In family life, as a rule, not only joys are shared, but also difficulties, including financial ones. Independent living means certain responsibilities and the need for proper planning of all joint actions. The same principle applies to the management of family money. It is important to plan your expenses correctly, keep a constant record of financial expenses and control purchases. Only by observing the basic rules of how to distribute the family budget, you can learn how to save and spend money rationally, which will certainly have the best effect on relationships within the family.
Family budget types. Who is responsible for it
Conventionally, the family budget can be divided into the following types:
- General family budget. With this method of family money management, all sources of income are added up, and the money is spent by all family members.
- Separate budget. This way of doing family accounting involves the disposal of their earnings by each family member, and if necessary, they make common purchases together.
- Mixed family budget. This means that the income of each of the spouses is divided into two parts (they can be different in percentage terms) – personal and general.
The distribution of financial responsibilities for each individual family occurs in each case individually. However, it would be useful to know some of the principles of financial planning, so that it is easier to manage money and you can always maintain financial balance.
Family budget types. Who is responsible for it
Where to begin? Basic principles of financial planning
If you have never kept a budget before (personal or family), at first glance it may seem difficult. However, this can be turned into a habit over time, and the result will be a more rational spending of funds, therefore, there will be more money as income is received. It will be right if you discuss with your soul mate how to keep a family budget, make an approximate list of income and estimated expenses, for example, a month in advance. You can make the necessary adjustments at any time.
Below we present the basic principles, adhering to which you can correctly plan the family budget and at the same time not lose heart due to large restrictions and increasing debts.
Accounting for income and expenses.
This is one of the most important aspects of planning the financial situation in the family, which involves accounting for funds in relation to income received and planned costs (utility payments, loan payments, optional expenses).
Cost planning. It is important not only to take into account, but also to control costs. To do this, it is best to draw up a rough plan for the month, based on the needs and wishes of all family members. If you stick to a pre-designed spending plan, you will soon begin to understand what exactly you can save on.
Prioritize. When planning a family budget, you need to learn how to properly manage expenses. It takes into account the most important cost items: utility bills, food and transport services, the purchase of medicines and other important items.
Optimize financial spending. Some mistakenly believe that saving means spending less money. However, buying too cheap goods, for example, leads to an increase in costs. It is better to pay once for a quality product than to overpay for its repair or replacement later. You can also keep track of discounts and buy the right thing at a promotional price.
Set aside money. If you learn to save and spend money rationally, by the end of the month a certain amount of money will be indicated. You can save it for future purchases or replenish your savings deposit. Even if the amount is small at first, over time it will turn into significant savings.
Look for the best deals.
With proper management of the family budget, you can save even with a credit card. Modern banking products of this type, as a rule, have an extended cash back or a longer grace period (the period during which you can return credit funds without paying interest for use). If you use such offers during their validity, it is quite realistic to spend less on buying the right things.
Take advantage of investment opportunities. When you have free funds after covering all planned expenses, you can replenish your savings bank account with them, invest in the purchase of securities that can bring a stable income in the long run.
Include even children in family budget planning. According to financial experts, children should be introduced to financial literacy from the school bench. So, they will learn how to plan personal finances in the future, how to manage money effectively and save. Thematic games, cartoons, interactive books and special applications are suitable as educational material.