Personal Finance

5 Money Mistakes Moms Make

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This article originally appeared on LearnVest.

Moms are renowned for their nurturing. For their kindness. For their practicality. Some are renowned for their chops at managing their family’s finances.

But no matter how awesome we are, we’re still human. And sometimes we even run out of time to think about how we handle our money.

That’s why we’ve compiled the top ten mom money mistakes you might be making. Instead of soul-searching for what you could be doing better, go ahead and nip these mistakes in the bud, then accept the peace of mind that comes with knowing you’re doing things right.

Letting Mompetition Get You Down

Even when they’re just proud of their children and the lives they’ve built, moms can often come off as competitive, trying to make sure you know their kids are successful and their lives are the best. Although feelings of jealousy and competition are perfectly normal, don’t let those emotions bring down your finances.

If another mom brags about the nice things she buys for her children, or the expensive summer camp or private school she sends them to, say, “That must be nice!” and then change the conversation. You should make your choices because you want to and they’re what’s right for your family—not because someone else has pressured you into them.

Here’s more on dealing with “mompetition.”

Going Overboard for Birthday Parties

Birthday parties can also quickly become a competition between families, and a point of pressure from kids whose friends are having elaborate birthdays. That’s called “party creep,” a phenomenon in which birthday parties seem to spin more and more out of control. We’ve even heard of kids’ parties that give away American Girl dolls as party favors! (For a little gawk factor, check out these seven ridiculous birthday parties.)

Don’t become a victim of peer (or child) pressure. Learn what you need to know about kid birthday party etiquette, and then make your own special mark on your child’s birthday party with creative, but inexpensive, ideas. Here are some birthday party themes to get you started—all for under $7 per guest—and cute DIY birthday cake ideas.

Skipping Life Insurance

As a mom, you simply can’t go without life insurance. Although it’s never pleasant to think about worst case scenarios, life insurance will protect your family should something happen to you. It will ensure that your loved ones have enough money to maintain their lifestyle, pay off any debts you leave behind and more. We’ve got you covered with everything you need to know about life insurance.

Being Too Nice

We all want our children to be happy, but spoiling our kids doesn’t do them, or us, any good. Between temper tantrums and children who grow up expecting everything to be handed to them on a silver platter, our attempts to give our kids everything they want can actually be doing more harm than good.

Check out our signs that your kid is spoiled, and what to do about it.

Getting Allowance Wrong

Allowance is a great tool to teach your children financial responsibility, but only if you do it right. In our LV Moms’ Money Mic series, we spoke to one expert who thinks most allowance systems do more harm than good. Read his essay for why, and check out our interview with an allowance expert, who explained how to do allowance right.

For another five money mistakes moms make, click here to view the rest of the LearnVest slideshow.

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Image: ezola, via Flickr

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