Today’s money hack is about the benefits of involving your family in the household budget.
We’ve talked about involving your family budget before and how it leads to a sense of ownership that makes it easier for them to accept lifestyle changes required to increase savings. Today we look at the idea of family involvement in the budgeting process in a bit more detail.
Instead of just keeping your family in the loop, you could go a step ahead and actively involve them in the budgeting process to benefit from the collective input towards the financial welfare of everyone. It may take some time for them to adjust to the new group activity but an open talk about money matters with the family can lead to several benefits:
- Your family can contribute some good/creative ideas related to saving money,
- The budgeting process can become a fun family activity that teaches the importance of team building and compromising,
- A sense of ownership, as we discussed in a previous article,
- It can cause your children develop good money habits that will help them grow into financially responsible individuals. Read more about this in the report, Children and Money: Teaching Children Money Habits for Life by University of Minnesota.
Of course, you must first decide if your children are mature enough to handle serious financial details, or whether you should simplify the concepts of money for them. Each family has a different culture and ultimately you have to determine for yourself the level of participation that is optimal in your case.