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It is said that a mother is the first teacher of her child, whatever children learn first in their life is from their mother and yes, no one can deny this fact! The basics of our life, how to live with your values, what good values one must opt for and what they must ignore, all these are taught to a child from her mother.

Not only the basics of our life but also the basic financial lessons are taught to a child by her mother only! Yes, decades before, most of the mothers were housewives, and spend most of their time taking care of their family and house. At that time, they were not even aware of investments, mutual funds, or perhaps even insurance. But what they were masters of a decade before was money matters – budgeting, saving, and beating inflation.

Today many women are financially independent and they are themselves taking care of their finances and investments. When these women were enquired about their excellent financial lessons, they replied they have learned this from their mother.

This year we are observing Mother’s Day, on 9^th May 2021. On this occasion let us know from women leaders in finance, the one important money lesson they learned from their mothers.

Lesson Number 1: Build Emergency Corpus……

Managing Director of HDFC, Renu Sud Karnad, says that the most important financial lesson that she learned from her mother is also having an emergency fund prepared for your emergencies. Sharing her childhood days with her mother, she says that, her mother always believed that ‘money not spent is saved’ and she kept such amounts aside for emergency purposes.

She says that her mother would save more, rather than spend. She would go for options that include no wastage of money and always spend on her needs.  

If we take the advice of financial advisers today, the very first advice to create an emergency corpus and plan to spend n invest. The emergency fund comes in handy during COVID-19 times when there is a likelihood of a loss of jobs and incomes.

Lesson Number 2: A Budget Is Must And Spends Planned Accordingly……

Have you seen the dairy of your mother, in which she has all the records of expenditures and savings for every month? Yes, mothers have a habit of budgeting for the monthly expenses and analyzing the spending.

Siddhika Aggarwal, ‎Co-Founder of ‎SHEROES Money, sharing her mother’s story says that she remembers her mother used to maintain the diary of monthly expenses. In that diary, she would keep track of monthly grocery bills, utility bill payments, etc. She would do this exercise every month diligently.

She further says that, when she started earning and managing her finances, she was not used to maintaining her spending and saving the record, but as soon when she was hit by her credit card bills, she thought of her mother and learned the importance of preparing a budget and spending accordingly.

She further says that still she doesn’t mention a diary for her spends and saves, rather she does keep a tab on her expenses and ensure she saves a good amount of money.

So basically, it is proven that marinating a budget a record of your spending and saves a lot, especially it saves you from falling into debt.

Lesson Number 3: Fix Your Financial Goals And Invest To Achieve……

Mothers decade before were not aware of investments and returns from them, but they were aware that one should always save money for their big financial goals of life.

Karnad shares that people decade before, if they had to buy a house on home loan then have to manage accordingly in terms of how much initial amount they need to put in and balance by a home loan. Further, she says that today, buying a house without a home loan is possible, you only have to plan for it financially. Today, mutual funds allow you to start a systematic investment plan (SIP) that allows you to automate your monthly investments for reaching a target in 5, 10, or more years.  

However, one of the women’s financial leaders shares that she remembers her mother used to invest her saved money in fixed deposits for a big purchase later. Fixed deposits were the only option that people decade before favored more to keep their money as it provided safety to their capital with little return. She further says that this habit of her mother helped her learn patience, because of which today she can ride market volatility with limited impact.

The above context easily justifies the sentence that a mother is the first teacher of her child, because not only her verbal lesson help us lead our life but her financial habits also must be learned and applied in our life when it is needed.

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For any kind of query you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).