Category Archives: Family finance

How to manage your family finances

family-finance

family-finance

Managing your family finances is becoming more and more important – especially at a time like now.

I know that every month I have to make sure my money lasts me – and make sure I have enough to cover the cost of food, travel, clothes and any emergencies.

So, in these tough economic times, what can we do to make sure we are in full control of our family finances?

  • Well, this is what I do:

Budget:
Creating a budget is essential if you want full control of your family finances. By creating a budget, you can keep track of exactly where your money is going on a monthly basis. When you can successfully keep track of your money, you will be able to highlight areas in which you could save yourself money – for example, do you need to buy your lunch at work every day? Or could you just make it at home?

In addition, by budgeting, you will be able to plan out how much money you will be able to spend each week. (for more information on finances, click here)

Shopping list:
It has never been more important to plan out what you need to buy. If you don’t plan what you’re going to buy – how can you save money at the store? You will just end up buying things you don’t actually need!

So, before you go, search your cupboards and find out what you actually need. If you are feeling particularly organised, buy in for next week too – and buy a few tins of food that will last a while, but make sure you buy cheap!

When you head into the store, keep your shopping list in your hand. I do this, and it really works. With my list in my hand, I am always reminded of the things I need, and don’t end up buying things I don’t need!

Kids’ pocket money/allowance:
All parents want to give their kids a good upbringing. However, in difficult financial times, this can often be hard – so planning their weekly pocket money/allowance is very important.

You can take steps to keep their weekly allowance fairly small, by finding things for them to do for free – basically, if they don’t need to spend the money, don’t give it them!

Kids will be kids and will probably ask for more, but it’s important that you teach them the value of money while they’re young – that way, they (hopefully) won’t grow up to end up in loads of debt.

Carry cash, not cards:
If you carry your cards around with you, the chances are, you will lose track of how much you have spent and may also lose track of how much you have left to spend too.

However, if you simply withdraw a set amount of money from the bank at the start of the month and divide that by four to give you your weekly spending allowances, you will be able to see how much you can spend when you go out.

Plus, by carrying cash around with you, you will be able to see exactly how much you have spent, and how much you have left to spend.