5 Money Tips From My Mom That Prove That She Really Knows Best

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When we launched Thrive and I became the lead editor of the section, (which, in case you haven’t noticed, is chock full of personal finance, career and assorted “adulting” advice) the first person I turned to for ideas was my mom. She’s the go-to person in our hometown for advice, particularly when it comes to money. In fact, she’s such a financial magician that when I lived with her back home, I was convinced she was making much more money than she actually was since we never went without anything. I only later realized that it wasn’t some significant salary that made our lives possible — it was how she managed her money.

Because her tips are too good to keep to myself (and it would be selfish to do so), I’m sharing with you her five biggest pieces of financial advice. Enjoy the tips — we bet your wallet will, too — and if you happen to be particularly fond of how we cover our money content, you can thank my mom for inspiring me to write this story.

1. Online banking is a must.

“Getting out of the credit card jungle was very hard. Online banking showed me every dollar I was spending and on unnecessary things. I became more aware of where my money was going, and as a result, my credit score went from 550 to 845 in a little over two years.”

2. Maintaining a savings account is crucial.

“I allocate money every month to a separate savings account [from my checking] in another bank through automatic deposit, so I never see this in my paycheck. Every year I get a cost of living raise, and that increase goes into savings. It is amazing to see how fast you can accumulate a nice nest egg.  This can be used for emergency funds, as well as car repairs, vacations and holidays). Personally, I am using it toward my retirement.”

3. Meal prep on Sundays.

“Making a few meals one day a week and eating leftovers saves you a lot of money instead of ordering out. If you don’t prefer cooking, take a look at your online banking account and calculate how much you’re spending on takeout per month.  I will bet it’s the same as a car payment. Reward yourself periodically — just not regularly.”

Unsplash/Sharon McCutcheon

4. Know how your health insurance plan works.

“Medical expenses are getting out of hand.  It is our new and required obligation to question whether the doctors we see at the hospital are in-network to our medical plans. I was recently at the ER — the hospital was in-network, but the doctor was not. It cost me $1,300 for the doctor and I couldn’t get around that. You now need to call around to see if you can get medical help elsewhere before going for medical attention. There should be a Health Advocate coordinator who works with your insurance provider. Utilize that person regularly. Do your research. It is your responsibility now.  Make sure you do this or you could be looking at a very large bill.”

5. Amazon Prime is the place to be.

“Free shipping, and since everything is online shopping now, (sadly I am part of the reason malls are dying), it is worth signing up for Amazon Prime.  It costs a little in the beginning for the annual fee, but it’s well worth the expense.”

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