You know that moment when your kid asks where Wi-Fi comes from, and you’re suddenly fumbling for an answer that makes sense? That’s how a lot of moms feel about investing. It’s this vague, important thing we should understand, but who has the time to sit down and decode Wall Street lingo between school pickups, work meetings, and remembering to defrost the chicken?
Maybe you’ve tried to get into it before — listening to a podcast while folding laundry or Googling “best investments for beginners” at 11 p.m. after the kids are asleep. But the moment you see phrases like “diversification,” or “risk tolerance,” your brain taps out.
The truth is that investing doesn’t have to be complicated. You don’t need to be a finance bro in a Patagonia vest or spend hours watching the stock market ticker. If you’ve ever meal-prepped, planned a family vacation on a budget, or figured out how to make three schedules work in one day, you already have the skills to be a savvy investor.
CafeMom spoke with Kelly Keith, Divisional Leader at J.P. Morgan Personal Advisors to break investing down into bite-sized, mom-friendly explanations — no jargon, no pressure. Because building financial security for your future shouldn’t feel like cramming for an exam you never signed up for.
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Biggest Misconceptions Moms Have About Investing
We asked Kelly about the biggest myths moms believe about investing that prevent them from getting started.
‘I need a lot of money.’
Kelly says that many moms think that you need a lot of money to start investing, but this isn’t true. There are online platforms that allow you to invest on your own with no required minimum.
“If you’re seeking human advice, there are platforms with lower minimums where advisors can collaborate with you remotely, such as J.P. Morgan Personal Advisors. This can make it convenient to receive guidance without needing to travel to an office during business hours,” says Kelly.
‘I need to know a lot about investing before I start.’
Kelly explains that another misconception is that many moms believe they need extensive knowledge about investing before they begin. This isn’t the case. There are many educational resources online that cover both basic and more complex topics.
“It’s important to seek out reputable sources you can trust. When meeting with a financial advisor, it’s helpful to prepare a list of questions in advance. Advisors are there to assist you in understanding the options that best suit your unique financial situation,” advises Kelly.
‘It’s too late for me to start.’
Kelly recommends that if you haven’t started investing yet, it’s beneficial to begin as soon as possible to take advantage of the effects of compounding. It’s never too late to start.
“Compounding allows your gains to be added to your principal, meaning your money can earn interest on the interest you’ve already accumulated, potentially growing at a faster pace,” says Kelly.
Top Three Investment Terms Every Mom Needs To Know
We asked Kelly about the top three investment terms every mom should understand and what they mean in plain language. She shared the following about risk tolerance, diversification, and advisor compensation:
Risk Tolerance
Kelly explains that risk tolerance refers to your ability to handle the ups and downs of the market, which can lead to gains and losses in your investment portfolio. Investing for the long term can help you navigate market fluctuations.
If a decrease in your portfolio would be challenging, you might consider a more conservative investing approach. On the other hand, if you’re comfortable with market volatility and willing to take risks, a more aggressive approach might suit you.
“Your time horizon is a key factor in determining your risk tolerance. For example, if you need the money soon, such as for a child’s college tuition, a conservative approach may be more appropriate, compared to funds earmarked for a distant retirement,” says Kelly.
Diversification
Kelly shares that diversification involves spreading your money across a variety of different investments. This strategy can potentially lower the volatility of your portfolio’s returns, thereby reducing risk. Losses in one investment could potentially be offset by gains in another.
Advisor Compensation
Kelly explains that if you work with a financial advisor or are considering doing so, it’s helpful to understand how they are compensated. During your introductory call or meeting, ask the advisor about their compensation structure and do some research beforehand.
“Advisors are typically compensated through either a management fee or a commission. With a management fee, you generally pay a percentage of your invested assets. Commission-based advisors receive a fee for each investment transaction,” Kelly tells CafeMom.
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Simple & Time-Efficient Investment Strategies for Busy Moms
We asked Kelly about quick and easy investment tips for busy moms.
Stay Consistent
Kelly explains that for moms who don’t have time to analyze stocks daily, the good news is that time in the market is typically more important than timing the market. This means consistently investing for the long term is more important than picking the right stock at the right time.
Create a Plan
Kelly says that successful investing starts with a plan. A financial advisor can help you create a plan, or you can use digital tools to create a plan on your own.
If you’re a Chase customer, you can use Wealth Plan in the Chase mobile app or on the Chase website to create a plan.
“A plan will help keep you on track for your goals, such as buying a vacation house or retirement, and will help prepare you for the unexpected,” advises Kelly.
Set Up Automated Contributions
Moms are busy juggling a lot, so Kelly advises setting up recurring contributions to your investment account that happen automatically. This helps take the guesswork out of when to invest and lets you focus on other things. It will also help you keep the plan you created on track.
Therefore, investing doesn’t have to be overwhelming or time-consuming — it’s just another way to plan for your family’s future, just like meal prepping or mapping out your kid’s college savings.
The key is to start small, stay consistent, and ask for help when you need it. If you’re ready to take the next step, consider reaching out to a trusted financial advisor who can help tailor a plan to your specific goals.
This article is for informational purposes only and should not be considered financial advice. Always consult with a licensed financial professional before making any investment decisions.
