STUDIO CITY (CBS) — Mother’s Day is a time to reflect on the important role that moms play in our family’s lives each day. However, their role as the head of finances for many households can easily be overlooked.
Charles Schwab Financial Consultant Casey Mervine stopped by KCAL9 Friday to talk about the role that mothers play in family finances.
Casey’s Finance Facts:
• Keep your financial house in order. Preparing a budget, organizing your financial records and simplifying how you manage the financial aspect of your life can make a big difference in your life. Planning ahead and understanding where your money goes is a foundation for success. A good first step: Track your spending for 30 days and compare essentials with non-essentials.
• Prepare for life’s unexpected turns. Set up an emergency savings fund of at least six months’ expenses to protect your family in case of a job loss or unexpected illness.
• Don’t neglect saving for retirement. If your employer offers a retirement plan with a matching contribution, make sure you’re contributing enough to obtain the full company match. Second, examine your expenses and determine where you can cut back and how you might be able to save more in a retirement plan such as a Roth or Traditional IRA.
• Educate your children and/or grandchildren. Schwab’s latest Teens & Money Survey (2011) found that only 35 percent of 16-18 year olds consider themselves “savvy” about managing a credit card. But most teens are interested in learning about personal finance; in fact, 75 percent say that learning more about money management, including budgeting, saving and investing, is one of their top priorities.
• Use your children’s or grandchildren’s milestones. Financial milstones, like opening a checking account or saving for a big-ticket item, to teach them about financial trade-offs as well as important concepts like budgeting, saving and how to use necessary financial tools.
• Don’t forget about your own mom! Consider checking in with your mom to see how she’s doing and whether you might be able to provide any insights or independent resources to help her streamline her financial life.
For more information about Charles Schwab, click here.