Financial Planning with your Family

Financial Planning with your Family

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Working for a personal financial goal can be difficult. It can get even more complicated in a family situation since there are more members to take into consideration. If a family can work as a team, financial planning can be a breeze. They can inspire each other, make the process enjoyable, and reach their goals faster.

Involving the whole family is an excellent method to teach kids to be responsible with finances. Saving as a family is also a way to strengthen the family bond as everyone works towards the same goal. Budgeting, setting aside extra money and giving up unnecessary expenses will bring happiness in the long term.

Below are a few ways you can implement for your family:

Have financial discussions with your family

The word “budget” can be a little awkward as it suggests cutting back. Instead, sit down together (maybe on a weekend when everyone is present) and discuss your spending plan. Talk about the expenses that are only necessary to your family and look for ways to reduce the unimportant things.

Keep your goals front and center

Consider creating a group chat or a bulletin board to illustrate your savings progress. You may also ask your child to create a colorful chart and then display it in a prominent place in your home. A daily reminder for the car you are saving for or for the celebration of your parent’s anniversary can help your family motivated to save money. 

Choose your words wisely

You constantly hear parents saying “hindi natin to kaya” or “wala tayong pera” which can be confusing as it might imply lack of money for essential things. Instead of saying such phrases, try “may kailangan tayong ibang paglaanan”. This approach can help the children think what should they value and what is more important for the whole family. 

Save and spend together as a family

If your family is saving for something big, make sure to update everyone on the amount needed and how much is already there. When your savings are already enough, make a comparison, find the best value, and seal the deal with everyone’s approval. 

Tell them stories

Stories can also be an excellent educational and motivational way for your family to keep saving. For example, tell stories of your first trip out of the country, share how you saved money and how it felt back then. Keep the family inspired and excited about the things you are saving toward. 

To save money as a family, you must have the same goals in mind. Work as a team and make an effort to implement the ways given above. It might take time and practice, but trust me, everything will be worth it when you and your family get the things you desire!

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