Money is an often-discussed topic in most families, usually centering on, “Where did it go?”More money usually is not the answer for solving financial concerns for most families. 

Roughly 45 percent of working-age households have no financial planning at all due to which over-indebtedness is one of the biggest problems that the families face. The areas that take up the most of a family expense are housing (32%), transportation (13%), and food (16%).

Family money management isn’t too different from managing finances, as a single person, or even as a couple.

It can be tempting for one family member to take on the task of management, and to simply issue orders for others to follow. Involving everyone helps members of all ages understand the family’s shared financial picture—and help achieve shared goals. 

This checklist can help you organize and conduct your monthly family finance meeting and reach your shared money goals together.

  1. A Family Budget: Why is it a good idea?

It’s impossible to predict all expenses, so you might want to make “pots” of money available for certain things each month.

Some simple initial financial planning can help to ensure that the small, unplanned costs don’t send your family financial plan off the course.

  1. Track your spending: 

Track your spending with a spreadsheet, a budgeting app on your smartphone. Add all income and outgoings so you can get an accurate picture of your cash flow...

      Quickly you’ll be able to identify how much your family spends on unnecessary outgoings – cash that could otherwise be used to save or invest for the future.

  1. Cut Your Expenses:

Start with organizing your expenses into categories, mainly - Bills, Groceries & household Expenses, Entertainment and Extra (for everything else).

      Next, you need to dive deep and pinpoint exactly where your money is going. For each category, lower or cut out as many expenses as possible. Then move onto the next category and repeat this process.

        Here are some super helpful tips on cutting down expenses:

  •  Share car journeys

If you drive to work alone every day, you can share journeys either with your family or friends and cut your costs on petrol. It’ll pay off in the long run.

  • Cancel your gym membership

Get on your bike, jog around the park, and lift weights at home. You could even organize regular workout sessions for free with others who want to ditch the gym.

  • Shop in thrift stores 

You can get designer items for pennies; you can find cheap tat and upcycle it for next to nothing, and find one-off clothes you’d never find on the high street. So, if you’re looking to update your wardrobe or buy new stuff for your home, check out the cheaper alternatives first.

  • Cut out the takeaway coffees

Get yourself a nice flask and make your own coffee. If you’re serious about cutting your expenses and you still buy a takeaway coffee every morning, buying a flask will save you at least $80 a month.

  1. Plan for the Future:

Your own retirement and your child's college education are the major investments you should begin funding as soon as possible. But they're not the only things to prepare for. Emergencies are one of the most important things to plan for.

Saving a good three to six months' worth of your regular monthly expenses in a savings or money market account can help you be financially prepared for an emergency. 

  1. Technology for Easy Management:

Not a fan of spreadsheets for tracking expenses and managing money. A mobile application is another valuable money-tracking tool. Try using an app, where you can budget, manage and track expenses, with your family members.

This is just a much smarter, more effective, clear, and organized way of keeping track of your family spending. As you track, be ready to make adjustments simultaneously

Sticking to a family financial goal over the long term is one of the biggest challenges in personal finance. Yet it’s also a powerful tool for resolving financial problems and hitting your most important goals. There are countless advantages of financial planning that come immediately from having a financial plan. From emotional and health-associated benefits to social and financial benefits. It can help you stay on top of your bills and save £1,000s each year.

Let us know in the comment below if you have any other successful steps for managing money that didn’t appear above!