How to Have a Discussion About Money With Your Family

Talking about money is awkward for many people. One of the main reasons is that we are taught to deal with money matters in private. We aren’t even comfortable talking about money within the family. But, it is very important for your immediate family to know where you stand financially, especially if you are the sole earning member of the family.

If you do not share your money problems or goals with your family, and they do not know if you are struggling, it can easily become a cause of stress. Time-to-time discussion about your finances and financial planning can help you destress and also feel empowered to take new actions.

What if one day you have to file for bankruptcy and it comes as a total shock for your family. You haven’t shared anything. You kept taking loans to keep up pretenses even within your family. Now, because they think everything is going well, they are not going to change their lifestyle, and you can’t blame them if you don’t share with them. 

Now, as the article on 24Cash, about the ultimate guide to building your credit after bankruptcy, says, rebuilding your credit after bankruptcy might feel like climbing Mount Everest. It might not be easy, but it is achievable!

If you have never had the time or will to share your financial woes with your family before, this might be the best time. You have to consider the process as an occasion to start afresh. One of the tips in the article is to get help, and you might as well get that from your family, honestly.

These are some of the things you should discuss:

  • Financial priorities and goals
  • Creating a budget and a spending plan
  • Non-discretionary costs
  • Spending on wants and needs
  • Having an emergency fund
  • Having a sinking fund
  • Using credit
  • Future financial goals

As parents, you should talk to your children about money matters. Involve them in some decision making so that they are wise about finances from a young age and do not struggle later. 

Teach them about the value of a dollar and talk to them about the difference between “want” and “need.” Teach them about ways to start saving and earning more even if they have meager pocket money. You can always learn ways to save, even if the income isn’t that high, at a young age.

Spouses need to have an open conversation about finances as well. If one of the partners is earning, then the conversation seems to be easier. Many people have found it difficult to discuss finances when both partners earn.

Talk about your spending habits, saving goals, and financial ambitions. Being honest and open about your finances will help you have better financial health and will help you not have any problems in the future.

Final Thoughts

Talking to our families about finances should become a normal thing because money is an important part of our lives. We are not taught about the basics of building our financial health in school. So, the only place that we can learn about it from a young age is home. Money shouldn’t be a taboo subject. Make it approachable and build your financial health together.

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