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- Personal Account: Danielli, Part I
- The Fashionomics of Retail Begging
- 6 Steps to Better Pay
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- End the Superwoman Syndrome
- Rx for a Bloated Budget
- Create Other Income Streams
- Stop Wasting Time on Things That Will Never Make You Money
- The High Cost of Part-Time Work (+ working mom poll)
- Your (New & Improved?) Credit Card
- Prep for More Pay
- On Becoming a Financial Grown-up
- Challenge: Wear Just Six Things
- Personal Account: Gabrielle's Reflection on Worth
- Smash Student Loan Debt
SAHM Money Matters
By Erica Sandberg Wednesday March 03, 2010
Erica Sandberg is a credit expert and columnist for Creditcards.com. She is also the author of "Expecting Money: The Essential Financial Plan for New and Growing Families."
All moms are working moms. Though you may not be bringing home a paycheck, it’s still up to YOU to protect your financial security.
Remember: About half of all marriages end in divorce—and divorce is the number one cause of women ending up in poverty. Protect yourself by avoiding these common mistakes:
Bad move: Shorting your retirement funds. By suspending contributions to a company-sponsored retirement plan, even for a few years, your funds could dip—perilously. Worse, your social security benefits may also decrease, since your payout is contingent on your working years.
Smart move: Open an IRA. Whether a spousal, traditional or Roth IRA is right for you depends on many factors, but socking away cash for when you've stepped out of the workforce is essential. You probably aren't covered by your spouse's plan. Choose a retirement account, then resume contributions.
Bad move: You're still in dual-income mode. Though your household wages may be halved, your housing and other costs are probably the same—and you may be spending as if you still had two paychecks.
Smart move: Create an updated budget. Tally your current expenses (include savings) and subtract from your total income. Pare down spending until you come out even. Don’t do this alone, by the way—this is a couples task.
Bad move: Forgoing financial control. When some women stop bringing in the cash, they forfeit their rights as economic equals in the household. Worse, they imagine their husbands are taking care of things.
Smart move: Keep abreast of money matters. Gain access to all banking and investment accounts, including passwords and usernames. Discuss your budget and goals with your spouse. At least annually, review both your credit report and his. If something terrible was to happen to your spouse—today—you should feel confident that you could manage on your own.
If you're a stay-at-home mom, let us know how you stay in control of your financial life.
Erica Sandberg is a credit expert and columnist for Creditcards.com. She is also the author of "Expecting Money: The Essential Financial Plan for New and Growing Families."
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Written by Victoria, March 03, 2010
Hi! What I've done is open a separate account, just in my name (checking and savings) just in case... My husband has left and come back a few times, so I really had no choice but to do this. Then whatever is saved, I split it between these two accounts (he never looks and if he did, I could easily switch money into the account and back online). Any guilt I have felt over this has been dissipated by necessity. And if all is well, the money will be for all of us... I've also opened the type of savings accounts that they round up the change from all your card purchases. Every penny counts! :) I am also a photographer and writer, and my kids are 13, 6 and 3 now, so I do what I can to make extra money, and I also have a book that was just published. You can see it at www.myspace.com/rockstarsofthe80sand90s, and I have more coming. I wanted to make sure that I have money coming in, while home with my kids- cause we are also unschoolers. We both have life insurance on us, but he has more through his employer. I'm thinking of getting more somewhere else. And probably will. I always make sure I keep a little extra after that bills each week too, just in case... We've been caught too many times without anything, but not for a long time now. I'm also on freecycle.org- to give and receive, and that helps tremendously. I get alot of stuff we need for free, and give away as much as I can also. I've got more in the works and more planned for our future, but these are the basics... and of course I got our bills down as much as I could while not being without anything... Oh, and I also agent for a musician- www.myspace.com/petemunroe- if you want to give him a listen. :D Blessings! ~Victoria
Written by Regina, March 03, 2010
I wish I would have had this info years ago, though I doubt I would have listened to it. I'm in the "poverty" situation now. I was a stay-at-home mother for 9 years before my "hubby" and I separated. Now, I'm having to handle my household on my own. We lost our apt, and we're living with a friend. The only help I'm getting is child support, and I'm struggling to get the kids and I into a better living situation.
