Money Attitudes and the Family

One of the major battlefields in families is the issue of handling finances. Fully one half of couples that seek professional counseling report serve money problems as a major issue. Only a small percentage of these couples are in financial difficulty because of inadequate income or too little income. Many are in financial difficulty because they have been immature and unrealistic in their attitudes about money.

Before any family can take a realistic view of money, they must have a financial plan for their financial endeavors that is mutually agreed upon.

Spur of the moment purchases for instant gratification, get many families into trouble. And other purchases can be status conscious purchases, as we attempt to keep up with the neighbors, although their goals and circumstances may be considerably different than ours.

Still, other families need to have their egos boosted and buy unneeded items. And financial success has become equated with unnecessary and materialistic items. A new car when a used one would perform as well, a gold watch that keeps time as well as a less expensive one and the list goes on and on.

Money also becomes a weapon of aggression in a battle for family dominance.

While we must recognize that money does constitute problems in many families, we must remember that for every problem there is a solution. The following are some items that can help:

• We must realize that money is a resource and not the source. It is a tool to help you reach your financial goals.

• Track expenses of everyone in the family. Even the small expenses. You cannot effectively manage money if you do not know where it is being spent. Once you know where it is being spent, you will see where changes can be made in spending.

• Be realistic in making financial decisions. Figures do not lie. If the numbers do not support a new digital TV, why are you buying one?

• Set both long and short range goals for your families’ finances. Write them down make them plain and refer to them often. Make your goals SMART. (Specific, Measureable, Attainable, Realistic, and within some designated Time frame)

• Keep in mind that the family income is our income, the families, and should be treated as such.

• Discuss your attitudes and emotions about money and expenditures openly and honestly as a family. Listen to your mate and children…communicate!

• Both husband and wife should understand every intricate detail of the family finances. We are all unique individuals and the attitudes we have about money can contribute to a solution to a financial problem. All the budgets and spending plans in the world will not compensate for the ignorance of a partner in financial matters.

• Credit buying should not result in payments of more than 15% of your income. This means for every one hundred dollars you earn, you should not have more than a fifteen dollar dept payment excluding rent or mortgage and car.

• Do not acquire new debt until you have paid off the old debt.

Remember the amount of your income is considerably less important than the way you handle it. This is true on every economic level! People look to an increase in income as the way to solve their financial difficulties. Many times the relief is short lived and the real cause of their financial difficulties, bad spending habits, failure to plan, lack of discipline, money attitudes, eventually catches up with them and they are right back in financial trouble. If there is one thing that poor money managers have in common it is the idea that they do not earn enough. Rarely does it occur to them that the real cause of their financial trouble is that they spend on things that do not fit with their financial goals and objectives if they have goals and objectives at all.

When you make deliberate choices about money, with a full awareness of the consequences and a willingness to accept them, you are acting in a mature way concerning money. Keep in mind that money is good for three things; spending, saving, and giving. If you do this right, with your financial goals and plans in mind, you will have the right attitude about money and begin to win with your finances.

Article by Wil G.

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