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Mom was Right:
Common Sense Financial Advice

It never hurts to go back to the basics. When we were young children, our moms provided lots of advice on good money management through simple phrases.

These tried and true "Mom-isms" may seem like plain common sense, but in today's more complex world, they still provide good direction for how to make the most of our money and avoid financial trouble.

In honor of Mother's Day this month, the National Foundation for Credit Counseling (NFCC) suggests we revisit some of Mom's wise sayings about managing money.

1. Money doesn't grow on trees

Mom wanted us to realize that there is a limit to what we can spend - a finite amount of money available to us. Keeping that in mind makes understanding the difference between wants and needs a little clearer and impresses upon us the need to make careful choices.

2. Pay yourself first

Realizing how easy it is to find things to spend money on, Mom encouraged us to establish a savings habit by making it a priority. Nowadays, we can make it easy and automatic to save through direct deposit into an account each payday.

3. Save for a rainy day

Today, we may be saving for specific goals - a car, a home, retirement, but Mom knew that the unexpected always happens. With all the uncertainties in today's world, an emergency fund account makes more sense then ever.

Don't think you can find the money? Track your spending for two weeks and you may be surprised at the "spending leaks" you'll discover.

4. Don't rob Peter to pay Paul

Paying one credit card with cash advances from another should be considered a red flag. Taking on new debt to resolve old debt should be considered carefully to make sure you have a plan to pay off the debt and are not just going in circles.

5. Don't take any wooden nickels

Mom warned us that some things just seem too good to be true and that is still the case today. There are plenty of scam artists out there ready to take advantage of us through identity theft and fraudulent schemes. Increase your consumer awareness of strategies to prevent and defend against those crimes.

"This Mother's Day, give your mom the gift of knowing you took her advice about becoming financially stable. That's a present she won't return," said Gail Cunningham, spokesperson for the NFCC.

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