Matthew Sheets, CFP®, details ways retirees can manage the shift into their new lifestyle.
Smart Money Moves for Moms at Every Stage
Motherhood changes everything—from your sleep schedule to your daily routine, and most importantly, your financial priorities. Whether you are preparing for your first child or managing the costs of children at college, money plays a significant role in how you plan, grow, and support your family. The good news? With the right financial decisions, moms can gain more control, reduce stress, and build a strong future for their families. Here is how to make smart money moves at every stage of motherhood.
1. New Moms: Building the Financial Foundation
- Budget for Baby – The arrival of a baby brings new expenses: diapers, daycare, medical bills, and more. Create a baby-specific budget that accounts for both one-time costs and ongoing monthly expenses.
- Start an Emergency Fund – Unexpected costs are part of parenting. Aim to build an emergency fund with 3–6 months’ worth of living expenses to protect your family in case of job loss or surprise medical bills.
- Review Insurance and Estate Plans – Now is the time to update your life insurance and name a guardian for your child. Make sure your will, health directives, and beneficiaries are all up to date.
2. Moms of Young Children: Maximizing your Income and Savings
- Evaluate Childcare Costs – Childcare can rival a mortgage in cost. Explore flexible work options if possible and open tax-advantaged accounts like Dependent Care FSAs. Some moms find it cost-effective to adjust work schedules to minimize full-time daycare, but every situation is unique to each family.
- Start Saving for College Early – College may seem far off, but starting early gives your money more time to grow. Consider opening a 529 college savings plan, which offers tax-free growth when used for qualified education expenses.
- Invest in Your Career – Whether you are returning to work or balancing a side hustle, keep your skills sharp. Continuing education, networking, and certifications can lead to better job opportunities and income.
3. Moms of Tweens and Teens – Modeling Behavior and Planning Ahead
- Teach Kids About Money – This is the perfect time to introduce your kids to smart financial habits. Give them a weekly allowance, open a savings account, and let them practice budgeting for small purchases.
- Revisit Long-Term Goals – With more clarity around your family’s lifestyle and future, review your retirement plan, homeownership goals, and college savings. Prioritize your retirement—after all, loans can help fund college, but not retirement.
- Control Lifestyle Creep – As your income increases, resist the temptation to overspend. Stick to your core values and invest in experiences, savings, and security, rather than material things.
4. Moms of Young Adults – Shifting Roles, Staying Secure
- Support Without Sacrificing – You may want to help with college, a first apartment, or even a wedding—but be cautious not to derail your own financial stability. It is okay to set boundaries while still offering support.
- Downsize or Reorganize – This might be a suitable time to reevaluate your home, car, or other big expenses. If your kids are becoming independent, you might consider downsizing or repurposing your budget for new goals like travel or business ventures.
- Update Your Financial Plan – Life changes fast. Make sure your estate plan, retirement contributions, and insurance policies reflect your current life stage and future goals.
Empowered Moms Make Confident Moves
Money does not have to be a source of stress—it can be a source of empowerment. Every mom, no matter her income or life stage, can take meaningful steps to create a more secure financial future for herself and her children. Start small, stay consistent, and seek the advice of a financial planner to help you plan for the bigger picture.
As mom and the family CFO, you are not just managing money — you are shaping your family’s future.
Contact us today to discuss these ideas and others with a financial planner.
Cleaning and Organizing … the Swedish Way
There are many organizational methods for reducing our clutter and making our spaces more efficient, tidy, and serene. There is the “One-Touch Method” which bucks procrastination in favor of putting things away immediately after use, and the “Neat Method” which employs various color-coded containers and labeling for sorting and display. The KonMari method from Japan instructs organizers to ask themselves if their items still spark joy in them, and if not, to release the belongings with gratitude. And, yet another approach has risen in popularity, this time from Sweden, known as “döstädning,” or the translated “death cleaning,” which seeks to reduce clutter and stress from an aging person’s home and life.
While it may sound severe, the idea of döstädning is actually a very thoughtful and respectful exercise for both the individual and their loved ones. Contrary to KonMari, which centers on the individual’s attachment to their possessions, this approach asks how family and survivors will feel about the items left behind after a loved one’s death. Margareta Magnussen, author of “The Gentle Art of Swedish Death Cleaning,” explains how employing döstädning can streamline an individual’s space and create a peaceful environment in which they can focus on what matters to them at that stage of life. The process of sorting and gifting belongings and communicating with family and friends about what they would like to have can often bring loved ones closer together, and may minimize the future burden on family members, allowing them to focus on grieving rather than a large clean-out project.
For those interested in the process of döstädning, professionals recommend the following:
- Tell your family about this process you are undertaking, what you hope to get out of the experience and ask them what items they would like to inherit from you.
- Start with your clothing and closets, sorting through what does and does not fit and what can be donated to charity.
- Declutter furniture, décor, and household items by room and then size, gifting functional pieces to family and friends and donating the rest.
- Address digital information and share details for important vendors such as your bank and insurance provider to your next of kin.
- Take stock of valuable jewelry and heirlooms and communicate with your insurance provider regarding appropriate coverage. Next, give some thought to who you will leave these items to and make those wishes apparent in your documents.
- Gather your paperwork and leave clear instructions regarding your will, advance health directive, power of attorney and any other related documents to your intended survivors.
While it may seem like a big undertaking, döstädning can give practitioners the chance to find memory and meaning in their possessions, as well as a sense of lightness and contentment when they let them go.
To connect with a client relationship manager, email info@vcmi.net.
Other Areas of Financial Planning: Starting a Family, Planning a Bucket List Trip, and Changing Jobs
We help clients with more than just their stock and bond portfolio and retirement planning. Watch and hear how we assist clients with planning for a family, preparing to take a bucket list trip and weighing options when considering a career change. If these are areas you would like to collaborate with a client relationship manager on, please email info@vcmi.net.
Love and Money: Communicating with your Partner
The book, “The Five Love Languages,” outlines general ways in which individuals express and experience love and affection in romantic relationships. They are Acts of Service, Quality Time, Receiving Gifts, Words of Affection and Physical Touch, and while they may not cover all kinds of communication, they can be a good shorthand to decipher yours and that of your partner. When it comes to money, it is important to notice and understand how we feel and communicate as individuals and then reflect further how that impacts our partner and finances as a couple or family. If an individual grew up in a home where money was tight and employment was unstable, finances may represent anxiety and worry. For another, a privileged upbringing where money was rarely discussed may later manifest as apathy around budgeting and savings. Financial planners and therapists tend to share the same basic tenets around relationships and money.- Understand your relationship with money and that of your partner – explore how you were both raised, what your attitudes are to daily money management and how you see your long-term future.
- Set shared goals and focus on the future – have a brainstorm session and share what you need, want and dream about and be specific. Listen to your partner share theirs and then take stock of the two. Where do you agree and where do you differ? Discuss what you are both willing to sacrifice and what you won’t go without to accomplish your goals.
- Be transparent and communicate regularly – establish an open and honest style of communication with your partner and schedule regular dates to track progress. Split the duties of tracking your spending and saving and pair the chore with a bottle of wine or pot of coffee to make it more enjoyable.
- Practice empathy and patience – learning and unlearning behavior and establishing new habits is difficult to do as an individual, let alone as a couple. It takes time and experience to learn each other’s style and track spending and saving for both. Keep in mind that it has taken your lifetime to get to where you are, and it is going to require significant work and focus to change.