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March 5, 2021
Discussing family finances isn't always easy, but it's essential to avoid any unexpected surprises. We look at ways to involve everyone, including children, in these discussions.
Too often, when families talk about finances, it means dealing with some tense moments. “How much did you spend on that?!” Conversations can be more like unplanned outbursts that do more damage than good. It's hard to talk about finances with others. We understand that. Families that do have conversations about money regularly, though, are often able to steer clear of these kinds of situations.
To achieve financial harmony, communication is key.
Being on the same page as your partner or other family members can help avoid conflict. Set a time each month to check in with each other and hold one another accountable. Track your progress to stay motivated. Consider scheduling family meetings to learn more about financial topics like credit cards, short- and long-term savings options, retirement savings, credit scores, student loans and more.
Budgeting will be an essential. You may need to work out childcare expenses or child support payments, along with all the other financial needs. If you’re accommodating adult children or parents, lay all cards on the table and discuss combined incomes. Decide which family member will pay for what. Or, in the case of an adult son or daughter who is unexpectedly without work, talk about what tasks each family member can take on to keep the household running smoothly.
Chances are you’re both bringing your own debts into the marriage. You may also already have joint debt. Now is the time to figure out whether you’ll combine debts or keep them separate. Take time to go over all your debt numbers and plan to pay it off. Debt can seriously hinder your savings efforts and derail your financial goals. If you’re paying down debt and making little progress, compare your debt relief options or speak to a Licensed Insolvency Trustee for advice.
More people in the house means more groceries, electricity, hydro and transportation costs. Talk about money–saving strategies that will help cut costs such as shorter showers, shopping smarter, carpooling, etc. Eventually, these become small financial habits that can have a big long-term impact. This is also a good time for spouses to talk about long, medium and short-term savings goals as well as setting up an emergency fund.
A change in family situation is a good opportunity to go over some financial basics with the kids. Sometimes, it’s a good refresher for parents too. Before making a purchase, ask kids to think about whether it’s a necessary expense or a want. Teach them the importance of healthy spending habits, saving up for wants with allowance and birthday money and finding the best value for things they need.
March 5, 2021
Discussing family finances isn't always easy, but it's essential to avoid any unexpected surprises. We look at ways to involve everyone, including children, in these discussions.
