This is a sponsored conversation written by me on behalf of Our Life Covered. The opinions and text were created by me and reflect my beliefs. This article is for informational purposes only and not intended to provide any specific financial advice.
5 Financial Moves Every Young Mom Should Consider Making
When I became a young mom only a few days after my 22nd birthday, I had two major thoughts rushing through my postpartum brain: Oh my gosh, I’ve given birth to the most beautiful baby ever!! and Oh my gosh, how on earth am I going to pay for this??!
Needless to say, becoming a parent, especially at a young age, can be a little overwhelming. And when it feels like you just learned how to write a real check (yes, people still use those!), being responsible for a whole new person’s financial future can be even more intimidating. Luckily, Our Life CoveredSM has 5 money moves you can make right now as a young mom to help you feel more confident—and help build a life where your family is better protected, no matter what the future holds.
Know Your Own Financial Power
First off, you need to learn this #1 financial lesson: moms have incredible financial power. According to Forbes.com, mothers make 85% of the household purchases and have a combined spending power of 2.4 trillion dollars, which let’s face it, is no chump change. Moms hold tremendous financial influence, from what dish soap to buy to what shoes their kids will be getting for school to what brand of coffee goes in their cup every morning. Knowing your own money power can help you be a smart consumer and make sure that power is used for good, not evil. OK, maybe evil is a bit of an exaggeration, but you get the point.
Sign Up for Life Insurance
Because moms are valuable no matter if they work outside of the home or inside the home, it’s important that you take the time to help protect against financial stress in the event of an emergency. With some coverage options as low as $13/month*, getting life insurance to help ensure your family is better taken care of is something you can’t afford not to do. And to save time, you can search top insurance companies all on one page with Our Life Covered to help find the coverage option and plan that works best for you and your family. In our family, I made sure both my husband and I have equal life insurance because let’s be real, it would cost a heck of a lot to replace all I do for this family. Our Life Covered has a convenient guide to what type of mom can benefit from life insurance, from single mothers to married mothers to partnered moms, to help you sort out what you may need.
Meet with a Financial Planner
I know what you’re thinking: I don’t have any finances for a financial planner to plan! But that’s where you’re wrong — getting your financial future mapped out now, as a young parent, may be one of the most important things you can do even before you feel like you’re making any “real” money. When I first met with a financial planner, I was only 23 and my husband and I could only spare $50 to put away every month for our retirement. But that $50 was better than nothing and over time, it was able to grow in a retirement account that outpaced what I was earning in my proverbial “piggy bank”. Our Life Covered partners with experienced advisors to help you in getting a customized plan that works for your family and your budget, so you get the best of both worlds!
Maximize Financial Aid
If you’re still in school or will be attending college soon, you’ll want to take steps to maximize all of the benefits available to student parents. Be sure you update all of your financial paperwork to reflect that you now have a dependent so you can maximize all of your financial aid and potentially decrease those student loans. And if you’re already paying down any loans, work with your financial planner to ensure your payment fits your situation.
Check That Credit Score
If you’ve only used your credit card to nab a store discount or charge up new clothes you needed for that girls’ weekend away, now is the time to brush up on some basic credit rules. Check your credit score for free and if it’s lower than 620, you will want to focus on bringing the number up. You can bump up your credit score by paying down any existing credit debt, making monthly payments on time, or if your score is severely low, considering a secured card to help you raise it.
As a new mom, there is a lot bound to be on your mind learning the ropes of parenting and taking care of your baby. So don’t let money worries weigh you down. Instead, make sure you get your finances in order early on so you can enjoy more time with your baby and have the peace of mind that no matter what, your little one will be better cared for.
* Disclaimer: The example rate is for illustration purposes. Actual premiums and coverage will be based on age, gender, health history, certain underwriting criteria, state of residence, and tobacco usage. Certain policies may require a medical exam. Advertised products are for US resident only, which can be ideal for young families.