“When money flows into the hands of women, who have the authority to use it, everything changes — for women, their families, and their communities.” — Melinda Gates
Last May 11 was a special day dedicated to the most important women in our lives…our mothers. From the time we were born and even when we’re already adults, our moms are our constants. They are our educators, mentors, role models, cheerleaders, motivators, counselors, etc. As most moms are the treasurers of the family, we also learned our first money lessons from them. Nowadays, as many more Filipino moms have their own income, either driven by personal aspirations or family expectations, they have become more aware and focus on attaining financial independence, which they are passing on to their children.
But while this is so, many Filipino moms continue to face significant challenges concerning financial literacy, income inequality and traditional family roles. In one survey that I came across, while 60% of Filipinas consider their financial security has improved compared to early generations, 36% experience stress from juggling family and work responsibilities. Afterall, working moms are still expected to manage the household chores and childcare. Financial literacy remains an issue, with 71% of Filipino women rating their knowledge as basic or beginner level. This limits their access to better financial opportunities. Furthermore, women are more likely to earn less than men. According to a 2022 study by the Philippine Institute for Development Studies (PIDS), women earn about 18 percent less than men in digital jobs. This stats is mirrored in other countries.
So while more Filipino moms are making strides towards financial independence, the above highlights the need for more resources and support to help them understand and navigate the financial landscape and achieve their financial goals.
As we continue with our month-long celebration of Mother’s Day, let’s help empower more Filipino moms to achieve financial independence. Here are my two-cents worth as a mom, myself.
Set your financial goals and priorities. Mothers want to achieve a lot for their family. It’s better to define and prioritize your short term and long term goals as these will serve as your compass in all your financial decisions. What do you want to achieve this year, in the next 3 years or in 5 years? Make your goals specific, measurable and time-bound. Prioritize needs over wants, essentials over non-essentials.
Have a budget and stick to it. With clear financial goals, come up with your monthly budget and stick to it. Where is your money going? As the budget keeper, make a list of your monthly recurring expenses versus the family earnings and keep track of your spendings. Be transparent with the family members about your financial situations so they can help manage it. Our children may even come up with some smart money making or saving activities. Live within your means.
Prioritize savings and investing. Always follow the formula: Income minus savings equals expenses. Immediately set aside a portion of your income for your savings even before it gets allocated to your spending. Go for auto-deduct facilities and lock-in features to avoid the temptation of either deferring or dipping into your savings. Whether you are saving and investing for your child’s college education, a major purchase, or your own retirement, discipline is the key. It doesn’t matter how much, what matters is you save/invest consistently.
Build an emergency fund. Always have savings equivalent to six months of household expenses, whether or not you and your partner share in the financial responsibilities. Having an emergency fund prepares your family for any possible income loss, giving you an allowance to find new sources of income without needing to drastically change your lifestyle. It can cover those “rainy days” without needing to beg for help.
Have additional income. With the cost of living steadily rising yearly, there is a need to increase your income. That’s why many two-income families are still doing side-hustles to up their monthly take home pay. The past years have seen the tremendous growth of online selling as second source of income among Filipino mothers. The virtual assistant phenomena have allowed mothers to work from home and have at least 2-3 income sources. While some are into investing so they can make their money work for them and earn passive income.
Get insured. One of the biggest concerns of a mother is securing and protecting the future of her children. Secure the future of your family by getting a life insurance for you and your partner. There are different insurance products that can cover the various needs of your family. Having an insurance can give you the peace of mind that whatever happens to you or your partner, your children will be taken care of and your dreams for them can still come true.
Increase Financial Literacy. Being a financially independent mom starts with being financially literate. Invest in your financial education so you can be empowered to have more choices and make informed decisions about your finances. Whether it’s by reading materials and collaterals online or seeking support from finance mentors or contracting services of industry professionals, you can access and learn all the information you need to realize your financial goals.
It’s refreshing to see more and more Filipino mothers becoming much aware, interested and focused on financial independence. But there is still a big gap to fill in terms of financial literacy. We need to give them more access to financial education and empowerment programs to help them achieve their financial goals and provide a more secured future for their families.
Afterall, the hand that rocks the cradle is the hand that rules the world.
