Involving the entire family into making a household budget – Steps to take

Image and video hosting by TinyPic


To be able to make ends meet and put aside money for the near future is one of the biggest challenges which all Americans face virtually every year. We live in a culture which is totally driven by consumption and this makes saving a socially difficult task. While spending has become too easy, saving has become extremely tough. Majority of the financial decisions that we make are done keeping our entire household in mind but unfortunately the duties of managing the finances is not always a family affair. If you really want your entire family to reach all the pre-set milestones, you have to involve each of them into taking vital decisions about the household budget. But the million-dollar question is how you would involve them when they’re extremely ignorant about their finances. Here are few steps that you can follow.

Bring your parents on the same financial note

Sit with your spouse and ensure that both of you share the same financial goals. Once you sit together, you may find out that you’re not on the same page and this can be fixed together. Don’t forget that your wedding is more vital than money and hence you need to choose a way of compromising which doesn’t spoil your relationship. You also have to ensure that kids get the right financial message from you.

Involve the kids into making decisions regarding their activities

These days, kids are highly programmed, running from practicing soccer to learning music lessons to participating in scouts. Sit with your kids and inform them how each activity costs and how much is still available from your budget so that you can spend for them. This can help them make decisions about which activities are more important and which are not. They could then make priorities with regards to the budget.

Set a realistic savings goal, measure your progress and celebrate success

As you’re working together as a family, set few goals for keeping aside money in a savings account every month. Monitor the progress that you make every month and whenever you reach a goal, put yourself in front of the next target so that you can celebrate achieving milestones in the most appropriate way. Everyone has an interest in spending funds but if all are eager to share a similar savings goal, it is easier to spend less than what you save.

Plan family activities keeping your budget in mind

Suppose you have only $30 left for a family activity, allow the kids to decide how you can make fun out of that evening. You can implement little bit of creativity in order to make the evening even more fun filled and exciting.

Therefore, if you’re eager to involve your entire family into deciding about household finances, you can take the above mentioned steps. The more you include everyone into financial decisions, the better organized your family will be.

Image source