Easy resources and instruction to increase security now and instill financial confidence in your children tomorrow
You already know how much money affects more than just your bank account if you’ve ever slept through the night fretting about an unforeseen payment or how you’ll pay for back-to-school shopping.
I’ve discovered over the years that having enough breathing room to enjoy the life we currently lead while simultaneously accumulating stability for the future is what I consider to be a healthy financial wellbeing.
Stress related to money affects everything. Your marriage, your health, and even your level of presence with your children may all be impacted. However, by safeguarding your financial well-being, you also safeguard your relationships, sense of security, and the prospects that lie ahead for your family. Because of this, I’ve made our family’s financial well-being a top priority, and I want to share the resources, knowledge, and tactics that have enabled us to strike a better balance.
Why Families Need Financial Wellbeing
We are more present and less anxious when we are financially secure. I see it in myself: I can concentrate on assisting with homework, supporting my family at sporting events, or just having dinner together without that constant anxiety in the back of my mind when I know the bills are paid and our savings plan is on track. Everything in the house feels lighter.
Resilience comes from safeguarding your financial well-being. Although life may give us curveballs, we can bounce back more quickly if we are better prepared.
Creating a Toolkit for Financial Wellbeing for Your Family
Financial well-being is something I prefer to think of as a toolkit. Building a solid financial foundation requires the correct tools, just as you wouldn’t be able to fix an automobile without them. We have these financial instruments in our toolbox to ensure that we are prepared for both the unforeseen and the commonplace.
Your Family’s Spending Plan
One of the most crucial resources you can use to improve your family’s financial security is your budget. Consider your budget as a means of providing direction for your finances rather than as a constraint. Keep track of what’s entering, leaving, and where you want it to go.
Involving the children is what makes the largest difference, regardless of whether you use apps or a spreadsheet. Teaching them the distinction between “needs” and “wants” is one easy way to increase their awareness of how money functions. Your children will have more opportunity to build a foundation of knowledge that will serve them well throughout their lives if you can involve them in activities that are appropriate for their age.
The score of your credit
Consider your credit score to be the financial standing of your household. It can have an impact on a number of things, including your interest rates and eligibility for a home loan.
Examine yours a couple times annually and approach it as though it were a grade you wish to raise. Additionally, it is an excellent opportunity to teach older children that things like timely bill payment and avoiding credit card maxing actually important in the long run.
Your Emergency Savings Account
Life occurs. Children become sick, cars break down, and household appliances seem to malfunction at the most inconvenient times. Having a “rainy day” reserve helps prevent those unforeseen expenses from turning into serious financial problems. Start small, even if it’s just setting aside $20 occasionally or setting aside a certain amount each month from your paycheck.
Your Retirement Account
One of the best gifts you can offer your future self is retirement planning, even though it may seem far off, particularly while you’re busy raising children. Setting money down in a retirement plan might help it grow dramatically by the time you want to retire, even if you feel like your total contributions are little today.
We have candid discussions regarding our 401(k) and IRAs, and we use these discussions to educate our children. A Custodial Roth IRA can be a fantastic approach to teach your teen how to begin investing for their future early on if they work a summer or part-time job.
How to Preserve the Financial Security of Your Family Long-Term
Possessing your financial toolset is only the beginning. Long-term financial well-being protection is the true difficulty. Over time, consistency is the most important factor. Establish easy-to-repeat routines that will help you advance without feeling overburdened.
We have made “money check-ins” a regular part of our routine, much like we do with our doctor’s visits. We get together once a month to quickly review our finances, budget, and any impending bills. It keeps us in sync and keeps little problems from turning into major ones.
When it comes to money, there’s always something new to discover. Look into financial literacy books or podcasts. You may even wish to impart some knowledge to the children that is age-appropriate. We occasionally discuss topics like interest rates and the rationale for pricing comparisons at the store. Little teachings that are frequently repeated eventually become ingrained.
It’s the little things that add up. You are moving in the direction of a more stable financial future each time you save a little dollars, decide to make dinner at home rather than acquire takeout, or review your spending plan.
If your path to greater financial well-being seems convoluted or burdensome, don’t give up. Begin modestly. This month, choose one technique from the financial wellbeing toolkit and incorporate it into your daily practice. Build from there.
It takes a lifetime to safeguard your financial well-being, but each move you take now will contribute to a prosperous future for your family.
SOURCE: ART OF HEALTHY LIVING
