistaking wants for needs affect your financial well-being.

What wise money tips did you learn from your mom? Don’t forget to thank her on Mother’s Day.

And if you haven’t taken some of her advice, such as having a rainy day or emergency fund, click here to take a look at the account choices at CIT Bank that can help you get started right away.

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