7 Financial Lessons You Can Learn From Your Mother

7 Financial Lessons You Can Learn From Your Mother

12 May, 2023

Our mothers have been skilfully managing household finances behind-the-scenes for years. They may have endured financial hardships and yet managed to stay strong and fulfil all our demands. This Mother’s Day let’s honour our mothers by remembering the financial lessons they’ve taught us.

Seven financial lessons you can learn from your mother

For this Mother’s Day, we have put together seven financial lessons to learn from a mother.

  1. Creating a budget

Your mother puts together a monthly budget for your household diligently. With this budget, your mother ensures that the current finances can adequately meet everyone’s needs. When it is time for you to manage your personal finance, formulating a budget can be beneficial. A budget is a spending plan wherein you take into account your existing and future income and expenses. Mapping out your expenses beforehand can help you save for the future and reduce the risk of overspending.

  1. Saving for rainy days

Saving for emergencies is one of the most important saving tips this Mother’s Day that you should inculcate in your daily life. You never know when you’ll be strapped for cash. A conventional but proven way you can build an emergency fund is by investing in a Fixed Deposit. You can deposit surplus funds in a high-interest-generating account for a fixed tenure. In the event of an emergency, you can prematurely close the FD. Alternatively, you can continue earning interest on your FD and still take care of emergencies with an overdraft facility.

  1. Setting financial goals

Managing money can be overwhelming when you don’t have a financial goal in place. When you have an objective in mind, you can efficiently achieve that goal. Your financial goals could be anywhere from closing debts, building a retirement fund, or saving to buy a gadget next month. Your mother could buy whatever you or your siblings desired by setting goals and steadily saving for those goals. Financial goals will help you build savings habits which will give you better control over your expenditure.

  1. Spending money wisely

Spending your money smartly in today’s economy is an important money lesson for Mother’s Day that you should implement in your life. For instance, when you use a Credit Card to pay for expenses, you typically earn reward points that can be converted into vouchers or even cash. These perks can help you save more money in the long run. Credit Cards also come with attractive discounts when you shop at select merchants, be it online or offline.

  1. Saving a small amount regularly

Your mother may consistently save smaller amounts in a secure location, but it has served her well on numerous occasions. Similarly, you too can turn small investments into corpus, with time. For instance, with a Recurring Deposit (RD), you can save smaller amounts on a monthly basis in a deposit account for a fixed tenure while also earning interest. RDs offer a pocket-friendly way to invest and meet your financial goals. Generally low minimum investments, flexible tenures, and assured returns make RDs a convenient savings instrument.

  1. Staying calm during difficult times

You will find that your mother is the calmest individual during a crisis. She is able to make sound decisions to overcome the situation at hand. Similarly, you too will face financial difficulties in your personal finance management journey. When this happens, you must remember to stay composed and map a plan to help you deal with any crisis that comes your way. You can easily deal with financial crises by pledging your term deposits for an overdraft facility or getting a short-term Personal Loan or Gold Loan, etc.

  1. Investing in different avenues

Your mother has most likely encouraged you to invest in gold. While her intent is to equip you with resources to help you deal with emergencies, gold investments can help you with portfolio diversification. Additionally. you can diversify your investments with Mutual Funds and build wealth through lumpsum investments. You can also systematically invest in a multitude of Mutual Funds at uniform intervals via a Systematic Investment Plan (SIP).

Become financially independent with HDFC Bank

One of the most important financial lessons you can learn from your mother is that of financial independence. At HDFC Bank, we equip you with the tools to make you financially resourceful like your mother. Invest in our lucrative Fixed Deposit and Recurring Deposit and save towards a contingency fund. Our wide array of Credit Cards offers exclusive features and offers on dining, shopping, travel, and more. Also, log into the MyCards portal to manage your Credit Card expenses instantly.

Existing HDFC Bank customers can open a Fixed Deposit by clicking here. You can also open a Fixed Deposit through NetBanking by clicking here.

Did you know you can partially withdraw funds from your Fixed Deposit? Click here to read more!

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.

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