Five Things Every Mother Should Know About Her Family’s Finances

Regardless of who handles the budget in any relationship, both partners need to be aware of key aspects of their family finances. No one likes to think the worst, but as a mother, you need to be prepared to take over all of the family’s finances if your spouse were to suddenly suffer a debilitating illness or death, or if you were to separate or divorce.

College Expenses

College tuition has risen dramatically over the past twenty years. It may seem to be far in the future, but before you know it, your toddler will be heading off to college. Chances are, he will need parental financial support, unless he wants to begin his career saddled with a hefty student loan. What is your family’s college savings plan? If a plan doesn’t exist, start discussing it today.

Monthly Budget

As long as you can afford what you and your children need, and your family is able to pay the bills, you may not worry about the rest. However, you need to know basic information about your family’s income and expenses. If your family holds debt like credit cards, you need to understand how it is being paid. This information is vital if your financial situation were to change.

Savings

If you haven’t already done so, you need to discuss savings strategies and goals with your husband. How will you save for your next family vacation or new car? You should also ensure that your family has an emergency fund saved that will cover approximately three months of fixed expenses and day-to-day needs. If not, take the opportunity to discuss how you can begin saving towards an emergency fund.

Retirement

As a mother, you may be more worried about covering your family’s daily needs than saving for the future. Just like college savings, the key is to start young. If you and your husband do not have a retirement savings plan in place, you need to do so. If you are already saving for retirement make sure you understand the savings and investment plans.

Estate Planning

If you are young, estate planning may not be on your to-do list, but you can’t wait until it is too late. Discuss estate planning with your spouse and take steps to set up a will. In addition, you need to think about whom would take care of your children if you and your spouse were both deceased.

Learning about your family’s finances may not be easy, and it may not be fun, especially if you don’t like to think about those “what-ifs.” However, as a mother it is an important step you need to take to protect your family and your children from financial uncertainty. It may take a few heart-to-hearts, but start talking to your spouse about money today. Even if you disagree, keep the lines of communication open, and you will soon have a better grasp of your family’s financial situation.

About the Author

Carly Lance is employed by Personal Bankruptcy Canada, a company dedicated to helping people with bankruptcy in Canada.

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