Episode 17: Financial Security During a Pandemic and Teaching Kids About Money Management with The Budget Mom’s Kumiko Love
Live Date: Monday, August 10, 2020
Today, Heather sits down with one of our beloved clients, Kumiko Love, to talk all things finances! Kumiko, also known as The Budget Mom, is an Accredited Financial Counselor and single mom who paid off $77,000 in debt across eight months. She now shares her personal journey, the tools she used to pay off debt, and money-saving strategies with millions of followers online, all with one goal: to empower women everywhere to regain control of their financial lives. Heather and Kumiko talk about sustaining a budget during a pandemic, prioritizing savings during uncertain times, giving ourselves grace, teaching kids about money management, the importance of gratitude, and so much functional advice for navigating our current season.
- There is a stigma around living paycheck-to-paycheck, and Kumiko agrees that can mean struggling in your life. She, instead encourages, budgeting paycheck-to-paycheck. Kumiko’s system was created out of frustration from trying other systems out there, and she’s come up with a system that worked for her and can work for you. Her number one tip: “Never take financial advice as a one-size-fits-all approach. Our financial and budget journeys are extremely personal. You can learn more about her nine-step system here.
- We are living in extremely uncertain times. Some people have had to tighten their budgets, while others have lost their jobs. Miko shares the first steps you should take for financial stability during this uncertain time.
- Analyze where you are right now. Don’t assume your pre-COVID-19 budget will work for this current landscape. Kumiko urges us to take a closer look at our current situation and keep evaluating as times continue to change.
- Reevaluate your financial goals. Maybe pre-pandemic, all of your extra money went towards paying off debt. But, Kumiko urges us to save right now, rather than paying off debt. Financial preparation – in the form of savings – is critical right now.
- Make a list of priorities. Constantly evaluating your necessities and priorities will help you stay on track.
- Unsubscribe from retail emails. This will help you focus on the necessities and avoid the instant gratification of sales and good deals.
- Kumiko truly believes bringing pen to paper is the most effective way to budget. She won’t offer her plans digitally or in an app.
- Now is the perfect time to be incorporating financial skills into our kids’ education. Of course, you don’t want kids to worry and stress about money, but you can teach them the skills they need from an early age to understand money management. Kumiko encourages listeners to:
- Be a good example. Let your kids know that, one, there is a budget, and two, what the budget looks like. Be open and honest with them.
- Allow them to help. Let kids ask questions. Allow them to fill in your tracker. Let them count out the cash for your envelopes.
- “I think so often – as a mom of boys myself – about the model that you are showing them as an example, right? So by changing that mindset and those practices, you began really modeling for him what it looked like to be in control of those things and be successful at financial management and, also, to have this quality of life you desired.” – Heather Adams 2:57
- “By being a good example for my son, I wanted my son to know what hard work looked like. But not only that, I wanted him to see the benefits of hard work and what it meant to not give up.” – Kumiko Love 3:29
- “If you are doing it the right way, your budget should not look like anyone else’s.” – Kumiko Love 7:51
- “Unless you know where you are starting right now – today – it’s really hard to change what you don’t know.” – Kumiko Love 10:25
- “There is something that psychologically happens to us when we write down what we are spending. All of a sudden, we realize and acknowledge our spending is real.” – Kumiko Love 12:09
- “Unfortunately, with the pandemic, so many of us were forced to realize that we did not have enough emergency savings. And, I’m not just talking about personally, but I’m talking about small businesses, as well.” – Kumiko Love 19:01
- “Managing our money is not just about paying the bills.” – Kumiko Love 19:47
- “I am a spender at heart, and I know that about myself. But, I also know that there are other things in my life that are more important than instant gratification.” – Kumiko Love 24:07
- “I think that is key to this whole season and navigating this entire chaotic time: extending yourself more, and more, and more grace than you’ve ever given yourself before.” – Heather Adams 27:40
- “You may not realize it, but your children see and learn so much from you by watching and recognizing what you’re doing.” 32:42
- “Without seeing that – and without seeing how you work through it – I feel like you are missing out on an opportunity to teach valuable lessons. Because look, as they get older, money management is not always going to be sunshine and rainbows. What we can teach our children now is how we work through the process of getting out of our struggles.” – Kumiko Love 36:27
- “I definitely think it’s good for them to have their own choices because without making their own choices, they can’t understand the trade-offs of their actions. – Kumiko Love 39:40
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