From sharing our daily routines to making important decisions in life, we tend to share everything with our loved ones. We consider their views no matter what and plan our decisions accordingly.
However, most people avoid involving their families when it comes to handling finances. But even if they involve them, they do not discuss financial matters so much in depth.
Discussing financial affairs and matters with family is often considered unimportant and unnecessary.
We believe that it indeed is a very important thing an individual should do. Discussing financials with your family will help you avoid falling victim to certain financial scam. Moreover, it spreads awareness regarding any financial scams that could possibly ruin someone financially.
One such scandal that the people of the UK are still dealing with is the infamous PPI mis-selling scandal. However, initially most people weren’t even aware about any such policy been incorporated alongside their loan, mortgage or credit card statements. Ever since the PPI mis-selling scandal news started to surface, people are look for ways to make a successful claim and get a compensation.
Making your family aware about such financial scams can save you and your family from the headache. Apart from this, we give you three more reason why involving your family in financial matters is essential.
1: It creates awareness among the children
As we all know, today’s generation is very smart and are quick learners. So it is beneficial to teach your children finances at an early age. Schools today are also training children regarding personal finances. However, it is your responsibilities as parents to make them a part of family financial decisions, especially the ones that will affect them.
It is essential that all parents infuse the value of money in their children, no matter what the family’s economic status is. While most parents want to provide their children with the best education, it is imperative to involve them when creating a financial plan for the said goal.
Remember, children tend to learn a lot by just observing their parents. Financial discussions will create curiosity in their mind and help them understand the family’s financial situation.
The earlier you create a financial awareness among your children, the less likely they are to make mistakes when they grow up.
2: Financial Independence
We do not recommend that you involve your family in handling all the daily finances. But it is essential that you make them a part of the discussion while planning monthly budget and expenses.
Moreover, you should allow your spouse and children an opportunity to handle a part of their personal expenses (if they are not doing so already). This not only creates a feeling of being involved in the financial matters and contributing towards family financial affairs but is also creates a sense of financial independence among them.
Almost all teenagers use mobile phones. What you can do as a parent is, give them a budget for the usage and let them pay for their own expenses from their pocket money. This helps them understand the importance of financial planning and budget at a very early age. Thus, it is easier for them to handle their own finances when given the responsibility.
Moreover, it is your duty to pass on all the vital financial information to the family members. This avoids confusion and stress in case of any future financial issues. Keep it a habit to be honest with your children when it comes to finances. No matter what your experiences are, be it favourable or unfavourable, it will be a lesson for them.
3: Team Effort
It is takes a lot of hard work and discipline for a family to accomplish the financial goals that are set out. It is important to conduct meetings with your spouse and children every month to determine the monthly budget and review the expenses of the previous month.
If and only if, all the members of the family put in equal efforts to accomplish the said financial goals, then the financial objectives of the family will be met. Keep it a habit of discussing and developing a plan of action together. This will increase your chances to accomplish the financial goals.
Without team work between the family members, all the said financial goals and dreams might never come true.