10 Money Lessons My Mom Taught Me (a Financial Planner’s Perspective)

As Mother's Day approaches, I find myself reflecting on the incredible women who shaped my life. Top of that list is, of course, my mom. While she may not have a fancy financial degree, her wisdom and work ethic have been the foundation of my career as a financial planner for the past 10 years.

Here are 10 money tips I learned from the amazing woman who, to this day, always balances her checkbook to the penny:

1.      Live within your means

As I have gotten older, I have realized that money was tight when I was a kid. To my mom’s credit, my sisters and I never knew this was the case. Bills were always paid on time, food was readily available, and we were one of the lucky kids to have CABLE television. You know, 30+ channels that didn’t require an antenna (my kids will never understand this!)

Additionally, we always had presents for the holidays and our birthdays, new clothes for the first day of school, and experienced vacations (road trips) that created some amazing memories.

We never went into debt to finance these luxuries and she accomplished this by working overtime and having a savings plan in place. Which leads me too…

2.      The value of a dollar

My mom, for most of her career, worked in a window manufacturing company. This job required early morning start times and long days. We never saw my mom in the morning, but she sure as heck always made sure dinner was on the table at night. Point being, she worked hard. In her line of work, there was never a shortage of available overtime hours. So, if the family needed a little extra money for an upcoming expense, she put in the hours.

Mom made sure I understood the connection between effort and reward.

3.      Pay your debts timely and in advance if you can – Credit is a Tool, Not a Toy:

Credit card debt is bad, and paying interest on that debt or even worse, late fees, was simply a waste. You might as well be lighting your cash on fire.

However, my mom understood the importance of a strong credit score. As soon as I turned 18 years old, she had me apply for a credit card. She made sure this card had a low credit limit so I couldn’t get myself into too much trouble.

Extravagant spending on the card was never the point of having the card. I had the card so I could start my credit history. My mom wanted me to get a head start on my credit score knowing how much it would benefit me in the future with future auto loan rates, insurance premiums, and eventual mortgage.

4.      NEVER carry a credit card balance.

Speaking of credit cards, upon the first bill I received from my credit card, I vividly remember seeing that credit card statement and seeing the box that said, “Minimum Payment Due”. I had purchased a baseball bat with my new credit card for around $100 and got super excited about ONLY having to pay $10 according to my credit card statement. You know, because $100 was a lot of money for an 18-year-old around that time.

So, I wrote a check out for $10.00, placed it in the envelope with the deposit receipt, and sealed the envelope.

Well… My mom, being the astute observer she was, double checked my work and saw I was only going to make the minimum payment. She didn’t hesitate to use this moment as a learning opportunity, ripping up the check I wrote in front of my face, and teaching me about the interest that was about to be charged if I didn’t pay the full amount.

5.      Save for a rainy day.

Life throws curveballs, and Mom knew that, and our family certainly wasn’t immune to the unexpected car or home repair. She emphasized the importance of building an emergency fund, a financial safety net to weather unexpected financial storms. 

An emergency fund can be a lifesaver in the event of a job loss, medical emergency, or unexpected home repair.  I advise all my clients to prioritize building an emergency fund, typically 3-6 months of living expenses, to provide peace of mind and financial stability.

6.      Invest in yourself - Work hard in school.

Throughout high school, my two older sisters and I were always very active with extra-curricular activities with sports, clubs, participating in the school marching band, and working a part-time job at a local diner. These events were our passions and participating was the way we got to hang out with our friends.

Well, the rule in our house was that school always comes first. If we didn’t have good enough grades, we weren’t allowed to participate. Not only did mom make sure our grades were good, but she was also always supportive in making sure we were trying to do better.

To this day I still have her voice in the back of my head telling me I can run an extra mile during my work out or telling me I need to read an extra 20 minutes when I’m studying for certification exams.

Mom constantly encouraged us to pursue education and skills that would allow us to build a secure future. This translated into successful careers for all three of us and the ability to help others.

Investing in yourself, whether through education, professional development, or acquiring new skills, is an investment in your future financial security.

7.      Pay off (down) your mortgage.

This lesson is debatable and complex and may not be right for everyone. Especially if you have a low mortgage rate locked in for a long period of time. But I wanted to share some appreciation for my mom’s point of view.

Mom viewed her house as more than a roof over her head. It was a place of comfort, stability, and family memories.  While some financial experts recommend maximizing returns by investing in the stock market, she prioritized peace of mind and eventually paid off her mortgage.  This decision gave her a sense of security that was important to her.

Our homes are often the largest investment of our lives. Not only from an asset standpoint, but from an emotional component as well. The thought of not being able to make payments due to a sudden job loss or medical event can cause an extreme amount of stress.

So, from my mom’s perspective, trying to earn more by investing in the stock market was not a part of her value system. Instead, what brought her the most joy was the day she paid off her mortgage securing her home from ever going away.

8.      Always have insurance... Especially health insurance.

When I was in my 20’s, I, like most men at that age, thought my body was invincible. No harm could be done to me, or if something did happen to me, I would soon recover.

Looking back now, gosh I was dumb.

Having had two kids, my own medical events, or even repairs on my home/auto, insurance is cheap compared to what Kate and I would have to pay if we had to pay out-of-pocket.

So, during my younger years when I was running around wearing my cloak of invincibility, my mom was always present as my personal risk manager making sure I was protected.

9.      Experiences matter

This is a lesson she continues to teach me today…

My mom is/never was one who bought a lot of “stuff”. Or when she did buy stuff, it was always on sale, or a coupon was involved.

My mom has always been a savvy shopper. Not because she gets some kind of adrenaline rush by finding the perfect deal, but because she knows that money saved could be put to work towards other aspects of life including but not limited to travel, concerts, shows, and exploring.

She has always been a person to maximize the (limited) vacation time she had while working. Now in retirement, it’s exciting hearing about the amazing trips she’s taken and continues to plan.

10.  Don’t make the IRS mad. File your taxes timely.

Okay, this is kind of a quirky lesson, but a lesson taught to me anyway…

Just about every February, after W-2’s are being received, my mom always asks me if I have my taxes filed.

This interaction always makes me chuckle a bit.

However, to my mom’s credit, she is the person who taught me to do my own taxes upon working my first job when I was 14. At that time when I received that first W-2, it was a simple enough return she could have quickly filed for me. Instead, used this as a teaching moment to have me call in my 1040-EZ.

I have filed my own taxes every year since and even made tax planning and preparation part of my career trajectory. If only I could go back to share that with my 14-year-old self about that inspirational moment.

These are just a few of the financial gems I learned from a woman whose financial wisdom has proven invaluable. Her lessons have shaped me not just as a financial planner, but as a son/husband/father/brother who understands the value of hard work, responsible spending, and building a secure future.

My hope is to continue passing these valuable lessons on to my own children and to the families I work with as a financial planner.  Perhaps some of these tips will resonate with readers of this blog post, inspiring them to create a stronger financial foundation for themselves and their loved ones.

Happy Mother's Day, mom. I'm incredibly grateful for everything you’ve taught me and will continue to teach.