Hey, I’m just the messenger.
Personally, I think most moms rock at finances, but according to the gurus at LearnVest (a personal finance website for women), most women with kids fall short when it comes to making wise financial decisions.
And why do the brainiacs at LearnVest think moms stink when it comes to handling money?
We’re. Too. Nice.
Apparently, sugar and spice and everything nice is a very bad combo when it comes to money.
LearnVest experts claim that because moms are “too nice” and “too nurturing” they end of falling into an abyss of money problems.
Competition is a huge factor in this, according to LearnVest.
See if you can relate to this scenario: You’re hosting or attending a playdate and one of the kids has a toy your child can’t live without. In an effort to placate your offspring, you rush out to the store and buy the item for him so he doesn’t have a meltdown or feel left out.
LearnVest experts theorize that this type of behavior typically continues for years and soon moms are giving into their teen’s begging for expensive jeans, the latest smartphone, or blinged out prom dress that “all the other kids have.” The same goes for shelling out to give your child a better birthday party than his peers. Unfortunately, when you allow competition to get the best of you, the household budget typically takes a hit in the process.
Another example of most moms’ poor financial decision-making is neglecting to save for retirement, but paying for their kids’ college tuition.
Again, guilt is a driving force behind this money-related mistake.
Financial experts say that moms should not feel guilty for socking away money for retirement.
If you still feel bad about saving money for yourself and not helping fund your child’s education, consider this: You can always take out student loans, but there’s no such thing as a retirement loan.
How are you at handling money?