10 money-savvy tips for working moms

MANILA, Philippines – Despite co-hosting two regular shows (the daily morning show Unang Hirit and the weeknights lifestyle show Mars on GMA), plus events hosting, Suzi Entrata-Abrera is still a hands-on mother to three daughters, and wife of 12 years to morning TV show host and environmentalist Paolo Abrera.

Here, Suzi tells how she and her husband are achieving their financial goals for their family’s future, as she shared with the audience of Sun Life Philippines’ Brighter Life Financial Planning Series held in September.

1. Delegate

Suzi is thankful, and jokingly shares, pressured with the trust that Paolo gave her to manage the household finances. They have a fund where they put in all their income, and 50% of it is spent on investing; repairing parts of the house or car or acquiring a property; and dating and traveling as a couple. 

“Women are detailed. It is really the women who are entrusted with the finances because of our ability to note down everything down to the last detail … but if the man feels he is more detailed than the wife, then he should be the one to be in-charge of the finances,” Suzi says.

2. Teach them while they are young

Suzi shares that weekly, Paolo gives their daughters P50 each to buy whatever they like (since they already have their baon). Then they’d ask them what they bought with it. One time, one of their daughters incurred a debt from their school’s store because she was buying goodies for her friends. When Suzi found out, she went to the school and told the storekeeper to not give their daughter any pautang as it defeats the purpose of teaching them the value of money.

Teaching your kids about credit cards is a tougher act, Suzi adds. Sometimes, her daughters would ask them to buy them something, and they would have to “lie” and tell them they have no money. “But you have your credit card,” Suzi quotes her kids.

“That’s why I show them my billing statement. Every time I swipe the card, I show them the billing statement listing everything I have to pay. Of course, they still find it difficult to understand especially I only pay my bill online or through phone banking. They do not see the ‘money’ in there,” Suzi says.

3. Learn when to say “no”

Suzi is making sure that her weekends are free for her family. If they ever come second, she make up for it big time. “There are times the project is so big that you could not just decline it, babawi ako ng malaki sa mga anak ko (I’ll make it up to them big time). They like toys, so we give them those as pambawi,” she shares.

Learning when to say “no” is also important. Suzi says that when she was younger, she would just grab whatever project that would come her way, but all that changed because of her family. “My family is on top of my list. Minsan manghihinayang ka sa kikitain mo, pero pamilya pa rin ang dapat una sa lahat (Sometimes, you’ll regret not earning that money, but family should come first,” Suzi stresses.

4. Set clear goals and fund your dreams.

Have a practical timetable. That’s why it is important to stick to your timeline and plow the needed resources into it. “Have a vision down to the last detail to make goals more exciting,” she says.

She shares that they are now saving for a house, to be ready in four years’ time. Suzi and Paolo want to have a sturdy home for their daughters where they can still live for years to come. They also want it to be a “green” home considering the natural calamities we are experiencing.  It should also have a bigger “handyman” room for Paolo who dabbles into blacksmith, carpentry, and ornamental iron works as Suzi proudly shares that her accessories are made only for her by Paolo.

5. Begin a savings habit

“My savings habit has changed over the years,” Suzi shares. She cites that she learned the value of hard-earned money from her mother, who as a working mom was doing her best to keep their business afloat. “Maipon na ako kahit noon pa (I was a saver even before),” she says, adding she adheres to income less savings is equal to expenses. 

Decluttering is also a must for Suzi. She says she and her friends from Ateneo hold a garage sale twice or thrice a year. “When we declutter, sometimes we find out we have an extra dress or a pair of shoes of the same style but different color, and we actually do not need those extras. For a time I was also collecting designer bags. Aminin ninyo, ang iba sa inyo, bumili rin ng mga bag (Admit it, some of you also buy bags), installment basis,” earning laughter from the audience.

“My ‘excuse’ now for having those bags is that my daughters will have them when they grow up. Also, if we were able to buy the ‘basic’ pieces of jewelry, like a pair of pearl or diamond stud earrings, we should be okay. We really do not need too many of such things,” Suzi shares.

6. Prepare for emergencies

The prescribed emergency fund should be equivalent to three to six times of your monthly expenses. The fund can be used to tide you over financially in case of sudden illness, unemployment or if you need to relocate due to a natural calamity.

Preparing for an illness in the family or a natural calamity still needs to be fully ingrained among majority of the Filipinos. “Tayong mga Filipino, ubusan ng yaman talaga. Kahit walang-wala na, gagawa tayo ng paraan maligtas lang natin ang mahal natin sa buhay (Down to the last centavo. Even if we have nothing, we will make a way to save the lives of our loved once). But you don’t want all of your hard-earned money to dwindle because of an illness in the family,” Suzi emphasizes.

7. Get insured

“My mother taught me the importance of insurance,” Suzi shares. Thus, she and Paolo are insured and their daughters’ tertiary education is funded as well. Their house and their cars are fully covered as well. “That’s why we have to be financially prepared and insured from life’s unforeseen events,” she says and adds that she has a life insurance policy that gives her insurance protection and cash benefits.

While still active in both their careers, Suzi and Paolo are already preparing for their retirement as well. “Ngayon pa lang, pinag-iipunan na namin ‘yong retirement namin through a certain investment product or insurance product. So, ‘pag tumanda kami, ma-enjoy naman namin ‘yung time namin to travel together. It is the same way that my mom taught us. Kapag nagkasakit ako, ayaw kong maging pabigat ako sa aming mga anak,” Suzi details. (As early as now, we’re saving for our retirement so when we grow old, we can enjoy our time and travel together. When I get sick, I don’t want to be a burden to my children.)

8. Make money, earn more

“There are several ways to make the money you earn, earn more,” Suzi says. She shares that she has several investments and other financial products to keep her financial portfolio diversified. Apart from bank accounts, she also has mutual funds, stocks, bonds, and UITFs (unit investment trust funds). “There is more to savings than just savings account. Those other financial products ensure that my money earns more,” Suzi says.

9. Seek professional advice

You can benefit from the expertise of financial planners who can assist you in prioritizing your life goals, crunching the numbers, and recommending solutions to your financial planning concerns. “You would be surprised at how much you can learn,” she cites.

Suzi also suggests talking to your bank’s investment professionals as most banks have tie-ins with insurance companies, while mutual funds are both offered by banks and insurance companies. “It might be confusing at the beginning, and we’re always in a rush that it is hard to absorb everything in one sitting. But when you do, it is so eye-opening, like ‘you mean I can earn this much?’ Of course not without a bit of a risk. Thus, I invest only in what I am comfortable with. Talk to a professional for a whole slew of financial products you can choose from,” she says.

10. Stay the course

Keep track of your progress regularly when implementing a plan. She shares that sometimes her triathlete husband would tell her that his friends have already upgraded their bicycles. But their goal to have a house in four years prevail, thus Paolo remains content tuning up his bicycle from time to time. “Since you have thought about it good and hard, try to stick your guns,” Suzi advises.

– Rappler.com

 

Working mother and child image via Shutterstock