Written by Suzanne, March 03, 2010
Becoming a SAHM finally gave me the time and mindspace to pay attention to finances! (Working crazy hours full time, I just left it to my husband.) Being with young children all day, I crazed things that made my brain think. Here's some of what I tackled:
* Got new quotes on house/auto insurance - save hundreds of dollars
* Created a price book where I noted down the price of groceries over several months at the different grocery stores near me. Learned which stores consistently have the best prices on different products, learned what was a good sales price and when to buy in bulk to lock in the savings.
* Bought a large freezer for our garage to store all the bargain food!
* Starting reading personal finance blogs, personal finance books (from the library!) and just generally getting educated.
* Tracked our spending for a year so could understand where our money was going and look for savings
* Switched our credit cards from earning frequent flyer points to earning cash back. Use a combo of American Express Blue and Chase Freedom. Cold hard cash has the most value these days. Can use towards flights to relatives when we need it but now we have a choice of airline and airfares.
* Have regular financial discussions with my husband. Here's our net worth, here's how much we need in our emergency fund before we can buy you your new raft (done but he had to wait an extra two years before buying the raft - whitewater rafting is his passion)
* Opened up a SEP IRA for my husband (he's self employed)and started regular contributions
* Investigated my 401(K) and decided to roll it over from my old company to a Vanguard Target Retirement Fund. Lower fees and I like the idea of a fund that adjusts automatically with your age.
* Bought life insurance for me (I used to be covered by my old employer). A common mistake is to think you don't need any if you are a SAHM, but what is going to help pay someone to do all the stuff you have been doing, plus what about your future earnings as the kids get older and you go back to work (if that's your plan)?
There's a lot you can do, both big and small. The number one thing you can do is start getting smarter and by reading this blog, you're already on the way.
* Got new quotes on house/auto insurance - save hundreds of dollars
* Created a price book where I noted down the price of groceries over several months at the different grocery stores near me. Learned which stores consistently have the best prices on different products, learned what was a good sales price and when to buy in bulk to lock in the savings.
* Bought a large freezer for our garage to store all the bargain food!
* Starting reading personal finance blogs, personal finance books (from the library!) and just generally getting educated.
* Tracked our spending for a year so could understand where our money was going and look for savings
* Switched our credit cards from earning frequent flyer points to earning cash back. Use a combo of American Express Blue and Chase Freedom. Cold hard cash has the most value these days. Can use towards flights to relatives when we need it but now we have a choice of airline and airfares.
* Have regular financial discussions with my husband. Here's our net worth, here's how much we need in our emergency fund before we can buy you your new raft (done but he had to wait an extra two years before buying the raft - whitewater rafting is his passion)
* Opened up a SEP IRA for my husband (he's self employed)and started regular contributions
* Investigated my 401(K) and decided to roll it over from my old company to a Vanguard Target Retirement Fund. Lower fees and I like the idea of a fund that adjusts automatically with your age.
* Bought life insurance for me (I used to be covered by my old employer). A common mistake is to think you don't need any if you are a SAHM, but what is going to help pay someone to do all the stuff you have been doing, plus what about your future earnings as the kids get older and you go back to work (if that's your plan)?
There's a lot you can do, both big and small. The number one thing you can do is start getting smarter and by reading this blog, you're already on the way.
Written by Jessica, March 03, 2010
What about the women who are the sole financial support for their families and still the housekeeper, cook, errand runner, activity director? Nearly every woman I know is in the same situation. I don't know any women who have husbands who support them. I can't even imagine having my husband do any of it. He won't help at all! Any advice for us?
Written by Kenia, March 03, 2010
I think this is such a great article. I hear about too many women who forfeit there financial positions in a relationship, and then end up in the dust. It's not just a good idea for yourself, but seeing as women typically get custody of children after a divorce, looking out for yourself financially is in the best interest for your kids too. And even when you're lucky to be in a great and trusting relationship, where you are partners together on financial issues, if you take care of yourself you're taking care of BOTH your futures! I think it's win-win for everyone.
