Managing money is something many of us have never been taught. Yet it’s something we are expected to excel at and control on a day to day basis. This can leave people feeling frustrated and unable to manage their finances effectively. Good money management is something every parent should try and pass down to their children to help them in the future. It’s never too late for your family to learn about money and there is no simpler way than creating a family friendly household budget. Use these four steps to get you and your family better with money with almost immediate effects.
Determine your goals
As a family, you need to decide what is important to you and how you want to spend your money. If you have young children, pictures and drawing may make this easier to understand. Write a list of everything that is important to your family and use this list to determine your goals. For example, if it’s important that you spend time together, your goals would be to save money for a family vacation or road trip. Or if it’s important for you to enjoy your home life, you could spend your money on updating your children’s bedrooms to make it more functional. It doesn’t have to be a huge goal if you don’t want it to be. It’s vital that everyone agrees and participates in some way to make the budget a success. So be prepared to negotiate with your family if necessary.
Stop negative habits
Now you have set your goal it’s important to understand where your money comes from and goes each month. It’s beneficial for all families to record their spending with bank statements and receipts. Sit down and take a good look and how much money is coming in and what you spend it on. This could highlight some negative habits such as spending too much on clothing or eating out. Stop these habits by making necessary cut backs, which again should be discussed with your family before doing so.
Make your budget accessible to everyone
It’s no use creating a budget that only the adults can get involved in. Think about your family’s strengths and how you can use them to help. If you son or daughter is brilliant at using the internet why not get them to find Kohls coupon tips or promotions from your favourite stores. Maybe your husband or wife is brilliant with numbers and would be great at balancing the books. Why not make clothing or cushions with your kids and sell them online to top up your savings. Whichever way you choose to make it accessible, remember to make it fun. Your children will not enjoy the budgeting process if it is mundane or if they feel they are missing out. Ensure that everyone stays focused but don’t be afraid to have a day off from time to time too.
These three easy steps will get you started on a successful household budget that your whole family can contribute to. As well as doing it to reach your set goals, also, use the experience as a teaching opportunity for your children.
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