Try to prevent identity theft. Store new, unused and canceled checks in a safe place. Keep your financial records and other important documents (like your Social Security card) in a secure place like a safety deposit box. Never give out personal information on the phone or through the mail or Internet unless you’re the one who initiated the contact.

Shred your personal papers before discarding them. Get a locked mailbox. Carefully review all bills and statements you receive; promptly report any errors or questionable charges. Update your computer virus-protection software regularly. If you do become a victim of identity theft, file a complaint with the Federal Trade Commission, and file a report with your local police department. Also, immediately place a fraud alert on all your accounts that have been affected.

Reduce debt. Commit to spending money only on necessities as dictated by your budget. Ask God to help you be content with what you have, thankful for it, and disciplined enough to live within your means. Focusing on higher-interest debt first, pay down all your debt (credit cards, student loans, car payments, your mortgage) as aggressively as you can. Consider refinancing certain types of debt if doing so will save you money. Dedicate any lump-sum income you receive (such as tax refunds or bonuses from work) to paying down debt, rather than additional spending.

Talk to your creditors as soon as you know you’ll have to fall behind on a payment, such as after a job loss or major illness. Be honest with them about your situation and work with them (and possibly also a credit counselor) to develop a manageable new payment plan. If you’d like a credit counselor to help you (services are usually free), contact the National Foundation for Credit Counseling at www.nfcc.org or (800) 388-2227. Avoid filing for bankruptcy at all costs; it’s truly a last resort and will mar your credit record for years to come.

Downsize your lifestyle. Base your lifestyle on what you truly need and can afford instead of trying to keep up with your neighbors. Have the courage to scale down significantly to enjoy the peace of mind that comes with savings, such as by trading in your car for an older model or moving to a smaller house. Simplify by considering whether or not you really need an item or service before buying it. Substitute by getting something else that costs less or by making it yourself. See if you can borrow the item you need, or ask someone else to split the cost with you and share the item. Shop off season for the things you need. Compare prices at several different stores. Use coupons. Never buy anything on impulse. Look for low- or no-cost ways to have fun rather than spending a lot of money on entertainment.

Teach your kids how to manage money well. Be open and honest with your kids by disclosing how much your family earns and how much things cost [Editor's note: if your kids are very young or you're uncomfortable with the possibility of your kids sharing personal information with those outside the family, you may want to refrain from sharing the exact details of your income at this time.] 

Help them understand your thought processes when deciding how whether or not to make a purchase. Teach them the importance of prioritization and delayed gratification. Consider giving your kids an allowance or paying them to do extra chores around the house. Help them set up a savings account or (for teens) a checking account.


Adapted from Dollars & Sense: A Mom’s Guide to Money Matters, by Cynthia Sumner, copyright 2005 by MOPS International. Published by Fleming H. Revell, a division of Baker Publishing Group, Grand Rapids, Mich., www.revellbooks.com.

Cynthia Sumner is the author of three books for moms and a former contributing editor for MOPS International’s MOMSense magazine. She holds a degree in economics and an MBA with a concentration in finance. Currently Cindy directs marketing for Sumner National Bank, serves on the bank’s board of directors, and provides bookkeeping and accounting services for a moderate-size farming operation. She and her husband have three kids and live in rural Illinois.