PERSONAL FINANCE MANAGEMENT

Financial wellness for the whole family

Managing family finances should not be an exclusive topic for parents or older children, younger children can also learn about this and contribute in different ways to the financial peace of your home. Here are some tips to get them involved.

Regardless of how many people make up your family (two, three, five or more) or whether they are older or younger, to properly manage the income received it is important to involve all members so that together they make the best decisions.

How can you do that?

1. The first thing is to build together the family budget, to do so they must identify what are the income and what are the basic or fixed expenses (housing, services, education, food transport), non-basic (entertainment and fun) and those that are obligations such as debts; of all these it is key to know the total.

They must also define, according to the possibilities of each one, who or who will bear the expenses, for example, if there is an older child who generates income, each month can pay for water, electricity and gas services.

If there is one or more children in the family, so that they also participate, you as a dad, mom or older brother can tell them in a didactic and simple way what a budget is and what it is for.

2. Define the monthly budget of the family, they can set a financial goal, for example: a larger house, the university education of the children, a vacation to the beach or outside, among others. To achieve this, each month they must save a certain percentage of income.

Having a clear financial goal, as well as motivating them to save, will help you and your family better plan spending and consume in a more conscious way, so they won’t spend more than they have.

In order for children to understand this better, you must teach them that money is not unlimited, that to get it they take responsibility and therefore, not always everything they want can have; talk to them with the truth and explain with affection and patience why it is important to learn to spend well, to save and to share.

3. Educate by example. If you have younger children who see that you spend and spend without control, they will surely ask you for everything they want because they know that you will buy it; if on the contrary you are a responsible consumer, you have a habit of saving and you talk with your children of good financial habits, surely they will learn from young people to

4. To get children more involved in household finances, you can also give them a piggy bank to save some of the money they get so they can buy the toy they want, the bike, or what they want so much.

You can also propose challenges that in the short and medium term will represent savings for the family such as reducing energy and water consumption, removing unnecessary products from the market list or any other.

Taking these tips into account and applying them in your home will help you to better organize family finances, involve children and achieve greater well being and peace of mind for all.

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