One of the aspects of family life that people rarely enjoy
dealing with is to set a family budget.
It can be an arduous task filled with disagreement. One family member might see entertainment as
a fundamental part of the budget, while another views it as a luxury that isn’t
needed. Finding a common middle ground and sticking to it will guarantee
A budget is essentially a summary of lists of intended
expenses and expected incomes. The aim is to strike a balance between income
and expenses. Setting up a family budget can be different from one family to
another based on their specific needs. While one family might feel content to
save a certain percentage of their income to buy a car another would be
satisfied with the idea of keeping their older vehicle and dedicating those
funds to an annual family vacation. And not all family budgets are set in place
by the family while sitting at their kitchen table. Some family budgets are
designed by experienced financial planners and agents. But the intention is
always the same, planning for present expenses and also preparing for the
When you set out to set a family budget it’s
imperative that you consider all of the financial needs and goals of each
individual and also the family as a collective whole. Therefore it’s important
to include the cost of items such as:
Children’s college funds.
Saving for a new home or home improvements.
Saving for the unforeseeable, such as car
repairs or loss of employment.
Every conceivable expense needs to be calculated
as you work through the process to set a family budget. Naturally the adults will have the last say
as they are generally the ones contributing the income to the running and
maintenance of the household. Children’s
needs have to be addressed as well, including the possibility of having to
purchase items such as prescription eyeglasses or braces. If you don’t have a medical insurance plan to
help supplement the cost of these items, they can take a fairly good bite out
of your budget.
There are professional financial planners who are
highly experienced in working with people to set a family budget. They generally do charge for their services
and if you are trying to save money they can be viewed as either an investment
or perhaps just an expense if you feel you can handle the process on your own.
Another alternative might be to research any workshops in your area that are
designed to help when it comes time to set a family budget. These can be either low-cost or no-cost and
the information is extremely valuable.
Going through the motions to set a family budget
can save you a substantial amount of money over time. No one likes to fall short in the financial
department and not be able to provide for their family. With a reasonable budget in place, money
worries can be a thing of the past, it just takes some planning and