Latina Moms Take Active Role in Household Finances
We recognize the key role Latina Moms play in their families. You juggle many priorities. You are entrepreneurs growing businesses, community leaders advocating for change, and caretakers for your children, parents and spouses who all rely on you for guidance and support. Hispanic moms are the predominant savers and financial educators in their households, according to Latina Power Shift, a 2013 Nielsen Study. You place a strong emphasis on making a conscious effort to cut back on expenses, care for parents and in-laws, and involve your kids in family budgeting and college planning. A MassMutual study on the State of the American Family1 found that nearly three out of four Hispanics say that, when making financial decisions, they consider what would be best for their family — more than most other groups.
You take charge of preparing future generations and accomplish short-term financial goals like purchasing family homes and managing the family budget. In addition, a 2012 MassMutual Study2 conducted by Forbes Consulting Group, found that nearly half of Hispanic moms seek the advice of a Financial Professional for long-term financial planning. Here are some important tips to help you continue to prepare for the long-term.
Tips for a Healthy Financial Future
Teach children about finances
It’s more important than ever to set children up for financial success in the future, and maybe you are already talking to your kids about spending and what it costs to live. To foster continued financial learning, talk to them about necessary versus discretionary spending, the importance of saving, and establishing a budget. Playing family games that introduce a monetary component is a great way to build their financial foundation. In addition, include your children in conversations about family budgeting decisions or paying monthly bills to help prepare them for their future.
Protect your income
What if something happens to you or your spouse — who is going to pay the bills? This is a tough question to consider. Employment loss, injury or illness, and even death can change a family’s financial outlook very quickly. For all families, ensuring that the money comes in each month should be a priority, and disability income and life insurance may be solutions to address these needs.
Disability insurance can help you meet financial obligations if you become too sick or hurt to work — like paying electrical bills or the mortgage. If you have a group long-term disability (GLTD) insurance policy at work, it typically only covers 60 percent of income. By adding individual disability income coverage to supplement existing GLTD coverage through your employer, the additional disability benefits may help you with your financial obligations. It is important to get this in place early in the event of the unexpected.
Secure your family’s future
Life insurance helps protect your family and loved ones from the worst that can happen — the passing of a loved one. The death benefit of a life insurance policy can help cover everyday expenses. Some life insurance policies accumulate cash value. If you own such a policy, you can withdraw funds or take a loan against the policy* to help supplement your retirement income, provide funds in case of an emergency, or help with college expenses. Try our college planning calculator to think about your savings in relation to this future expense.
A Financial Professional can assist with your needs and appropriate next steps.
Think about retirement
Chances are, you’re already thinking about retirement. How do you see your life in retirement, and what are your goals? The amount of income needed to maintain a standard of living in retirement varies from family to family. Financial calculators can help you think about your current and future expenses to see if you are saving enough and a Financial Professional can listen to your financial needs and provide recommendations on future goals. When creating your plan, consider the following:
- Income: Achieving your retirement goals will require a secure income.
- Savings: Set short-term benchmarks to help you keep track of your retirement goals.
- Assets: Accumulate assets that can provide stability for today and growth for tomorrow.
- Debt: Many goals can be derailed by debt. Debt needs to be managed and taken into consideration when developing your plans.
We know how important you are to your family — keep up the great work! Continue to focus your attention and time towards improving the financial future of generations to come.