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Couples family budget

by: Musafir | last updated: August 21, 2009
Category: Personal Finance | Tags: Couples budget, family budget, savings on family
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Couples family budget It is never too late to start planning a budget for your family. The best team to make the plans are indeed you and your spouse. The simple reason being, you both are the ones going to live your life together and the only financiers and decision makers when it comes to how to spend your money.

Why is there so much emphasis on budgeting with spouses? It is because one of the major reasons for fallouts and problems in a marriage is Money. No matter how well funded you may be, there never will seem to be enough to fulfill all expenditure, medical bills, emergency funding and down payments. These issues are bound to come up. So a couple needs to have a good plan to overcome any sorts of financial crisis that might come their way.

Here are some tips on how to make a composite family budget with your spouse.

1. Lets talk about the Money, honey!!


Decide on a fixed place and time to discuss about the money matters. Use this time only to discuss about each other's individual financial goals and listing them down. Talk about each other's concerns and fears and what each one thinks should be done.

Do not use this as an excuse for personal attacks, or any other kind of arguments. Set the ground rule to remain calm while discussing and putting each other's point down in a composed manner.

2. Track down individual expenses

This is the most essential step while planning a family budget. Couples individually spend money, so need to keep a track of it. Be it paying mobile bills to having lunch with friends, night-outs, business trips or any other money related activity.

This helps to know how much expense is borne by each partner. Also how much money needs to be kept aside for each other's expenses, how much can be cut down etc. Keep in mind that each one is part of the team, so do not use this as a reason for blaming games.

3. Lay the cards on the table


When discussing money matters with spouses, do not keep back anything. Be honest about your expenses, incomes and spendings. Trust is the important factor of a strong relationship.

Too many people, however, keep financial secrets from their partners. Instead, commit to discussing your financial positions openly. Disclose how much is owed on credit cards, other outstanding liabilities, and your joint and separate assets.

4. Plan on a combined budget plan

Separately, each person should write down his or her short and long term goals. Then use these plans and wishes as a starting point for deciding on mutual goals. Priorities may include building up an emergency savings fund, getting out of debt, planning for a new home, starting a family, making major purchases, saving for retirement, or going on vacation. Next, develop a budget to help you meet these goals.

5. Be realistic about your family's expenses

As you develop your budget, understand that emergencies and unexpected expenses will come up, often at the worst possible time. Be diligent about making regular deposits in your savings account for these unexpected expenses. A dented fender is bad enough without having to fuss over money for the repairs.

Determine which accounting approach is best for your family: joint or separate checking accounts and joint or separate savings accounts. Most couples find it easier to have one checking account for paying bills. But, if you do have separate checking accounts, decide who is responsible for paying which bills. Remember, nothing is set in stone; if one way does not work, try another.

Agree on what you are going to teach your children about finances. Allowances can be a dicey subject for parents. Does one parent think the kids should get paid for doing chores and the other think chores are just part of being a family? Have a united front when it comes to presenting financial issues to your children.

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