@ Suzanne - Your story is so inspiring! I don't hear about to many SAHMs who take an active role in the family's financial situation. What you've done sounds incredible! I hope that more women take notice and do the same. :)
Some women don't plan to return to their careers, and I think that's absolutely great if you've decided it's what's best for you and your family. But for those SAHMs who want to return to their careers, I've gotten tips from a couple successful female coworkers who've 'been there, done that' with the whole popping-in-and-out-of-the-career-because-of-family-thing, and some good advice I got from them was to A) Before going on leave, carve out a niche and create value for yourself in the company by taking ownership of specific things (Brand yourself, if you will), and B) Once you do become a SAHM, stay involved in the field somehow - even if you're not working. Read trade magazines, go to professional conventions, network, be an active member in professional societies, maintain your skills by taking classes at a local college, etc. These are all things (that won't take up the same amount of time as actually having a full-time job) that can keep women in the loop in their industries & remain valuable assets to their companies, so when they do go back to their careers they won't be as financially 'penalized' for taking the time out to be a mom. I'm not sure if it's true, but my theory is that by staying active in that way, the potential income loss over the course of one's career, due to being a temporary SAHM, (which I believe is estimated at about $500,000 right now) might be reduced (Although I doubt you can recover all the income loss experienced, I think staying active in these various ways will help to bridge the gap).
@ Suzanne - Your story is so inspiring! I don't hear about to many SAHMs who take an active role in the family's financial situation. What you've done sounds incredible! I hope that more women take notice and do the same. :)
Some women don't plan to return to their careers, and I think that's absolutely great if you've decided it's what's best for you and your family. But for those SAHMs who want to return to their careers, I've gotten tips from a couple successful female coworkers who've 'been there, done that' with the whole popping-in-and-out-of-the-career-because-of-family-thing, and some good advice I got from them was to A) Before going on leave, carve out a niche and create value for yourself in the company by taking ownership of specific things (Brand yourself, if you will), and B) Once you do become a SAHM, stay involved in the field somehow - even if you're not working. Read trade magazines, go to professional conventions, network, be an active member in professional societies, maintain your skills by taking classes at a local college, etc. These are all things (that won't take up the same amount of time as actually having a full-time job) that can keep women in the loop in their industries & remain valuable assets to their companies, so when they do go back to their careers they won't be as financially 'penalized' for taking the time out to be a mom. I'm not sure if it's true, but my theory is that by staying active in that way, the potential income loss over the course of one's career, due to being a temporary SAHM, (which I believe is estimated at about $500,000 right now) might be reduced (Although I doubt you can recover all the income loss experienced, I think staying active in these various ways will help to bridge the gap).
Written by Tiffany, March 03, 2010
I used to be the main provider of our income until we had our daughter 7 months ago. Since then my husband has taken on that role but with some bumps. He has a technology fetish and eats out often, spending more than he realizes. He used to think that we could make up the money later. So I devised a plan that would let him realize his mistakes - on his own of course (so he wouldn't say I was nagging) - while not letting us get into financial trouble.
Needless to say, he realized his spending habits and we opened a joint checking account specifically for bills. Now I know exactly where the money is going and how much we have left as well as a little spending money set aside for myself.
Needless to say, he realized his spending habits and we opened a joint checking account specifically for bills. Now I know exactly where the money is going and how much we have left as well as a little spending money set aside for myself.
Written by Jennifer, March 03, 2010
This article was a really great one. Like Suzanne, Becoming a SAHM has really given me the motivation to be on top of our finances. My staying at home has forced us to pin down a budget and stick to it. Of course, having a little one is a GREAT deterrent to those wonderful nights out in the old days...
Written by patty , March 04, 2010
assuming the husband is taking care of things is a big no-no. i did that thru the AIG fiasco and never will again. my husband tried to cash in an account to pay our sons tuition bill. when he mentioned not getting the check in a timely manner, i suggested that they probably didnt have any money left! he had no clue what i was talking about. i was in disbelief...as much tv as he watches he must have heard something! so, about 8 weeks and many phone calls later, the check was received. you need to protect yourself, stay at home moms need to be even more vigilant. and you dont need to be a financial wizard...if you can add and subtract you can see what goes on.
Written by dreamcatcher, March 04, 2010
Jessica, I was one of those parents who was in that situation, I am a survivor of abuse. I had only $20.00 dollars given to me for 2 weeks. If me or my children were in need of things, I had to beg him to get it, even though he had over $2000.00 in the bank.
enough of that.
any way what I am gonna tell you is what I did to make things last until I could buy more stuff in the next two weeks or make my items last longer. It is not the best but it works, and a lot of items in your house are very high in concentrate, and can be diluted. For example, your shampoo, and conditioner(you have to shake your conditioner every time you use it though). Your dish soap can have water added to it also, I usually use half and half to make it last longer.
