The financial teachings of moms

When it comes to giving advice, moms are a great source of wisdom, so when it comes to money, their managerial skills are infallible. Taking advantage of the celebration of Mother’s Day, the second date with the highest consumption in the year by Colombians, BBVA gathered orI have made basic recommendations to improve financial health and that surely some mother has suggested them to you.

1. ‘Save that I’m not going to last a lifetime’: It is essential to save constantly and consciously, even if it is only a small percentage of income. In that sense, it is recommended to have an emergency fund for difficult times, such as an unexpected layoff.

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2. ‘He who pays what he owes, knows what he has’: It is always better to avoid unnecessary debt and adjust your lifestyle to your income, and keep in mind that loans should only be taken when there is a plan to repay them . If a debt has already been acquired, the best advice is to pay responsibly and avoid falling into arrears.

3. ‘The stick is not for spoons’: Planning expenses is essential to maintain a balanced budget and avoid spending more than you have. To do this, you can create a detailed list of monthly income and expenses. Once expenses have been identified, make sure they do not exceed income. If so, look for ways to reduce expenses or increase income.

4. ‘Money doesn’t grow on trees’: Keeping track of income and expenses is critical to making financial decisions. Making a monthly budget and keeping it updated is necessary to control money outflows, in addition to avoiding uncontrolled expenses that often put at risk meeting fixed payments.

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5. ‘Take a spin and now come back’: Before making a purchase, you should compare prices in different stores and online. Look for offers and discounts and avoid pressure to buy something that is not needed.

6. ‘A bird in the hand is better than a hundred flying’: Evaluate the risks before deciding to invest in a personal or business business. Factors like competition, changes in the industry, and financial stability are very important.

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7. ‘They don’t give so much of that so good’: Be very careful about investing in businesses that promise immediate profits and high returns that can jeopardize a lifetime’s savings or the illusion of making a little money. There are reliable financial services that will generate a good return.

Finally, BBVA’s financial health experts suggest having a plan for long-term savings, such as retirement or buying a home. Invest in safe investment options and consult a financial adviser if necessary.

The tyba financial platform says that speaking of mothers, according to the most recent National Survey of Quality of Life, carried out by DANE and published in April of this year, at the national level, 44.2% of households in Colombia acknowledge having a woman as the head of the household, which represents a new increase compared to previous years, when in 2021 the figure was 43.1% and in 2020 it was 39.8%. This data shows that, in part, more and more Colombian mothers must be prepared in financial knowledge to manage and administer the household economy, in addition to educating and including household members in them.

“This microeconomics is essential to improve the quality of life of all family members, since it is not only responsible for satisfying material and immaterial needs, such as: food, housing, clothing or education, travel and other types of leisure , but also, it is an example that allows children to understand the value that income, expenses, debts, savings and investments acquire, ”says Jose Ibarra, Chief Product Officer of tyba, the digital platform for investing , simple and reliable.

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In this sense, and seeing the importance of the role of mothers in the financial education of their children, in the short, medium and long term, the CPO of tyba recalls 4 common phrases among mothers, which today become key recommendations for a proper money management.

1. “He who sows reaps.” This saying is perfect to understand lThe importance of long-term financial planning, saving, investing, and patience. Like a good farmer, first you have to know and prepare the land, then you have to plant the seeds, water them and take care of them, so that over time the fruits come out.. Likewise, in managing money, you have to educate yourself, start saving, create financial goals, put “fertilizer” through investment and have a long-term mentality to be able to perceive the results.

2. “Money doesn’t grow on trees.” This is one of the most accurate phrases that there can be regarding the management and use of money. Many times, especially in youth, people do not realize the effort behind receiving a monetary income after having done a job. Therefore, it is essential to teach children the value of money and the alternatives that exist to generate it.

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3. “Clear beads and thick chocolate.” In order to have healthy finances, it is essential to have clarity about them. That is to say, Keep a budget where income, expenses (fixed and variable) are evidenced, what is destined for savings or investment and additional debts or financial responsibilities that you have. Having the complete financial picture will allow you to make decisions with real numbers. In addition, to plan the payment of your debts in time, to cultivate your financial tranquility.

4. “Don’t put all your eggs in one basket.” This is mom’s phrase that is currently most heard related to the financial world, since in investments it is constantly used to refer to the concept of diversification. Therefore, the teaching of this phrase is precisely to invest to give our savings the boost they need so that they have the possibility of growing. But, indisputably, do it in a diversified way, always taking into account the level of risk that each person is capable of assuming.