Now that the law has changed surrounding an employer’s ability to hold onto their maid’s pay for them, many of the employers have begun to scramble in order to adapt to the new change. Plus, it can be understood as to why the change was made and that is to eliminate any possible abuses financially as well as accusations or misinterpretations. Many employers and their employees have now become more concerned with their ability to become financially responsible. This dilemma can be a hard one to figure out if you don’t know where to look. But the good thing is that there are a few tips that you can provide to help your maid alleviate any possible financial downfalls, including these five.

1. Show Them How to Pay Themselves

Knowing how to save is an important step towards being financially responsible. This is especially true for the older generation who plan to live a life of retirement in the future. To be successful with saving, your maid must be serious about it. To do this you just need to have them deduct a specified amount from the salary of maid and set it aside each time payment is received. A great percentage to start with is between 10-15%.

Once the amount is separate you have many options available as far as saving it goes. A couple of these options include letting it grow in a regular savings account through your bank or investing it. Although the latter will be riskier, it can grow rather quickly in a short amount of time. No matter what though, having a plan is what will show them how to be financially responsible.

If investing is the route that your maid wants to take, then you need to ensure that they know some great approaches on how to distribute the amount. This is done by choosing securities that will provide the best benefit for the long run. Once investing has commenced, all they need to do is keep an eye on their growth and make adjustments as necessary to ensure they remain on course with their goal.

2. Create a Rainy Day Account

Setting aside money for a rainy day is a great way to give your maid the added security in case of job loss or any emergency that prevents them from working. The amount that is set aside needs to be able to sustain you and your way of living for at least 6-10 months. This amount could be more or less depending on if you are married or single.

3. Eliminate Your Dependence on Credit Cards

Being financially responsible includes using credit cards as little as possible or eliminating their use altogether. Your maid needs to understand that the money on credit cards is “borrowed money” and needs to be paid back if used, plus interest.

If using a credit card is absolutely necessary, then using a card with a low APR will be the best way to save money by not having to pay back as much each month.

Explain how maxing out a credit card could lead to financial ruin or even how a high balance could result in not being able to repay the amount if something else also occurs, like a job loss. Having a high balance can also have a negative impact on their credit and cause them to be seen as “high risk” to lenders regardless of making timely payments.

4. Get Them Educated

On top of knowing how to open a bank account, your maid needs to know how to fully manage any account that they do open. Getting educated about money management and account management will provide tools that will improve their outlook towards finances so that they’ll have a better appreciation for money.

Besides educating them, you as their employer will be able to sleep better at night knowing that your employee is knowledgeable in handling their own finances in a responsible manner. Besides that, when educating takes place it decreases any chance of being involved in financial dealings that are too risky or are too good to be true. Getting in touch with your financial institution or a financial advisor can help point you in the right direction as far as when courses become available.

5. Divide Your Finances into Different Groups

Dividing the money earned into different groups will allow you to control the amount that gets spent for different things. You will also know the exact amount that is available for spending. For example, you know how much pay is received so you would separate a predetermined amount for things like groceries, gas, and entertainment. When payday comes around take those amounts and set them aside until you need them. This will allow you to keep tabs on the remaining balances each time they are used. So if you need to fill up on gas, only take your “gas money” to use and if you need groceries, only take your “grocery money” to the supermarket. The good thing is that when the money runs dry for each area, you will instantly be aware of it. Using this system prevents overspending and if you see yourself penniless prior to the next payday, then it may be time to adjust your budget.


However you feel like spending your finances should have these five tips involved in some way. That way the financial fundamentals will be fully understood and can prevent possible financial troubles from occurring. There are many benefits one can achieve once financial responsibility is achieved and one benefit includes happiness. Happiness from being responsible can easily lead to other positive benefits just by knowing how to manage finances. Knowing where to turn to become educated about it, developing a plan to secure one’s financial future, and knowing how to manage it all says a lot about an individual’s character. Being financially responsible will also alleviate any worry that an employee may attempt to steal from you throughout the course of employment.