A family I know has recently started to take control of their finances. They realize that if they go to more money in their IRAs, provided that the money must come from somewhere. A look at the money they have spent over the last three months identified, car payments, rent, housing other related elements, and the purchase of food. After these categories, it is difficult to determine where the money went. Both parents with the family credit card and do not record what thePurchase was for. Her two teenage children from his mother the money "Stash" and you forgot to write what was spent.
It 'obvious that everyone in the family to spend money without having to answer for it. And that means no one is responsible for monitoring where the money goes. About a month ago, had a family meeting to talk about the need to control their spending. The mother was agreed that their "hiding place" was a practice outside, before the children were performedborn. E 'was easy track to pass the time in which only the parents in the photos were taken. But now the "Stash" is a source of great loss in the budget.
As a result of this meeting with the family, mother, now responsible for the continuation of what is spent "Stash" for. And dad is responsible for pursuing what the credit card used for the '.
It did not take long to see how the money was better or worse, than what was spent. This was "Stash" issued by the childrena bite to eat fast food, when with friends. Children were also buy clothes and accessories with the money. His daughter had her room renovated with money from the "cache." And his son just bought a new iPod with the money from the "cache." To buy in the "old days" Mom, "hiding" for food, gas and share the family car, and an occasional visit to her hairdresser.
Last week came up with the family, another meeting to discuss the needControl over family finances. It did not go well. Dad was not submitted in a position, with all the spending decisions, it will be for final approval. Mom wanted the money, they could spend on what I wanted. The children were worried that they need money for the events at the school for the money and would have to wait until they spoke with their parents. Nobody wanted to lose control, have their individual ability to spend money they were.
Mom pointed out,all expenses were, individually, to things for a lot of money without spending item has a plan. Some examples of the last three months: The child was small donations for "good causes" in the school and to support the earthquake victims in Haiti, and various other causes. It took a bit 'to figure it out, but donations to charity, nearly $ 200. The $ 200 is, in addition to donations for charitable purposes, parents were included in the family budget. In anotherSo, for her daughter $ 70 for new plates for his bed full furniture upgrade. And his son has spent $ 50 for a skateboard "new", even though his grandfather bought a new card before during a shopping trip a few months.
Dad had done his part, too. The new TV in the basement had to be charged to your credit card if you can find the amount for sale at Best Buy. He thought it would be nice, a place where children can invite their friends to watch a movie. This is not to explainDad as justified the addition of the sports package for cable TV service.
Identify how each family member had to spend money on their own, have decided to establish where the family wants money to spend. Each person is given a list of money in the past month. Then, list the issues that have come to expect in the next month. The family is to this cooperation. In one month we will meet again to review, want to spend as each member of the family money.Parents want $ 500 a month to add your IRA, and $ 500 to be set aside to increase their emergency fund. The agenda for the next family reunion is to identify which types of expenditure are reduced up to $ 1,000, which can be raised for the IRA and emergency funds to find funds.
This family is together to develop a better use of their money. Getting everyone to understand and work together will be a slow process. But everyone learns from the discussion. In a family where no onePerson gets to ask all the treasures. Everyone wants to have the feeling, some say, the family decides what to do.
At one point, mom and dad to find a way to give every child in control of their individual issues - perhaps through the establishment of valuation allowances on their spending needs. You see the first steps to teach children how to get through the budget discussions in the family. How young people find work and earn their money, they need to know how money is spent. Whatlearn from the finances of their parents', they will ask if you are hoping to spend their money.
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