Manage Family Finances through Communication

We are living in an era of consumption. On home shopping, they stimulate people’s consumption desire with the signs, “Almost sold out” or “Limited offer.” You only need one click to have an item delivered to your house. People say that they need to at least have a cup of takeout coffee that costs more than a meal. People can’t help but spend money as there is so much temptation to consume wherever they go.

But we can’t have all we want to have or eat all we want to eat. Even if you satisfy your consumption desire to the fullest, it doesn’t necessarily guarantee you a happy life. If you want to obtain happiness—the ultimate goal of life, it is more important to run your family without wasting money. Among family members, conflicts caused by different sets of values in finances or hardships caused by lavish spending or bankruptcy pushes happiness away from them.

There is a higher possibility that such situations can happen if the family lacks communication, or only one person manages family finances arbitrarily. When all the family members trust each other and share information about their family’s financial situation and about their plan on spending, then their family economic stability can be gained and the family spirit that they are on the same boat will become stronger.

Having a conversation is the way to reduce domestic quarrels

An employment website Career surveyed 278 married workers about the reasons for domestic quarrels. Financial problem (25.5%) was selected as the No. 1 reason. When couples quarrel over money, they do so mostly not because they don’t have enough income, but because their financial senses are different. For example, if a husband likes saving up money whereas his wife likes spending money, the husband will get upset whenever he sees something his wife bought, and the wife will feel upset at the husband’s reaction. When they happen to quarrel due to the difference of financial sense, they need to respect each other’s background and personality instead of blaming each other, and try to compromise through conversations.

Whoever is able to take better care of money can be in charge of the family finance. However, just because someone is in charge of the family finance or makes (more) money, he/she must not exercise power over the other. Whoever is in charge of the family finance must let the spouse know its details regularly. When a big amount of money has to be spent or an expensive item needs to be purchased, they must discuss it with each other. Things always happen where they have to spend money unexpectedly such as family event expenses, medical expenses, public holidays, etc. Therefore, if husband and wife discuss those matters and save up money in advance, they can be prepared for sudden expenditure. Additionally, they need to discuss what they spend the most on and how to cut down on expenses, making an expenditure plan. If they have enough time to talk about the family finances like that, it can also help ensure smooth communication among the family members.

How about discussing the situation, supposing your family financial situation becomes difficult due to something unexpected? You can also talk about your past financial hardships. It is also helpful for you to go grocery shopping together and know prices in the market. It is good to talk about the status of the family finances and financial tendency, but it is better to postpone it when one of you is being sensitive.

Build a child’s sense of economy from childhood

When a child becomes three or four years old, he knows that money is a means to buy something. A child’s sense of economy needs to be built correctly from childhood. The sense of economy is closely related to personality, too. Moderate and discreet use of money strengthens the ability of adaption to surroundings. However, if a child gets used to owning whatever he wants, he finds it hard to endure even small hardships. All parents want their children to enjoy an abundant life though they may eat less and spend less. However, if such desire is excessive, it can be a distorted way to express love and can have a bad influence on their children, preventing them from developing sound awareness about consumption.

A child subconsciously learns from the actions of his parents. If the parents value money too much, their child will regard money as the most valuable thing. And if the parents judge other people on how much money they have or use money as an invisible weapon, then their child will also do the same. Parents need to let their child know that money is not something that he can get as long as his parents open their wallets, but that it is a result of his mom and dad’s hard work. The parents also need to let their child know that people cannot own everything they want, and that he needs to distinguish between what they want and what they need, and that he should be responsible for what he spends. Teaching those things in detail, the parents should show their child an example of discussing things and making reasonable decisions.

When your child pesters you to buy something he wants, you need to understand his desire to have it and help him understand why you can’t buy it for him, instead of just saying no. Try to talk to him by asking, “Is this toy car different from the one you have?” or “If you buy this, I won’t be able to buy you the other thing you wanted to buy,” and make it a rule not buying any other items except the ones on the list, and show him an example of following the rule. Always keep in mind that shopping is an act required by needs, not a means of compensation.

Don’t think your child does not need to know your family finance since you lead it. It is better to share a big picture of the family finance. This helps your child think of the family rather than his desire, and he can also feel the sense of belonging.

Strengthen the family economy with the habit of frugal consumption

One thing you need to be careful about is excessive consumption and impulse buying. Excessive consumption does not simply mean purchasing a brand name bag or a luxurious car. It is to exceed the limit of consumption or to spend money on less necessary things, so that you can’t have enough money when it is necessary. A wise person knows how to spend money earned by labor. Patient efforts are required to have a habit of frugal consumption, considering your family finances, but you will be happy from its process and result.

Know-how on frugal consumption

1. Write a household account book

If you always write the household account book, you can keep the track of your family finance and can see where money is wasted. If you can’t get accustomed to writing it, you can use a convenient app on your cell phone.

2. Pay in cash

A credit card causes excessive consumption because expenditure is not noticeable immediately. And if the parents use a credit card too often, the child may misunderstand that they can spend money without limits. Therefore, it is better to show the child an example of paying in cash and receiving change.

3. Don’t buy anything just because it is cheap

If you buy something just because it is cheap though you neither need it nor planned to buy it, then you may regret it later. Don’t let signs like “Buy one, get one free” tempt you to buy it. Think first if you really need it.

4. Check before opening your wallet

Check if you can buy it cheaper, if there is anything at home that can be replaced instead, if you really need it, and if you can really afford it.

5. Minimize the number and time of shopping

When you go grocery shopping, make a list of items that you need to buy, and buy only the items on the list. If you have no plan to buy something, try not to watch TV home shopping networks or browse shopping websites. Moreover, do not consider the mall as your family picnic place.

6. Buy only as much as you need

You may think that it is more reasonable to buy a large amount because it is cheaper that way, but if you have a lot, you will not try to save it and it may also expire, which can result in excessive consumption.

7. Don’t follow the trend

If you buy clothes, following the trend, they don’t last long. When you buy clothes, think how much you will wear them and try to find the style that fits you, rather than the trend.

Quite often, we see people lose their precious people by being too greedy for money or wasting it inefficiently. There is no doubt that money makes our lives convenient. However, it should be used according to need, and you must not be controlled by it. The best way not to be controlled by money is to be content and thankful. Don’t give a hard time to your spouse for not making a lot of money. If you don’t have much food, be thankful that you still have some food to eat. If you don’t have a car, be thankful that you can stay healthy by walking. Then your family will be full of happiness and your family finance will be well managed.