Also for my children to make there clothes last longer and to use less laundry soap, I would make them wear there clothes twice a week, before washing them. I would iron them if they were wrinkled, and if they didn't have any stains on them from the last time they wore them. Of course if there was any odor I wouldn't let them wear it again. Underwear and socks were only wore once.
Mending clothes is a good way to make things last longer.
I went to a lot of yard sales and thrift stores, now the prices are so high at thrift stores you can almost go to a cheap store and buy the same thing new for less. But there are still some thrift stores out there that are still cheaper than the reg. stores. So just search.
If you live in a city the bus is a great way to save.
Don't be ashamed to ask family and friends for help.
Sometimes we are lucky and have men who are supportive, and loving. I am now, but if you are the sole bread winner in your family you are a very strong woman and should be given an award for the sacrifice you make for your family. Lots of situations are different, and not all of them abuse. Sometimes the man in your life can be injured and unable to work. A lot of unfortunate events can take place. But just know that Jessica you have an admirer. It takes a lot to be a stay at home mom.
Also to make extra bucks for myself I would go and sell food at our local market. Or make items at home and sell them if you have a gift like that.
just some suggestions.
Good luck and best wishes to you jessica.
enough of that.
any way what I am gonna tell you is what I did to make things last until I could buy more stuff in the next two weeks or make my items last longer. It is not the best but it works, and a lot of items in your house are very high in concentrate, and can be diluted. For example, your shampoo, and conditioner(you have to shake your conditioner every time you use it though). Your dish soap can have water added to it also, I usually use half and half to make it last longer.
Also for my children to make there clothes last longer and to use less laundry soap, I would make them wear there clothes twice a week, before washing them. I would iron them if they were wrinkled, and if they didn't have any stains on them from the last time they wore them. Of course if there was any odor I wouldn't let them wear it again. Underwear and socks were only wore once.
Mending clothes is a good way to make things last longer.
I went to a lot of yard sales and thrift stores, now the prices are so high at thrift stores you can almost go to a cheap store and buy the same thing new for less. But there are still some thrift stores out there that are still cheaper than the reg. stores. So just search.
If you live in a city the bus is a great way to save.
Don't be ashamed to ask family and friends for help.
Sometimes we are lucky and have men who are supportive, and loving. I am now, but if you are the sole bread winner in your family you are a very strong woman and should be given an award for the sacrifice you make for your family. Lots of situations are different, and not all of them abuse. Sometimes the man in your life can be injured and unable to work. A lot of unfortunate events can take place. But just know that Jessica you have an admirer. It takes a lot to be a stay at home mom.
Also to make extra bucks for myself I would go and sell food at our local market. Or make items at home and sell them if you have a gift like that.
just some suggestions.
Good luck and best wishes to you jessica.
Written by dreamcatcher, March 04, 2010
Jessica, I was one of those parents who was in that situation, I am a survivor of abuse. I had only $20.00 dollars given to me for 2 weeks. If me or my children were in need of things, I had to beg him to get it, even though he had over $2000.00 in the bank.
enough of that.
any way what I am gonna tell you is what I did to make things last until I could buy more stuff in the next two weeks or make my items last longer. It is not the best but it works, and a lot of items in your house are very high in concentrate, and can be diluted. For example, your shampoo, and conditioner(you have to shake your conditioner every time you use it though). Your dish soap can have water added to it also, I usually use half and half to make it last longer.
Also for my children to make there clothes last longer and to use less laundry soap, I would make them wear there clothes twice a week, before washing them. I would iron them if they were wrinkled, and if they didn't have any stains on them from the last time they wore them. Of course if there was any odor I wouldn't let them wear it again. Underwear and socks were only wore once.
Mending clothes is a good way to make things last longer.
I went to a lot of yard sales and thrift stores, now the prices are so high at thrift stores you can almost go to a cheap store and buy the same thing new for less. But there are still some thrift stores out there that are still cheaper than the reg. stores. So just search.
If you live in a city the bus is a great way to save.
Don't be ashamed to ask family and friends for help.
Sometimes we are lucky and have men who are supportive, and loving. I am now, but if you are the sole bread winner in your family you are a very strong woman and should be given an award for the sacrifice you make for your family. Lots of situations are different, and not all of them abuse. Sometimes the man in your life can be injured and unable to work. A lot of unfortunate events can take place. But just know that Jessica you have an admirer. It takes a lot to be a stay at home mom.
