In honour of Mother’s Day, I am dedicating this article to money lessons from the women in my life. More specifically, my mother for surviving against all odds, teaching me so much about money management, and encouraging me to pursue a career in finance. 

I would probably have made a terrible journalist, anyway. 

Money Lessons From the Women in My Life

I have been fortunate enough to grow up surrounded by several mother figures. We experienced ups and lows over the years, especially personal experiences with my mother. But I have come to learn a lot about money management from their experiences. Most importantly, I have been lucky enough to have them live long enough. And I am forever in awe of their ability to overcome their challenges and make something for themselves. 

Without further ado, here are the top money lessons from the women in my life;

Money Lesson 1: Always Having an Emergency Fund and Savings

Have you seen your mothers and other elderly ladies use chamas to set aside a few coins? Or hiding money in jars and under the mattress for future uses? Even when strapped for cash, I have always found it interesting and enlightening how women in my life always tried to save money. It didn’t matter that it was little money. A few coins here and there always added up to a sizable amount that could buy food, household goods, clothes, pay medical bills and school fees for their kids. 

My mother had the experience of working in a financial institution. That made her a big proponent of setting money aside. I remember her insistence that I should open a Sacco account when I started making money from small gigs back in campus. It is the reason I could afford to borrow funds and cater to my last semester’s fees and living expenses.  

And that’s a motto I have tried to live by every paycheck. Even in my 20s, when I had no concrete financial goals and plans, the one thing I always did was save money.   

Interesting read: 5 Money Lessons I Learned in My 20’s

Money Lesson 2: Tales of Bad Debt and Debt Management 

Unfortunately, I have watched the debt situation get out of hand in some cases. One of the first few memories I have about bad debt was when one of my relatives was hounded by a certain microfinance. She had defaulted on her loan, and the harassment was getting out of hand. Since they were desperate and needed a quick fix, they asked my mother for help. The help? To use some of our household goods as collateral. The plan was to let the microfinance hold onto the items for a few days as she awaited her salary to check-in. Her salary would repay the microfinance and get our things back. Of course, taking pity on her dilemma, my mother had to help. But it came at a price. It’s been over a decade, and that’s the last we ever saw or heard of the items.  

The stories add on, from loan defaults to loan consolidations that left one living paycheck to paycheck. All of these were unfortunate situations I saw affect not just the borrower but those close to them. 

However, I learned some money lessons. These experiences made me want to be more cautious with my debts. I have always been particular about the funds I borrow, especially significant amounts. Plus, I try to always live by the below rules;

• Having a financial goal in place before borrowing the money. That way, I can ensure there is a plan for the money and that it doesn’t go toward other activities. 
• Besides student loans, my goal has only been borrowing to purchase assets. 
• I try not to have more than two debts running concurrently. 
• I am also always keen on the terms, especially the repayment period and type of interest rate. I aim to avoid a lengthy repayment period that only costs me more interest payments. 

Of course, I had some failings along the way. In my 20s, long before I got serious about financial planning, digital loans were my go-to solution for emergencies. Still, I ensured I played by the above four rules when borrowing from banks and Saccos. 

Money Lesson 3: Investing and Creating Generational Wealth

Have you lived through Black Tax? If not, count yourself lucky! So many people have failed to create generational wealth for their kids and future generations because they are held hostage by Black Tax. From supporting their siblings and parents to being the paycheck or financial solution for other extended family members. 

This makes it hard for them to save and invest. It also leaves many in a never-ending debt cycle. The income they bring is barely enough to support everyone. By the time they retire, it’s a little too late. That means they have little retirement savings, and their kids will probably take over the baton and care for them. 

When we used to joke about trust fund babies back in the day, I never realized how lucky those kids were. Never having the obligation of caring for your siblings, parents and relatives the minute you get your first paycheck. Missing years of enjoying the benefits of compounding interest because you save or invest little or have nothing at all left to save and invest. 

Yes, some unavoidable circumstances have left many under the Black Tax’s mercies. But I hope to do my best for future generations. That includes investing, having the right insurance policies, like life insurance, and having an estate plan. 

Money Lesson 4: Being Financially Independent 

In the wake of in-laws storming the house and taking anything and everything they could lay their hands on before the old man’s body was even cold, my mother had one thing to get her back on her feet—her job and own assets. 

It’s not just my mother’s experience. I have seen many women play the breadwinner role even when their spouses could support the family financially but chose not to. And others lack even the basics because they have no sources of income, while their spouses turn a blind eye. 

The one lesson I have learned through it all is to have my own sources of income. Being financially independent has allowed me to have savings and investment accounts. It has made it easier for me to walk out of situations that could potentially lead to abuse. But, most importantly, it has allowed to buy my own assets.  

Money Lesson 5: Owning Assets Under My Name

Tales of women losing everything they have worked for when their partners die or leave them for someone else are as old as time. These cases still exist. I just pointed out my family’s experience and how my mother benefited from having some assets under her name.  

While the law in Kenya advocates for equality between married couples on paper, women rarely have the financial muscle or protection from the legal process to attain what’s theirs during the divorce process or the death of a spouse. 

Let’s not even get started on intimidation by in-laws and such parties! 

Among the many “excuses” I have heard is that the woman did not contribute any money toward purchasing the assets. But in most cases, the woman does contribute. They are either giving out the money to their partner and playing the silent shareholder game or labouring at home and paying the price of unpaid labour. 

Given that these are experiences I have seen women around me go through, I have long held the belief that I MUST own assets. And even when it is shared property, I always ensure that my name appears on the title deed, I know the necessary details about the parcels, and always have an idea of where the documents are. 

In Conclusion 

Here’s to all the women who continue to teach us. And to all the money lessons we have benefited from based on their experiences, good or bad.

Happy Mother’s Day!