Have you ever stopped to think about where your earliest lessons in money management came from? While we often seek financial education from external sources, the most impactful teachings often originate right at home, courtesy: our mothers.
Our growing up years are filled with images of a small piggy bank, mom’s old purse with a mix of five and ten rupee notes that came as change from grocery shopping and the beginning of the month family budgeting meetings over tea. These seemingly ordinary moments hold the key to profound financial wisdom that shapes our financial attitudes and behaviours.
As Mother’s Day approaches, I find myself reflecting on the basic yet essential financial lessons I learned from my mom. These lessons weren’t part of a formal curriculum but were woven into our daily lives, guiding my approach to money and setting the foundation for financial independence.
Here are a few of those fundamental lessons I’ve learnt from my mother that would resonate with anyone raised in an Indian household.
Learning through practical examples
One of the earliest money lessons I learned from my mother was the importance of distinguishing between needs and wants. I remember accompanying her on grocery trips, and she would carefully compare prices and prioritise essential items. She’d explain, “We buy what we need first, and if there’s extra, we can consider treats.” This lesson has stayed with me as an adult, helping me differentiate between necessary expenses and discretionary purchases, ultimately contributing to smarter financial choices.
Also, watching my parents save together and pool their resources taught me the value of teamwork in achieving financial goals and the importance of a corpus fund, especially in a dual-income household.
The power of consistent saving
Like many Indian mothers, my mom too gave me a small piggy bank and encouraged me to deposit any spare change I received. Over time, the coins accumulated, and she’d help me count them. This experience, shared by countless mothers across India, instilled a habit of consistent saving that I carry with me to this day and will definitely inculcate in my children.
However, for my children I will add how they can also invest their money and make it grow. Educating kids on money management is critical from day one, just as important as other parts of their value system.
Setting financial goals
When I expressed interest in a new bicycle, my mom seized the opportunity to teach me about setting goals. Together, we created a savings plan—I would contribute a portion of my weekly allowance towards the bike and for every deposit she would pay some interest. This experience taught me the satisfaction of working towards a goal and reinforced the idea of planning for future expenses. This indicates the importance of how financial literacy needs to be inculcated from a very young age in children.
Understanding debt and credit
As I entered my teenage years, my mom introduced me to the concept of responsible credit use. She explained how credit cards worked using a relatable analogy: “Think of it like borrowing a book from the library—you borrow, enjoy, and return on time to avoid fees.” This analogy demystified credit for me and emphasised the importance of managing debt responsibly.
Embracing financial independence
As I approached adulthood, my mother encouraged me to take ownership of my finances. She helped me open a bank account and taught me how to manage it independently. This early exposure to financial independence instilled confidence in managing my own money and making informed financial decisions.
Let’s take a moment to appreciate the impact of maternal money wisdom. Our mothers have equipped us with invaluable skills that go beyond balancing budgets—they’ve instilled values of diligence, resilience, and financial independence. As we honour them on this special day, let’s carry forward their legacy by applying these lessons in our own financial journeys.
Here’s to the incredible women who inspire us to be financially savvy, independent, and empowered. Happy Mother’s Day to all the moms who teach us life’s most important lessons, right from the heart of our homes.
Sonali Jindal, COO & Co-Founder – RING
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Published: 11 May 2024, 11:23 AM IST