I like to buy big-ticket items – new computers, new televisions, new lawn mowers.Â My wife likes to buy small-ticket items – and lots of them.Â We have two children (and a third on the way) and both of them like stuff – bubble gum, crayons, toys, dolls, video games, etc.Â So, how do we, a family full of ‘spenders’ – manage to reduce debt, save money, and live on a budget?
Me – Daddy, Husband, Budget Creator, Grocery Shopper, Planner
As I’m sure you can figure out, I’m our family’s ‘money nerd’.Â I like to crunch numbers, create graphs, develop systems, pay bills, and balance checkbooks.Â So, I handle the day-to-day management of our finances.Â I make sure that my wife has money in her checking account and cash for monthly expenses.Â I buy most of our groceries and I handle transfers to our savings and retirement accounts.Â I’m the one who casts the visionÂ – and does the research – and reads the books.
My Wife – Mommy, Wife, Organizer, Social Planner, Household Manager
My wife is the best Mommy that I know – and a large portion of her time is spent managing our household and caring for our kids.Â She has ‘budget veto power’.Â I create the budget, but she has free reign to change it as she sees fit, based on the real-world needs of our family.Â (In three years of living on a budget, she’s never actually exercised this ‘veto’ power.Â We are pretty much on the same wavelength.Â But, if she ever felt that I was being foolish or difficult, she has every right to make a change.Â It’s not my money or her money, it’s our money.)
How we work well together –
Like I said, I’m good at creating plans – and creating a vision for our future.Â My wife, on the other hand, is great at keeping things organized and running smoothly.Â So, I spend my time thinking about the big things, those things that will help us one year, five years, ten years, and thirty years down the road – and I spend time, each day, working on the details of those plans.Â But, I also struggle to focus on the little things that really help to save money – and that’s where my wife does a great job.Â We’ve found a good balance between long-term planning and day-by-day living.Â And, we’ve learned the power of the word ‘WE’.Â We are debt free.Â We are saving for our retirement.Â We are buying a new lawnmower.Â As I’ve mentioned many times before, when you read the word “I” on this blog, feel free to replace it with the word “We”.Â Instead of arguing about our finances – we have have agreed to work together, living within the constraints of our budget.
Our kids and money –
I’ve tried, on several occasions, to institute a system of ‘allowance’ or ‘payments’ for the work that our kids do around the house.Â But, to be frank, at this point, our kids pretty much do what we ask, without expecting payment.Â As the kids get older, I’m sure we’ll move towards a chores-list with payments, but, for now, we just don’t need it.Â Our kids receive money from grandparents for their birthdays and various holidays, and they are free to spend that money on whatever they want, after setting aside a percentage for giving and saving.Â Instead of focusing on money, we are focusing on responsibility – caring for our toys, turning off lights, being thankful for what we have, and honoring Mommy and Daddy when they say ‘no’ or ‘yes’.
We try to avoid fixed roles, but we do know what we are good at and where we need to improve.Â I like to cook and shop for groceries, so I do those things for our family.Â My wife does a great job of cleaning our house and keeping things in order.Â My daughter is quiet, and she helps keep us focused on family things – playing games, drawing, watching movies.Â My son, he’s Professor-Inquisitive, and he keeps us on our toes – constantly looking for inexpensive ways to learn more about the world around us.
Frankly, we spend a few minutes, each day, talking about our finances, and then we spend the majority of our time thinking about ‘important’ things – our family, our church, and our friends.Â Once you take control and decide to manage your finances, you’ll be amazed by the number of issues that seem to disappear (or fix themselves).Â Now, instead of borrowing our way into misery, we save for the things we want – and then we actually enjoy buying them.
I recently purchased a surround-sound system for our den.Â I’ve been saving for it for several months, and when we recently took a trip out of town, I found the system that I wanted, and I bought it.Â Instead of worrying about how we were going to afford it or feeling guilty because ‘we spent too much money’ – I’m sitting here watching the Final Four in brilliant high definition and blazing surround sound.Â And, I don’t feel like I wasted any money, because I made a well thought out, researched, intentional purchase.Â Â The same is true about EVERY purchase we make.Â We have a budget.Â We live by that budget.Â We talk about what we are saving for and what we want to buy.Â We sacrifice for our futures, and, together, we make purchases that we can enjoy, right now.
7 thoughts on “Getting The Entire Family Involved With Managing Our Finances”
I can relate to the I spend on big ticket items, she spends small ticket items – in large quantities. It makes for a dangerous combination, and one that we had to get control of to get control of our finances.
Wow. That sound a lot like how we run our family financial planning. I create the budget, yet my wife has an ‘open checkbook’ for whatever she needs. That way she does not feel controlled by the budget; even though she never actually makes a large purchase without discussing it with me. I think many people struggle with budgeting because they are afraid their spouse will use the budget to control them. The ‘open checkbook’ policy that we have allows us to get over that, and lets my wife feel comfortable discussing all money matter with me knowing that I am not trying to control her – but only trying to better the future of our entire family. In this way, she is very appreciative of my initiative to lead our family into the future.
How nice to make a major purchase with peace of mind! After years of guilty buying habits, I can’t wait to be in that position!
Great post. I really enjoyed this post, though I’d suggest that you never move to a pay-for-chores system. Most money experts suggest that this doesn’t work and that an allowance should be used as a tool to teach money smarts. You already seem to have your kids doing chores as part of the family and it’s probably good to keep it that way. Congratulations on making that happen, by the way. BTW…do you try setting specific goals with your kids? It’s worked well for me and wanted to know if it’s worked for you. In addition to my website, you can also check out my blog at teachkidsmoney.blogspot.com.
Great read, NCN. No kids yet for us, but I’d sure like to end up where you are. Seems very balanced and satifying. Congrats on such a great situation. Thanks for sharing.
Awesome! Very inspiring post 🙂
I’ve heard excellent issues about both of them and i currently do not own either 1 but the owner with the cosmetology school i go to has a ghd and she loves it. If i was to buy 1 it would be the ghd.
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