SAHM moms have financial value even if they are not employed outside of the home.
There are many different possible scenarios where the SAHM becomes the financial decision-maker. Don’t be one of those adults who are ignorant about financial affairs and don’t find out about the problems until 30 years later when it’s time to retire.
As a SAHM, you should get equal say in financial matters since you are also responsible if your partner runs up debt, makes bad investments, and defaults on loans or other bills.
How to get started:
- Start communicating with your partner about financial topics and monthly bills.
- Review all investments together. This includes stocks, bonds, real estate, brokerage accounts, and retirement accounts. Review the statements quarterly as they are typically distributed every three months or you may do this once a year.
- Know where all your important documents, account numbers, and passwords are stored.
- Create a budget so that SAHM can make extra purchases as needed. The SAHM feels control and mutual respect.
- Both people need to have life insurance. If the SAHM could no longer provide or help, how much would it cost to have someone care for the children, house, and family while the other person works? Be sure to speak with a licensed agent that you can tell you about the types of policies and costs.
- Keep money in each person’s name. This includes each person having their own checking, savings, or retirement account. This reduces worry and allows for extra purchases as needed. If you work, you can contribute to an IRA or a Roth IRA. If you are not employed, you can still save money for a rainy day or retirement.
- Keep at least one major credit card in each person’s name. Use it and pay it off monthly to build credit history too.
Be sure to check out our other finance videos!