WHY SHOULD YOU TALK TO YOUR FAMILY ABOUT FINANCES

It is important that the whole family is aware of the financial situation they are in. It helps in making conscious decisions. Read on to know how to talk with family members about money.

WHY SHOULD YOU HAVE A TALK WITH THE FAMILY?

- There are more people who spend and fewer people who earn

- For example, what your husband earns may be spent by you, your children, your in-laws, etc

- It is important that everyone spends responsibly and understands the financial situation

COMMON PROBLEMS IN FAMILY FINANCES

- There are chances of overspending as there is limited income but more expenses

- Members don't discuss needs and spend as they like

- There is no fixed budget and there are many emergency expenses like medical expenses

- Financial goals such as investment may not be reached due to overspending

HOW TO TALK?

- Make it a habit to discuss your financial situation every month. Sudden discussions may cause fear and worry

- You don't have to give exact details or numbers. You can talk about financial tips, budgeting, saving, etc

- Understand that every person has a different point of view. Respect and openly discuss points

- Discuss everyone's future plans and how as a family you can achieve it

- It is very important to be cool and not fight or get angry as money is a sensitive issue

INVOLVE YOUR CHILD

- Give your child a monthly budget and ask her to make a plan for spending and saving

- Check it and explain if anything is wrong

- Teach them to differentiate between wants and needs

- Each time you give them pocket money, she should put some amount in each section:

*Spending

*Saving (for their wants)

*Donating (to learn sharing and charity)

*Investing (to learn to save for the future)