You've probably heard that getting everyone involved is important to the success of your family budget. But you may be wondering if that's really necessary, or how to even do it. Here are some ideas and tips for getting everyone on board with your family budget.
Be Open
Sometimes parents try to hide their financial situation from their kids and/or each other. While this may seem like "sparing" the ones you love, in actuality it can cause undue stress on the one family member who does know how bad things are, or how things work financially.
It's true that you don't want to overburden your kids with responsibilities that aren't theirs, but including them in a frank discussion of your financial situation can go a long way toward easing your burden and garnering their willing participation.
The Family Meeting
Call a family meeting to discuss finances. If you've never done a family meeting before, this is a good place to start. It may not be everyone's favorite topic, but it's an important one. Ultimately, your kids and spouse will be glad you included them in the discussion. Another tip on the meeting - try to call it at a time when it doesn't cut into other plans. This should help reduce resentment.
It Affects Everyone
Explain how your family finances affect everyone in the household. Be clear and specific, citing fees, tuition, allowances, groceries, etc. and how they all cost money. There's no need to beat everyone over the head with this information, so to speak; but it gets family members to think a bit about where the money comes from. It's easy to take things for granted.
Cutting Back
If the budget involves cutting back, it's probably a good idea to cut back in areas that affect the whole family rather than just one member. Otherwise, that one person may resent what seems to be preferential treatment of the others, and you've lost your whole-family approach to the budget.
Set Goals Together
As you work to formulate your budget, work on common goals. What would your youngest child like to see as part of the budget? She might say toys. Your oldest child might point to electronic devices as something to include; your spouse may say a nice vacation. Consider everyone's wishes and come up with some realistic, common goals. Not everything is doable, of course; but finding creative ways to get everyone's needs met is what family life is all about.
Thursday, October 30, 2014
Wednesday, October 15, 2014
Successful Family Budgeting
Creating a family budget is within everyone's reach, but creating a successful one requires some particular methods. Here are some tips to help you create a successful family budget.
Get Everyone on Board
The more inclusive your budget is, the more likely it is to work well for your family. Include every family member who is old enough to understand. A budget affects everyone, and it's a good idea to listen to input from other members of the family.
Leave Room for Luxuries
Some budgets are so tight that it may seem there's no room for any luxury. But if you get a bit creative about what constitutes a luxury, you will probably find you can in fact afford some kind of privilege or luxury. It could be something like buying your favorite brand name item at the store instead of settling for the store brand, or maybe buying fresh fish instead of frozen once a month. Maybe ordering a pizza or Chinese food is a luxury for your family that you can include in your budget.
If you are budgeting with more money, your luxury could be a family vacation or new piece of electronic equipment. The point is to include some kind of luxury in your budget. This helps keep family members motivated and makes the budget easier to deal with.
Get a Good Estimation
To do this, it's a good idea to take your last three months' worth of income and create an average. When in doubt, round down so that surprises will be more likely to be on the plus side. The same is true for expenses - include at least three months of expenses to get a true picture.
Be Patient
It takes a few months for a budget to sort itself out and become habit. There will be bugs that need to be worked out. Understanding this can help you stick with it as it needs tweaking and adjusting.
Software
For some, using software to lay out the family budget can be very helpful. Software that is designed for the purpose may make creating the budget easier.
Combine
As you look at the things that cost you money, remember gas and miles on your car. Combining errands is something most people try to do; but there might be some other combinations that you hadn't thought of. For example, visit out-of-town family members during your vacation.
Distinguish between Optional and Necessary Spending
This distinction is harder to make for some people than others, and it's tougher in some family dynamics than others. What one person thinks of as a "necessity" might be looked at as a luxury by someone else. If you're in doubt, check budget formats and accepted principles in this regard that come from a third party.
Pay off Debts
It's unpleasant, but paying off debts needs to be high on the priority list for your family budget. The sooner they're paid off, the sooner you'll have more money left over!
Get Everyone on Board
The more inclusive your budget is, the more likely it is to work well for your family. Include every family member who is old enough to understand. A budget affects everyone, and it's a good idea to listen to input from other members of the family.
Leave Room for Luxuries
Some budgets are so tight that it may seem there's no room for any luxury. But if you get a bit creative about what constitutes a luxury, you will probably find you can in fact afford some kind of privilege or luxury. It could be something like buying your favorite brand name item at the store instead of settling for the store brand, or maybe buying fresh fish instead of frozen once a month. Maybe ordering a pizza or Chinese food is a luxury for your family that you can include in your budget.
If you are budgeting with more money, your luxury could be a family vacation or new piece of electronic equipment. The point is to include some kind of luxury in your budget. This helps keep family members motivated and makes the budget easier to deal with.
Get a Good Estimation
To do this, it's a good idea to take your last three months' worth of income and create an average. When in doubt, round down so that surprises will be more likely to be on the plus side. The same is true for expenses - include at least three months of expenses to get a true picture.
