Family Financial Planning: How to Involve All Members?

Family Financial Planning: How to Involve All Members?

Good family financial planning is one that can engage all family members and motivate them to save and invest. Many parents, however, have a hard time getting everyone involved in the financial issues of the home.

To succeed in this mission, which is essential to the security and prosperity of family finances, some steps are required. These include having collective savings goals, involving each member in choosing investments, and practicing financial education.

Setting the children’s allowance intelligently and strategically and betting on common financial goals are also important cares.

Here are tips for getting all members involved in family financial planning:


Create collective savings goals

savings goals

The first step in engaging children and spouses in family financial planning is to create everyone’s savings goals. It is very important for the inhabitants of the house to keep in mind that family expenses are their own responsibility.

An effective way to get started is to set a maximum value for house bills such as light, gas and grocery, for example. To motivate everyone in the household to their part, try setting a prize, such as a dinner or a walk, if all your spending goals are met.


Involve everyone in choosing investments

Involve everyone in choosing investments

To involve all members in family financial planning, bring their spouse, children, and other household members together before making decisions that have any impact on family finances.

Choosing investments, for example, is an important step towards the financial stability of the home. Present the options and, together, evaluate the possibilities, discussing whether they are viable for the family’s financial possibilities and for the short, medium and long term collective goals.


Practice financial education

Practice financial education

It is very important to practice what you preach. Everyone’s commitment to family financial planning is only possible when you set an example and practice financial education in your daily life, and especially at family time.

In this sense, invest in conscious consumption and show your children, for example, that you value money well, avoiding waste. Escape from impulse purchases, rampant installments and spend only on what’s important to you and your family!


Wisely defines your children’s allowance

Wisely defines your children

Those with small children have the golden opportunity to make a financial education a habit early on – and allowance is a great way to do that.

Sep, according to the age of the small, the amount to be given monthly and show the importance of spending money wisely not to miss at the end of the month.

Explain the importance of conscious consumption and offer your children the first notions of investment and economy. Show that those who make the habit of saving can more easily realize their dreams, whether it’s a lunch out, a playground with friends, or a new toy.


Have common financial goals

Have common financial goals

Saving and involving everyone in family financial planning is only possible by setting common goals. Ideally, make it a habit to hold monthly or at least quarterly meetings to define what the family’s goals will be for the period and what they will do to meet them.

Take a vacation, save money for a car, check in to an apartment. Regardless of the purpose, it is essential for everyone to be on the same page and their part to accomplish what has been defined, whether saving money or helping to save on some accounts, for example.


Be transparent

Family financial planning is really only effective when transparency is present. It is very important that all family members be honest about their income and expenses.

If someone is in debt or unable to meet their expenses, for example, it is essential that everyone be aware and an action plan to control the situation is put in place.

A good idea is to create a board in a common area of ​​the house or a shared file for controlling expenses that are common to the whole family. This way, each member of the household can follow the evolution of expenses and know how close they are to achieving a certain goal.


Share finance knowledge

Share finance knowledge

Financial education is a matter of habit. It is important that everyone strives not only to consume consciously, but to acquire important notions of personal finance.

There are a variety of courses on the internet, some aimed at children. Even at leisure time you can teach how to handle money better – by the way, you can even watch mind-blowing movies that help with this task.

Also, create the habit of buying books on finance and investment and sharing the works with everyone. A family that learns together can certainly save a lot more.


Take joint expense control

expense control

To involve all members in family financial planning, seek to create a system for controlling joint spending. This way, everyone knows where the money is going, what are the main expenses of the house and also in which areas it is possible to save.

There are several financial managers available in the market. It is also possible to create a custom spreadsheet for the family reality. Regardless of the system adopted, it is important to keep track of any expense, however small. That way you will know exactly which categories need to spend less and / or save.

Bet on these tips and make it easier to get everyone involved in family financial planning and practicing financial education with their children. This care will make all the difference in the stability of home finances over time.

The first few months may be difficult, but soon everyone will be in the habit of saving and getting involved with family finances in a natural way. Even simple changes of habit, such as planning grocery shopping, are helpful and make dream fulfillment much easier.

Theresa Buckner