A growing family has a lot of needs and expenditures. If you don't know how to handle your income, you will end up lost in debt. It is very important to manage the family finances well so that you can save money. In order to resolve this issue, you have to prepare a weekly/monthly budget. You can keep track of both incoming and outgoing money with the use of a budget planner. This will allocate the total earnings of the family and divide it into necessities that need to be bought or paid. If used correctly, this will cut back on the wants and focus more on the needs of the family.
Planning a family budget is not as hard as it looks. You simply have to know what to put in there so that you can divide it into sections and organize it. You have to tabulate all your income and family expenses in this worksheet for a specific period of time so that you can keep track of your expenses. Proper money management is the key to survive the financial recession. To prepare a family budget, here's what you need to do:
- Be ready with a pen and paper so that you can write everything down. If you prefer to do it on the computer, you can go to financial software like Microsoft Money. You could also use a budget calculator. The budget plan should work around your paydays, especially if your wages are given on a weekly or monthly basis. Write down your income first and make sure that it is accurate to the cent. Next, you can enter all the expenses. Paper bills can be useful to track down your expenses. Try to remember everything so that it will be well accounted.
- The budget plan should include 6 categories. You have to label the categories for your family budget. There should be columns for the Total Monthly Family Gross Income, Housing Expenses, Weekly/Monthly Car Expenses, Weekly/Monthly Debts, and Monthly Miscellaneous Expenses.
- Rent or mortgage payments should be also included along with taxes, utilities and any form of household repairs. Under the Car Expenses, you have to enter gas, car insurance, maintenance etc. Under Weekly/Monthly Debts, you could jot down credit loans or the weekly/monthly balance that is due for payment. Under the Miscellaneous Expenses, you can jot down the family wants. You can list the grocery expenses, cable bills, haircuts, manicure or pedicure and other incidentals.
- Once all the expenses have been entered, you can begin adding them up by category. Sum up everything from all the categories. You can then subtract it from the gross net at the very bottom. Check the results to determine if you have spent below or above your means.
- Print out a copy of the budget planner for the family to see.
Educate the children about the importance of using money wisely. This way they can contribute to the family budget by spending less and saving more.