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A Guide to Family Money Management

The rules of family money management evolve as your household grows. Your family members will draw from the same resources so everyone must adopt a solid strategy to keep your household afloat. Help your family get on the path toward financial security. Keep reading to learn a simple way to divide up your family’s resources.

Why You Need Smart Money Management in Your Family

Financial issues can mean trouble for your family. In fact, research shows that financial woes are a major source of strain on marriage. Accordingly, high divorce rates have been associated with poor money management, debt and unemployment. Your commitment to your family must include responsible money management.

But how do you create better finances when money is tight? Start by making a realistic budget and sticking to it. Your family will thank you. 

Manage Your Money with the 50/20/30 Budget

digital family money management

The first step to creating a 50/20/30 budget is to know exactly what you bring in each month. Look on your most recent pay stub and identify the gross income amount. If your paycheck varies, take an average of the past six months’ paychecks to get your average monthly income. 

Next divide the total amount of your income into three categories of spending:

If you can’t find 20% of your income to put into savings, most financial experts recommend that you make adjustments to the flexible spending category, since this covers many non-essentials. You may be able to further cut the “fixed cost” category by eliminating some regular bills, such as cable. 

Finally, make a spending plan for each month and stick to it.

Family Money Management with Synchrony Bank

Good financial habits start early. When your kids are old enough, get them involved with your family’s finances. Include allowance as part of the family’s expenses, then open a Synchrony Bank savings account for your children so they can get in the habit of saving. Your kids might be encouraged as they watch their accounts build with no monthly fees and no minimum balances to worry about.

For longer-term savings, our IRAs, certificates of deposit and money market accounts can help you meet your financial goals. Consult your financial or tax advisor before contributing to an IRA.

For more help with your family’s finances, call Synchrony Bank at 1-844-345-5789 or find us online.

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Sources:

Huffington Post: http://www.huffingtonpost.com/2012/08/29/poverty-and-divorce_n_1826433.html?slideshow=true

LearnVest: https://www.learnvest.com/knowledge-center/your-ultimate-budget-guideline-the-502030-rule/


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