Family Budgeting... A Family Affair

When you have to come up with a family budgeting plan there can be big problems. Most people can come up with a terrific idea for a budget only to find that it fails in the execution. Take heart because this happens in most families and if you manage to tweak things just a little you can get the whole crew involved and excited about your next budget plan. When everyone is on the same page it makes it much more likely that your new budget will be a success.

Consider your budget to be a business proposition and create a clear vision of your idea. Have a heart to heart with other family members and honestly discuss the financial problems you are having and the financial changes that you want to accomplish.

If you just open up and let others know about the bills that must be paid or the college tuition fund that needs to be started they will understand why they need to join in the family effort. Keeping everyone aware of what is going on financially with the budget will help them stay on track. This means that you will be much less likely to watch a sudden spending spree offset all of your hard work. Kids really like to feel a part of the family spending plan. You wil be surprised that when you make your kids aware of the family budgeting needs, how they will rise to the occasion and want to help out.

Some families create a list of expenses for each member of the household. Then you can sit down as a team and identify which expenses can be eliminated. This is a great way of helping each family member participate and they can get a better idea of their personal contribution to the family budget.

Many children can beg money on an almost daily basis. Most of the purchases they have in mind are completely unnecessary. Allot an allowance to each child and let them create their own personal budget from this limited amount of money. They will soon understand the need to save and appreciate money when they do not have a daily source of seemingly endless funds.

I highly recommend the book "Debt Proof Your Kids by Mary Hunt. It is a fabulous book that helps you put your kids on a salary, and puts them in the drivers seat with their spending and saving. We have used this book in our home and it had done wonders for the unnecessary spending with kids.

A good way to jumpstart family budgeting is to limit your spending each week. When you have placed a ceiling on the amount of money you can spend you will learn to prioritize your needs and will soon do away with those items that only waste your hard earned money.

You can help your family save more money by doing away with some of the biggest “budget busters” that affect most households. Lets' talk about some of them.

• Dining out is a big expense but most families engage in this practice. When you cook meals at home and eat as a family you save money, eat healthier foods and can share time together. If your family still wants to go out, consider limiting the amount of times in a month. It will make the family appreciate those special times more. Consider just going out for the dessert, which is a lot cheaper and a big treat.

• Even routine items like daily newspapers, magazines or coffee and soda can add up to hundreds of dollars over the course of a year. Target these types of wasteful spending habits and eliminate them from your family life.

• Place the money you would have spent on these items in a bank and watch how quickly your fund will grow. Grab a big jar and have your family all contribute their loose change. It will be fun to see how it adds up and give your kids a math lesson at the same time!

• Another famiy budgeting idea...Limit unecessary driving. This can be a family saving idea that you can use. Find the quickest, most direct route to where you need to go and use it. Instead of many car trips combine multiple errands into just one drive. This will save you gasoline dollars and also decrease the overall expenses involved in driving a car. Try to carpool for your kids activities, this helps everyone involved, and the kids love the interaction with their friends.