Also to make extra bucks for myself I would go and sell food at our local market. Or make items at home and sell them if you have a gift like that.
just some suggestions.
Good luck and best wishes to you jessica.
enough of that.
any way what I am gonna tell you is what I did to make things last until I could buy more stuff in the next two weeks or make my items last longer. It is not the best but it works, and a lot of items in your house are very high in concentrate, and can be diluted. For example, your shampoo, and conditioner(you have to shake your conditioner every time you use it though). Your dish soap can have water added to it also, I usually use half and half to make it last longer.
Also for my children to make there clothes last longer and to use less laundry soap, I would make them wear there clothes twice a week, before washing them. I would iron them if they were wrinkled, and if they didn't have any stains on them from the last time they wore them. Of course if there was any odor I wouldn't let them wear it again. Underwear and socks were only wore once.
Mending clothes is a good way to make things last longer.
I went to a lot of yard sales and thrift stores, now the prices are so high at thrift stores you can almost go to a cheap store and buy the same thing new for less. But there are still some thrift stores out there that are still cheaper than the reg. stores. So just search.
If you live in a city the bus is a great way to save.
Don't be ashamed to ask family and friends for help.
Sometimes we are lucky and have men who are supportive, and loving. I am now, but if you are the sole bread winner in your family you are a very strong woman and should be given an award for the sacrifice you make for your family. Lots of situations are different, and not all of them abuse. Sometimes the man in your life can be injured and unable to work. A lot of unfortunate events can take place. But just know that Jessica you have an admirer. It takes a lot to be a stay at home mom.
Also to make extra bucks for myself I would go and sell food at our local market. Or make items at home and sell them if you have a gift like that.
just some suggestions.
Good luck and best wishes to you jessica.
Written by dreamcatcher, March 04, 2010
P.S.
Great article, I am no longer a SAHM, but this still is something that I can use, because I am the sole breadwinner of my household. Thank you.
Suzanne you are an inspiration to me and I hope I can follow your example and take charge of my finances.
Great article, I am no longer a SAHM, but this still is something that I can use, because I am the sole breadwinner of my household. Thank you.
Suzanne you are an inspiration to me and I hope I can follow your example and take charge of my finances.
Written by Carol, March 04, 2010
Great and smart article. I was a SAHM for 12 years, worked for most of my career for my husband. Needless to say this put me in a very vulnerable position when he left for another woman. Good riddens is easy to say but beginning a career at 40 isn't! Fortunately he was great with the money and I will be fine. I have been educating myself quickly and this blog is part of the effort. For years he succeeded in making me feel insecure and inferior to his earning and investing power. Yes, he was smart but I can learn. There is no shame in that.
Money is often used for control in relationships. True partnership does not allow for this to happen. I now see that transparency, honesty and communication in all financial issues are a necessary foundation for a healthy marriage and hope more women will learn this before getting in.
I see things are the opposite in some houses with the woman earning and still doing the "second shift." because the man is unwilling? Is this what equality earned us as women?
@Suzanne, it sounds like you are extremely smart and capable - all on your own. So what was your husband doing to handle the family finances while they were in his hands? Good thing you stopped working to take care of the children full time and devote some attention to it - you are still doing two jobs in my opinion. If you are trying to help your hubby delay gratification for the sake of your child's future, aren't you just babysitting him? I'm not judging, just wondering.
I keep saying they should teach personal finance in high school. For the life of me I don't know why this doesn't happen and for this essential piece of knowledge about how to get along in the world we are left to put it together over a long time like a puzzle.
Money is often used for control in relationships. True partnership does not allow for this to happen. I now see that transparency, honesty and communication in all financial issues are a necessary foundation for a healthy marriage and hope more women will learn this before getting in.
I see things are the opposite in some houses with the woman earning and still doing the "second shift." because the man is unwilling? Is this what equality earned us as women?
@Suzanne, it sounds like you are extremely smart and capable - all on your own. So what was your husband doing to handle the family finances while they were in his hands? Good thing you stopped working to take care of the children full time and devote some attention to it - you are still doing two jobs in my opinion. If you are trying to help your hubby delay gratification for the sake of your child's future, aren't you just babysitting him? I'm not judging, just wondering.
I keep saying they should teach personal finance in high school. For the life of me I don't know why this doesn't happen and for this essential piece of knowledge about how to get along in the world we are left to put it together over a long time like a puzzle.
