Recently, I acknowledged that the relationship women have with their purses and their personal finances is heavily linked. One of my co-workers use to tell me, “Never put your purse on the floor because it will keep your money low.” The superstition itself makes little sense but taking pride and knowing what is going on in your purse does.
When you open your purse, is your money neatly put away into a spot where you can find it? Do you grab any purse that you can find or do you find the best option to compliment what you are wearing?
“More than one-third of American adults (37 percent) admit that they do not know their credit score.”*(Source: National Foundation for Credit Counseling, 2009 Financial Literacy Survey, April 2009). Not knowing your credit score is like, not knowing where your money is. By keeping a close eye on your score, you could save hundreds and thousands of dollars.
Shopping around for the best options for where to invest your money, the best way for you to pay your bills, and where you bank and open checking and credit cards is very important, just as important as choosing the right purse.
Only a few years ago cash ruled, now it seems that people believe that credit cards reign. Layaways were done away with by many stores, credit card companies were almost handing out plastic cards regardless of credit history. Now that the story has changed. Layaway are reopening and we see how buying without currency to back up our spending can hurt the world’s economy. We saw big corporations go bankrupt and even some banks default and close-down. Thus, credit card companies have developed more rigid rules, and learning about personal finance is becoming more popular. However, everyday citizens continue to pay the price with plastic cards and empty bank accounts. They are swiping blindly only to end up deep in debt and on the brink of bankruptcy and foreclosure.
What does this mean to us moms? It means us, moms, have to take back our purses and start using our cash to regulate our spending habits. It is time for us to get up and personal with our finances.
What is personal finance?
Investopedia.com defines it as all financial decisions and activities made by an individual. So it is anything that you do in relation to your money. You should know exactly what is coming in and what is going out. Their should be plans in place to help you maintain your lifestyle if an emergency was to occur.
I remember graduating from high school and receiving checks as a gift, but if the banks were not close by, I wasn’t able to cash them because I didn’t have an account. Some people feel that checks are almost archaic now, but just as layaway has returned our need to pay with checks may also return; especially, now that it is getting harder for people to obtain credit cards. As a result, I believe we should be teaching our children how to balance a check book and know how to write checks if the time arises. It is imperative for the learn the value behind owning a checking account and understanding how bills are paid. It is also important for us to see our money when we go into stores so that we won’t overspend.
What’s the Plan?
In order to get our purses in order and help the next generation we need to be able to answer the next 10 questions.
1. Do we as a family have a working budget? Do we plan to stick to it and review it often?
2. Have we considered the benefits of having a check card?
3. Do we plan to get out of debt and / stay out of debt?
4. Do we know the rules of investing at a level comfortable for us and our family’s money?
5. Do we know how to find a good financial adviser and evaluate personal areas of improvement?
6. Are we willing to follow good advice?
7. Do we have a plan in place for when our income stops and we are older?
8. Do we know when and how to say, “No;” especially to purchasing unnecessary items?
9. Do we know how to get our money to start making money for us?
10. Lastly, do we have a positive attitude towards our finances?
Start financial planning today!
Excellent compilation of personal finance resources: