No amount of budgeting or financial decision-making will be effective unless your entire family participates, contributes, and cooperates. Here’s are some tips on how to help your family develop a positive relationship with money.
Many parents make the mistake of not giving children an allowance, saying that the parents will do the needful to take care of their needs. On the other end of the spectrum, some parents indulge their children with a lot of allowance and do not keep a track of the way they use it, resulting in the children developing unhealthy spending habits. Ideally, parents should give children an allowance suited to their age and requirements, and hold the children accountable for how they spend it. They should keep a track of their expenses just like the rest of the family. This creates a sense of responsibility and accountability in little children.
The budget that you draft should include the needs and requirements of your entire family in it. Preferably, apart from the whole family’s budget, it would be ideal if we draft budgets for every individual in the family and hold the individuals accountable for how they spend their money.
Vacation is that period of time, when for a few days, weeks or months, you relax and take some time to recharge, ridding your mind of all the pent-up tension and stress of our busy lives. At the same time, planning the finance for vacation is an expensive affair. You can make the best use of your time and resources and get the best result out if it, if you plan vacations well ahead of time..
Last but not the least, the most important way through which you can get your family to have a healthy relationship with money is by paying yourself first. “Pay yourself first” refers to prioritising your savings and investment accounts. By putting money aside for your long-term needs and expenses, you are “paying” your future self. Encourage your family to save money in the present, so that you can live a secured life in future.
All the best