Creating a Successful Family Finance Plan

Whether you are an old hat at marriage and family or whether you are a newlywed trying to navigate through the new territory of sharing finances, a successful family finance plan is possible if you start out on the right foot. Cooperation from all parties involved in the finances, in particular the spouses, needs to occur. There are occasions when couples do not communicate effectively in matters of money but there are ways to help ensure every can participate and reap the rewards of a successful financial plan.

Here are some tips for developing a successful family budgeting plan:

Don’t Make One Person the Fall Guy
While it stands to reason that there will be one person designated to write the entries in the check book or do the actual math, couples need to work together on all aspects of finances, including balancing the checkbook, negotiating the budget, paying the bills, and making important financial decisions. If the duties consistently fall on only one person, then resentment issues can likely set in. Make a committed effort to working together on finances, no matter how difficult it may be to set time aside together to get the job done.

Use Effective Communication
It can end a good relationship when money issues become the central focus of a couple’s relationship. Starting conversations with phrases such as “you don’t” or “you never” can quickly get you no where. When discussing finances, you need to remain logical and be clear in your communication. Express feelings without anger or resentment that can leave the other half of the couple on the defensive. This is especially true when there are financial problems. Working through these problems as a team is the only way to produce positive results.

Set Limits
While many people would frown on giving each spouse an “allowance”, you should at least set limits about how much money can be spent at an individual’s discretion. Agree on a number that each spouse must seek approval before a purchase is made. For example, a rule can be set that any purchase over $500 needs to be agreed upon by both parties. Include as part of your budget how much you can each afford to spend each paycheck so no one can overspend money that is targeted for other reasons.

Meet Weekly
There can be a lot that happens in personal finances through the course of a busy week. Set aside time each week on a regular basis to go over receipts, expenditures, bills, and upcoming expenses so each party knows where they stand financially and there are no surprises.

Discuss Long-Term/Short-Term Goals
Being on the same financial page is very important, even before marriage. Each person needs to be clear about what their goals are and how they intend to reach each goal. Open and frank discussions are important for future planning. Create a visual, such as a list or an outline, that acknowledges goals and the steps that need to be taken to reach the goals.

Do Reward Successes
Budgeting for a family is no picnic. There is no reason why you and your family can not celebrate small successes by having a movie night or a special dinner at a local restaurant. As long as you don’t go hog wild, your family will appreciate the rewards for hard work and have more incentive to stick to the financial program for the long haul.