Every parent wants the best for their family, including giving them the best start in life. As parents, you want to facilitate children’s development with the best education costs, the need for sufficient facilities, for getting married or buy a house.

If you want to make this dream come true, you must start by making a financial plan for your family. Managing finances especially for the family is not easy. You need to think about a strategy and manage the income you get so that you can manage it properly to meet all household needs.

Some of the things below are the right ways you can manage your family finances.

Monitoring Family Expenses

If you do not monitor your family’s expenses, it is easy to lose track of where all your money is going. If you want to stick to a budget that suits your family’s income, track your expenses. You can do this by drawing a simple spreadsheet on a computer or you can make a book of expenses and record it every day.

To start monitoring your daily expenses, you can start trying it by entering the sections below:

Date – the day something is paid for

Amount – how much money was paid

Item – what you buy

Method – how you pay (by card or cash)

Reason – was the purchase a necessity or a luxury?

Additional notes – comments (maybe if this was a casual purchase or not)

You can record things like weekly grocery shopping (multiple items) as one item. By keeping track of expenses, it will be easier for you to know what’s coming out of your account each day of the month.

Create Financial Goals

When you are struggling from month to month just to pay the bills, saving money can seem very difficult to do. Whether you want to save for your child’s college tuition or want to set aside money for your retirement, setting financial goals is an important step in protecting your family’s future.

Therefore, no matter how difficult it is, you must start making financial goals and try to follow those goals. You can achieve your financial goals by saving or increasing your source of income in various ways, for example, a side business or investment.

Freeing Yourself from Debt

Going into debt can overwhelm you, especially if your debt has accumulated. However, managing debt is easy if you set realistic goals. A debt management plan can be included in your budget so that it can pay off credit cards, mortgages, and get rid of your debt altogether which will take some time.

You may not be able to pay off all debts right away, but you can start by making a realistic plan to work towards paying off existing debts. The budget you create will show where your money is going. You can look at your unnecessary expenses so you can then identify where your money really needs to be spent and which can be reduced.

Control of Expenses on Food

Food is one of the most important needs for everyone. However, many families often underestimate calculating the food budget because they think that it is important and understand the level of waste on food. In fact, by controlling food expenses, your family’s financial budget can be helped.

You can reduce your family’s food costs with a well-planned food budget. Save money on groceries with ready-to-use grocery lists from your family’s favorite recipes. Discuss together with your partner what needs to be purchased for daily meals and what needs to be always available at home.

By doing this, you will always know what you need. Your kitchen will stay filled without having to waste money. Also, think about places or shops that sell cheaper groceries.

Saving Emergency Fund

Arrange your budget and prepare funds to deal with emergency situations. You can choose to make payments to your emergency fund, treating it like a monthly bill.

There are many reasons why those of you who are already married or planning to have a family soon need emergency funds, including:

  • If you have lost your job and still need a way to pay for something
  • Something expensive in your house breaks (such as electronics or a car)
  • Someone in your family needs urgent medical care
  • You and your family are forced to move where you live because of work

An emergency fund is not just for the bad things that happen. Sometimes you can also use an emergency fund for positive things, such as finding or creating a new job.

Have a Saving for Entertainment

Apart from creating an emergency fund, a good and planned budget can help you have savings for family entertainment. You can use the excess money to entertain your family either soon or in the long term.

The money savings in this section can be used for:

  • Family vacation
  • Family day
  • Household items for the family, such as a new TV or computer
  • Eat outside together

Sometimes we forget that a budget does not have to be all about boring expenses. Spending time doing fun things with your family is just as important as making sure your financial situation is stable.

May 10, 2021

Check out other Versions of this Article!
Check out other Versions of this Article!
Confused about choosing where to invest for children? Through this article, you can see and compare 4 investment alternatives that you can choose as an investment in children’s education by adjusting them to your financial condition as a parent.
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