We’ll never stop talking about the importance of budgeting in our day-to-day lives. Essentially, budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do. Here are a few ways to get your family on board with budgeting.
Why is a Family Budget a Good Idea?
A family budget is essential to managing your money. Having a proper budget can help you and your family take the first step towards control of your money. It can also help you avoid debt. And it lets you get on with enjoying family life, rather than spending too much time worrying about your finances.
That’s because a family budget helps you:
- spend your money wisely on the things you needs
- save money for the things you like but can live without
- set aside money for unforeseen expenses
- stop accidental and Impulsive spending
Working out how much money you need for everyday essentials like food, housing, utilities like gas, electricity, phone and water, transport and medical services can help you make sure you have enough for unexpected expenses and emergencies.
How To Get The Entire Family Onboard with Budgeting?
Budgeting is one of the best ways to help you stay on top of your family’s finances from month to month. However, For your budget to work, it’s vital that every member of your family remains on the same page and engages with the process.
Here are some easy tips to help get your entire family to buy into budgeting:
Have Regular Family Meetings
I don’t remember my family ever talking about money, so as a kid I had little understanding of money. To hold a successful budget meeting, you need to plan ahead of time to make it a fun and a positive experience for the entire family. Choose a time when everyone is awake and focused. If everyone is tired, they are more likely to bicker and start to view money discussions as a time of tension.
Value Everyone’s Opinion
Work together to create a reasonable budget for the entire family. Make sure everyone is aware of where the family stands financially and the goals you’re working towards. ask for their ideas and advice, they’re much more likely to participate if they had a hand in creating your budget! Give your kids the opportunity to think creatively about how to achieve your family goals.
Set Money Goals Together
Another great idea is to set money goals together. These can be family money goals like a vacation fund or saving up for a large purchase for everyone or money goals for them, like saving up for a toy or electronic device.
Setting savings goals can also be a lead-in to discussing the difference between saving intentionally and using your money for necessities like paying your mortgage and buying groceries.
Teach Kids the Difference Between a Want and a Need
Before you even begin to get your kids involved in finances or budgeting, it’s important to teach them the difference between something they want and something they need. According to an article in U.S. News & World Report, parents need to show kids how the family prioritizes their spending on things like food, rent or mortgage, and healthcare, before they buy toys, go on vacation or spend on any other non-necessary needs.
The More Visual the Better
It is important to have a visual reminder of finances for both adults and kids. Strive to get your family on board with budgeting. Adults typically use spreadsheets, budgeting apps, or a notepad to manage money, for kids this could include a goal chart or something more colorful for smaller kids.
It could be fun to create a chart with $0 at one end and the amount of your savings goal at the other. As you set money aside for the goal, have your kids color in the chart, showing how far you’ve come. And if creating a chart doesn’t work, you can also try using an envelope system.
Be A Good Role Model
Kids learn their money habits from watching their parents. That means it’s important that you also have a healthy relationship with money. If kids see their parents splurging on nonessentials and then struggling to pay monthly bills, they’ll think that behavior is normal.
When your kids see you making regular deposits to a savings account, comparison shopping, or paying bills as soon as they’re due, they’ll understand the importance of managing money carefully.
Give Family Allowances
Having a regular amount of money to spend will help your family, especially kids learn the basics of money management and responsibility, which is a valuable skill for all age groups.
Give out allowances either weekly or monthly, And make sure to teach them how to divide the money they receive, so that they learn the importance of balancing spending and saving! Ideally, a percentage of each allowance should go into a savings account.
Having your family on board with budgeting is paramount to your financial success. You should always have a plan for your money and the way to do that is through budgeting. The tips above are a great starting place to get the entire family onboard. Find a budgeting method that works for your family, stick to it, and you’ll find financial success.
Also, try to make learning about budgeting and saving as fun as possible, so that your children are enthusiastic about helping you reach your family’s goals.
Is your family on board with budgeting?