A scientific poll carried out in a nod to Mother’s Day has found that when it comes to managing finances, Americans believe that Mother knows best, but a new federal rule will stop stay at home moms from qualifying for new credit cards.
The poll found that most American adults identified their mothers as the person who had the greatest influence over their knowledge of managing money and handling personal finances.
It is most common that it is the mother who has the greatest amount of close interaction with children as they grow up and as a result they often become the primary teacher about money matters.
A Spokeswoman for the National Endowment for Financial Education, Patricia Seaman, explains,
Moms do handle a lot of the day-to-day spending decisions, and that’s what kids see. When they’re young they are dragged to everything with mom, for school, shopping for groceries, for clothes, to the garden center and to the ATM. It’s not just spending decisions. They may also be exposed to money handling habits, like using cash or credit cards or checks. Often during those trips, mom may be talking to themselves saying things like ‘this is on sale this week or maybe this is a better product.
Through her actions, Mom is teaching her children how to handle finances.
Leslie Linfield of the Institute for Financial Literacy says that this is a very traditional view. “Traditionally, moms really did control the family finances,” she said. “Men earned it and women managed it.”
It seems surprising then, that a new federal rule which was approved in March will prevent stay at home moms from qualifying for new credit cards. Lenders will now be required to consider only the applicants individual income rather than the household income.
As a result, four very influential U.S. Representatives have joined forces to urge the Federal Reserve to revisit the ruling which they claim is prejudicial and harmful to stay at home parents who will now need to rely on their spouses credit card. The letter stated,
We continue to be concerned that applying an independent ability-to-pay standard for consumers other than those under 21 may have a negative impact on stay-at-home spouses who rely on household income and do not themselves have independent salaries. While we understand that the Federal Reserve does not share this concern, we believe you will agree about the importance of insuring that the rule will not negatively impact stay-at-home spouses.
Similar Credit Card News:
- [October 5, 2011] New Fed Ruling Limits Credit For Stay At Home Parents
- [June 3, 2011] New Book Offers Tips For Managing Money As A Couple
- [January 26, 2012] First Premier Move Drops Average APR Rate
- [February 24, 2011] Delayed Interchange Fee Cap
- [July 13, 2011] Fed Sets Swipe Fee Cap At 21 Cents
- [July 21, 2011] Fed Rules Banks Must Reveal Credit Score
- [November 16, 2011] Financial Literacy Has Direct Bearing On Wealth
