Being a mum is a full-time job. Therefore, it’s easy to overlook little financial mistakes which can cost you in the long-run. So, if you are one of those mothers who needs to be an expert in multi-tasking for the smooth running of your home, beware of common mistakes mums can make with their credit cards.
Manage your own financial profile
Between school pickups and drop offs, grocery shopping and chores, mums can forget to keep track of how much they spend on their credit cards. Managing your debt and keeping track is vital. That’s why remember to make payments before deadlines. Having a card is a privilege, don’t take it for granted. Watch where and what you spend on and assess your yearly card history. See where you can cut back and manage your financial profile.
Think about your financial stability first and then take care of the needs of others. Don’t be too kind with your card like funding a new drum set for your kid just because they had a bad week.
Furthermore, having financial literacy is important but sometimes it’s easy not to bother especially if you depend on your husband. Mums forget to pay attention to credit card interest, fees and fines as we assume our husbands will take care of it. As that might be true, understanding your plastic is necessary especially in the case of emergencies. For that reason, read your credit card statements and don’t cancel previous cards under your name just because you are married now.
Teach while you spend
The best way to teach yours kids about money is leading by example. If you are unable to manage your own credit how will you instill that in your kid’s? So next time your teen claims “mum I will pay it back next month from my allowance”, charge them a small, insignificant interest for each day they fail to make their promised payment. This way you show them, that late payments and credit takes a toll on their money.
Picking the wrong card
It’s easy to sign up for cards with great deals on interest and fees, but ask yourself if the card adds value to your daily life. If you’re responsible for household shopping, there is no point getting a great air miles card. Compare all card options, know your card benefits and save by getting one most suited to your needs. For example, cards with a cashback programs are remarkable for saving at grocery stores with returns up to 3% on your spend.