Money is already hard enough to manage when it comes to an individual, but what about managing finances for the entire family? Terrifying.
Parents, we got your back. Read on for our take on better money habits for families to adopt.
1) Be aware of you and your partner’s individual relationship with money.
Self-awareness is essential to understand your money habits.
Do you splash cash on impulse at the grocery store? Are you a bargain hunter? Do you tuck away a fixed amount of your salary every month?
Use questions like these and have an upfront discussion with your partner (and children, if you want!) about finances. This way, you can keep each other accountable for self-destructive spending habits, and work towards retirement goals together.
2) Get every member to contribute to an emergency savings’ fund.
The pandemic has made everyone aware of the importance of an emergency fund. If you haven’t started on it, you can start small, chipping in 10% of your income. You want to grow it to about 20 or 30%, depending on your own financial goals. But more is always better when it comes to your family’s emergency fund.
3) Start planning for retirement early. The best time to start was yesterday, but the second-best time is now.
With the rising trend of inflation and the increase in expected lifespan, it’s important to make your money work harder for you now. Look into retirement packages or high-interest savings accounts to park your money. It might sound absurd, but prioritise your retirement over your children’s educational fees. For them, there are options like university loans, scholarship grants, and more. For you, time is limited, but use this knowledge to empower your next steps instead.
We hope this guide to better money habits for families proves useful. Onward to financial freedom, one step at a time.
Cornfield, J. (2019, April 26). What successful couples know about money that you don’t. Better, by Today. https://www.nbcnews.com/better/lifestyle/what-successful-couples-know-about-money-you-don-t-ncna998511
Rose, S. (2020, July 28). 8 Money Habits Parents Should Start Modeling Right Now. OppU. https://www.opploans.com/oppu/articles/money-habits-parents-should-start-modeling/