How to Make a Family Budget
Consult with your family., Set a goal.Think about how much money you want to save and what you are saving for., Decide how to track your budget.You can track your budget electronically with a spreadsheet or financial software, or manually, with pen...
Step-by-Step Guide
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Step 1: Consult with your family.
Talking candidly with your children about financial planning demonstrates to them the importance of carefully managing money.Tailor your explanations about the purpose (and, later, the results) of the budget to your child’s age and level of understanding.
For instance, children that are aged 10-14 might receive an allowance.
You can explain that just as they have a limited allowance each week, the family as a whole also has limited funds.
Older teens who might have jobs can feel good about how their growing financial independence has left more money for you to pay off loans and prepare funds for college, vacations, and other uses. -
Step 2: Set a goal.Think about how much money you want to save and what you are saving for.
Perhaps you’re saving for multiple reasons like vacation, college, and a new car for your child.
Ask everyone in your family what should be done with excess money.
It's easier for everyone to adhere to the family budget if you all have clear goals and a stake in keeping the budget out of the red.
Check your savings account before setting a budget.
Think about how much you have and how much you want to be saving each month. , Using a spreadsheet effectively does require a bit of a learning curve, but once you know how to use it, tracking your finances becomes easier.
Pen and paper, on the other hand, are free.
Invest in a calculator if you intend to calculate your budget by hand.
To make a spreadsheet, familiarize yourself with a standard spreadsheet program like Microsoft Excel.
Excel provides spreadsheet templates for family budgeting that could be useful when you’re calculating your family budget.
There are also several robust apps available for PC and phones.
Mint, You Need A Budget, and Goodbudget are just some of the handy digital tools you can use to manage your money better., It all depends on you and your family’s level of interest in the family budget.
Whatever schedule you decide, stick to it to ensure you have a budget available at regular intervals.
Make doing the family budget part of your end-of-week or end-of-month ritual.
The budgetary period is the term that refers to how often the budget is calculated. , Don’t estimate; use documentation
-- credit card bills, utility bills, pay stubs, and receipts
-- to tabulate the budget.
If your data is wrong, your budget will be too.
Other expenses might include rent payments, gas, groceries, and dining out.
Encourage your family to keep all bills and other relevant documentation.
You and your family should deposit these documents in a folder located in a central location such as the living room.
That way, when people spend money and get a receipt, they will not misplace it. -
Step 3: Decide how to track your budget.You can track your budget electronically with a spreadsheet or financial software
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Step 4: or manually
-
Step 5: with pen and paper.
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Step 6: Decide how often to calculate your budget.You could calculate and analyze your budget every week
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Step 7: every month
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Step 8: or every other month.
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Step 9: Collect the necessary information.To calculate your budget
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Step 10: you’ll need to know how much your family earned and how much you spent.
Detailed Guide
Talking candidly with your children about financial planning demonstrates to them the importance of carefully managing money.Tailor your explanations about the purpose (and, later, the results) of the budget to your child’s age and level of understanding.
For instance, children that are aged 10-14 might receive an allowance.
You can explain that just as they have a limited allowance each week, the family as a whole also has limited funds.
Older teens who might have jobs can feel good about how their growing financial independence has left more money for you to pay off loans and prepare funds for college, vacations, and other uses.
Perhaps you’re saving for multiple reasons like vacation, college, and a new car for your child.
Ask everyone in your family what should be done with excess money.
It's easier for everyone to adhere to the family budget if you all have clear goals and a stake in keeping the budget out of the red.
Check your savings account before setting a budget.
Think about how much you have and how much you want to be saving each month. , Using a spreadsheet effectively does require a bit of a learning curve, but once you know how to use it, tracking your finances becomes easier.
Pen and paper, on the other hand, are free.
Invest in a calculator if you intend to calculate your budget by hand.
To make a spreadsheet, familiarize yourself with a standard spreadsheet program like Microsoft Excel.
Excel provides spreadsheet templates for family budgeting that could be useful when you’re calculating your family budget.
There are also several robust apps available for PC and phones.
Mint, You Need A Budget, and Goodbudget are just some of the handy digital tools you can use to manage your money better., It all depends on you and your family’s level of interest in the family budget.
Whatever schedule you decide, stick to it to ensure you have a budget available at regular intervals.
Make doing the family budget part of your end-of-week or end-of-month ritual.
The budgetary period is the term that refers to how often the budget is calculated. , Don’t estimate; use documentation
-- credit card bills, utility bills, pay stubs, and receipts
-- to tabulate the budget.
If your data is wrong, your budget will be too.
Other expenses might include rent payments, gas, groceries, and dining out.
Encourage your family to keep all bills and other relevant documentation.
You and your family should deposit these documents in a folder located in a central location such as the living room.
That way, when people spend money and get a receipt, they will not misplace it.
About the Author
Teresa Harvey
Committed to making lifestyle accessible and understandable for everyone.
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