Thursday, February 9, 2017
Big Family Keep Getting Bigger? Keeping Your Finances In Check
It’s hard enough to keep things afloat and your financial standing solid when you’ve got any children, but it can get all the more difficult when your family keeps getting bigger and bigger. Naturally, you will have reviewed whether you can afford to have any child before you made the decision to do so, so it’s unlikely that the basics - food and housing - will have to be too severely compromised. Still, it’s wise to have a stringent plan in place to make sure things don’t unravel. Nothing can put more undue stress on a family like money, after all!
Establishing the Rules
If you’ve got plenty of kids, then you’ll need to set the ground rules so everyone knows what they’re dealing with. Your family budgeting probably didn’t account for everyone to stay in the household until they’re in their mid-thirties. It’s pretty simple - when they reach a certain age, they have to contribute X amount of money to the household. It can begin as a small amount, a token gesture to teach them the responsibility of providing, before working up to an amount that makes a real, positive difference. You might also have a rule that says by the time they’re 23 (or whatever), they need to be in the process of moving out of the family home.
To the Future
You're responsible for the family’s money, and it’s important that you keep an eye on the long term growth. This is as much for your own sake as it is for your partner’s and children’s. Speak with a financial expert on occasion to get an honest assessment of your finances; they can advise when you should be selling your home - or not - and so on. Be sure to choose the right estate planning advisors well in advance, as an unforeseen accident can complicate financial matters hugely - especially when a large family is involved. Keeping an eye on the housing market and deciding when to sell the family home and downsize is also important, as this will free up a lot of cash and boost your financial standing.
Their Rainy Day Money
A large family doesn’t necessarily mean that you won’t be able to gift your children savings to get them started in life, it just means that you’ll have to start the saving sooner. Put just a small amount of money into your children’s individual savings account each week can result in a large chunk of money when it’s multiplied by eighteen years or so. You may also speak to a financial advisor about what they best way to present the savings to your child is, as there may be options that will keep the money growing.
Keeping them in the Loop
Of course, if times ever get tough then you should be willing to open up and talk to your family about the state of your finances. Many families keep money issues far away from the children, but by keeping them in the loop you’ll be taking unnecessary stress off your shoulders and teaching about them financial matters.