Do you think you have more patience for handling household finances than your spouse? Are you the one making most of the financial decisions because you’re more financially savvy? Have you ever involved your children in financial discussions? Many important financial decisions are made with the family in mind, yet managing finances often isn’t a shared family responsibility.
To create a financial plan that truly supports the entire family’s dreams, you should make decisions together. However, in many families, one person typically takes charge of the finances. Here are a few tips to help your family become more financially knowledgeable.
When both partners work together as a team, they often lead monetary decisions and encourage the rest of the family to learn and participate. When both adults are positively involved in managing finances, it can enlighten the less informed partner and reduce financial disagreements. A 2014 study found that most marital fights are about money, which can lead to divorce. Here are some tips:
– Discuss your goals and values openly—what you’re working towards, how you’re spending and saving, and how these behaviors affect your goals.
– Set aside regular times to review your family budget and make adjustments.
– Create a plan for discussing spending habits with family members and encourage everyone to share.
– If someone feels left out, consider taking a finance course together or reading a financial book as a family.
– Include children in financial discussions.
A 2015 survey showed that only 25% of kids feel their parents let them discuss money. Not teaching them financial literacy can leave them clueless about personal finance and its core values. The values you instill in them will help them make better financial decisions throughout their lives.
– Let them voice their opinions on family goals and explain how their spending habits impact these goals.
– Discuss any obstacles that might prevent you from achieving your goals.
– Use allowances or monetary gifts to teach them the value of money—help them divide money into portions for donating, saving, investing, or spending.
– Continue teaching them financial lessons so they grow up to be financially responsible.
Seeking help from a professional advisor can also benefit households. Firms focusing on generational planning can bridge the gap between different generations. It’s important for everyone to understand each generation’s nuances and focus on immediate goals as keys to success.
If you’re looking for ways to include your family in financial decisions, keep these tips in mind and watch your family’s financial literacy grow.