Financial management: a family matterSubmitted by Agrawal Associates on May 2nd, 2018
May 3, 2018
Financial management is often one of those areas of the house that gets relegated to one individual or another. “My husband does that” or “my wife handles those” are typical responses when individuals are asked about their financial situation.
While you don't have to be the one who is actively managing all of the various financial aspects, there is still a level of importance for each adult in the household to have a role in the finances.
Not sure how to divide up the responsibilities? Start simply with an active manager and an engaged family member.
This person is the primary facilitator of your household finances. Not only are you staying on top of the regular finances to ensure everything stays on track, but you're focused on taking necessary action to ensure the best decisions are being made.
From paying monthly bills on time, to researching why a phone bill has jumped in price — and negotiating with the provider for a lower rate — or staying up to date on the latest investment trends, the active financial manager of the house has his or her finger on the pulse!
Just because you aren't handling the day-to-day finances doesn't mean you should put your head in the sand and carry on swiping your credit card without a care in the world. Are you aware of the bigger picture? Do you know how much money is going out versus the amount coming in to the household?
As an engaged member, simply having a clear sense of your financial situation allows you and your family to make smarter spending decisions and reduce the likelihood of over-indulging with funds you don't actually have.
Getting the kids involved
The children may not need to know when the mortgage is due or be up-to-date on investment trends, but teaching children about the value of money from an early age will help set you and your family up for success. Talk to them about the importance of saving money to purchase the item they want, take them to open a bank account, or start a donation jar to encourage them to put money aside for others. Depending on the age of your children, there are many avenues and opportunities to start the learning process.
For more information on managing household finances, don't hesitate to reach out at 403-727-2800 to schedule a complimentary appointment.