Be Patient
It takes a few months for a budget to sort itself out and become habit. There will be bugs that need to be worked out. Understanding this can help you stick with it as it needs tweaking and adjusting.
Software
For some, using software to lay out the family budget can be very helpful. Software that is designed for the purpose may make creating the budget easier.
Combine
As you look at the things that cost you money, remember gas and miles on your car. Combining errands is something most people try to do; but there might be some other combinations that you hadn't thought of. For example, visit out-of-town family members during your vacation.
Distinguish between Optional and Necessary Spending
This distinction is harder to make for some people than others, and it's tougher in some family dynamics than others. What one person thinks of as a "necessity" might be looked at as a luxury by someone else. If you're in doubt, check budget formats and accepted principles in this regard that come from a third party.
Pay off Debts
It's unpleasant, but paying off debts needs to be high on the priority list for your family budget. The sooner they're paid off, the sooner you'll have more money left over!
Sunday, October 5, 2014
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Wednesday, October 1, 2014
Customise Your Budgeting
Your family budget does not necessarily have to fit a template - even if you do use a template, you can customize it. A budget that really fits your style and family dynamic tends to be a lot easier to stick with, and can even be fun! Here are some tips for making a creative, customized family budget.
It's Your Budget
Get your whole family to participate in creating the budget to make it really yours. Create common goals and brainstorm for fun and creative budgeting ideas.
Cookouts
The great American cookout is a great way to have an "outing" while saving money. If you grill seasonal garden vegetables, it's an even bigger money saver. Get creative - you can grill inexpensive, "ordinary" foods and make them seem like a treat. For example, mix up some flat bread dough and cook it on the grill. You can even do pizza on the grill!
Go "Shopping" for What You Don't Need
This can be fun as a family. When you're out running errands or at the mall, make a point of pointing out all the useless things you see that you don't need. Some people can have a lot of fun with this - they find the craziest looking clothes, for instance, and laugh about how much they don't need them and how much they're saving. It's fun, but it also teaches your family some important lessons about needs versus wants.
Creative Savings - a New Take on the "Swear Jar"
Have you heard of a "swear jar"? Some families who are trying to improve their language will institute a swear jar. Any family member who swears has to put a quarter into the jar. Get creative with your family - is there something your family would like to improve on that could use a "swear jar"? Here are some ideas:
* Every time your child talks back he or she has to put a quarter in the jar.
* Playing video games, watching television, and other entertainment media "costs" 50 cents for every half an hour.
* Family members must pay a quarter each time they don't put away their shoes, toys, or whatever item always seems to be left on the floor each day.
* Complaining about dinner will cost family members 50 cents each.
Another method is simply never to spend change. When you pay cash for something, always use paper money - if the total is $5.26, give the clerk $6. Then put this change into the jar. You'll be amazed at how this can accumulate over the year, especially if you use cash often.
DIY Videos
Make use of all those online tutorials to fix minor problems around the house. Try typing your problem into your search engine and look for tutorials. It's amazing how much information is on the internet, even for solving obscure problems.
It's Your Budget
Get your whole family to participate in creating the budget to make it really yours. Create common goals and brainstorm for fun and creative budgeting ideas.
Cookouts
The great American cookout is a great way to have an "outing" while saving money. If you grill seasonal garden vegetables, it's an even bigger money saver. Get creative - you can grill inexpensive, "ordinary" foods and make them seem like a treat. For example, mix up some flat bread dough and cook it on the grill. You can even do pizza on the grill!
Go "Shopping" for What You Don't Need
This can be fun as a family. When you're out running errands or at the mall, make a point of pointing out all the useless things you see that you don't need. Some people can have a lot of fun with this - they find the craziest looking clothes, for instance, and laugh about how much they don't need them and how much they're saving. It's fun, but it also teaches your family some important lessons about needs versus wants.
Creative Savings - a New Take on the "Swear Jar"
Have you heard of a "swear jar"? Some families who are trying to improve their language will institute a swear jar. Any family member who swears has to put a quarter into the jar. Get creative with your family - is there something your family would like to improve on that could use a "swear jar"? Here are some ideas:
* Every time your child talks back he or she has to put a quarter in the jar.
* Playing video games, watching television, and other entertainment media "costs" 50 cents for every half an hour.
* Family members must pay a quarter each time they don't put away their shoes, toys, or whatever item always seems to be left on the floor each day.
* Complaining about dinner will cost family members 50 cents each.
Another method is simply never to spend change. When you pay cash for something, always use paper money - if the total is $5.26, give the clerk $6. Then put this change into the jar. You'll be amazed at how this can accumulate over the year, especially if you use cash often.
DIY Videos
Make use of all those online tutorials to fix minor problems around the house. Try typing your problem into your search engine and look for tutorials. It's amazing how much information is on the internet, even for solving obscure problems.
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