Family Day Fun and Finances
Okay, even if incorporating the two, fun and finance, is a bit of a stretch, what if we changed the narrative around money as a family and began with open conversations about making money a family affair?
Discussing how you spend, save, and give money as a family can be insightful and liberating.
Not everyone is struggling, but when people are hurting financially, emotions can be raw, which can be unclear to family members who may not fully understand some of the challenges you may be facing.
Have you ever considered sitting down and chatting about money in an age-appropriate way?
Here are a few ideas on how to go about talking to your family about your finances.
1) Have the talk, the money talk, early when your children are young. It is tough to say no financially, even if you can afford to say yes. However, understanding and appreciating money is a critical life skill. When chatting with parents or a spouse, where there is a misalignment around money, it can get messy. I think finding common ground is key.
2) Create a space where everyone has a say. Be supportive and inclusive. The goal is to get buy-in. For example, we agreed to order food only once weekly as a family. You can participate in one external team event per season or change how much money we spend on family and friends.
3) Keep it educational and engage in fun activities to help everyone learn about finances. This Family Day, we agreed that no money would be spent, and everyone was responsible for creating a free activity in which everyone could participate.
4) Set financial goals as a family, such as saving for a family vacation or a computer for the children. Please be very clear and get buy-in from everyone so that when you have to say no to spending, everyone knows why.
5) Budgets have a bad reputation, but they work. They aren’t carved in stone and can be adjusted as life dictates. A popular budgeting technique like the 50/30/20 rule to prioritize needs wants, and savings helps some.
6) Establishing an emergency fund is necessary, best if never used, and invaluable if you need it. The goal is to have three to six months’ worth of living expenses tucked away in a savings account or near cash equivalent like a GIC.
Family Day may be significant in launching the discussion, but it shouldn’t be a one-and-done conversation. Gently step into the conversation in a calm and neutral environment, and be honest. It should never be a blame game. Facts and figures are always better than vague assumptions.
Whether you are talking to your partner, spouse, children or parents, money is one of the most significant sources of tension in families. Open discussions can help to set clear expectations and reduce misunderstandings.
Why not give it a try? Your financial peace of mind will thank you.
Happy Family Day.