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Some of us love to shout the F-word, while others softly gripe and stare at their shoes: FINANCES.
A few interesting facts I've learned along the way to personal finance enlightenment!
1. Financial difficulties are the number one reason marriages end in divorce. Wasn't it The Beatles that told us love is all you need? Apparently, you also need a handle on finances as a family.
2. The average American family owes $7,000 in credit card debt. If we focus on families in debt, they owe an average of $15,000.
3. The estimated magic income number that allows us to feel warm and cozy about our finances? $75,000 annually.
4. If you are currently 30 with a newborn child, the cost of a 4-year college degree at age 18 will be $442,000.
5. An emergency fund should contain 3-6 months of living expenses, but the average savings account holds a little over $2,000.
Are you feeling depressed? Don't be! This is just a kick start to get you thinking about where you are in the world of finances.
During Carrie and my first family finance meeting, we had to stop due to the sheer frustration and exhaustion of talking about finances. It is a very hard conversation! I scoured the internet for a financial meeting template and came up short. There was nothing out there! Well how are we supposed to have a meeting when we don't know what we are doing?
Here is a small guide I came up with to organize our financial discussions and may be helpful if you and your family are not having routine conversations about money.
Step 1: Track everything. We signed up for Mint.com. This gives you an easy way to see how money comes in and out without all the long-hand.
Step 2: Set a specific time for your meeting. We decided on monthly meetings. We review the previous month and look ahead to the upcoming month. If you are in a dire situation with your finances, a weekly review is in order.
Step 3: Set goals, both long term and short term. Where would you like to improve? This helps the whole family steer towards the same end point.
Here is a spreadsheet to review your finances in detail if you enjoy the nitty gritty.
"Personal Monthly Budget" Available on Google Drive Templates by Vortex42.com
If you just ran in fear of Excel spreadsheets, here is a simplified version from The Peaceful Mom.
I created a template for our monthly family meetings, which is also available for download HERE. If you have multiple savings accounts or would like to include retirement accounts, please add those as well.
Do you hold routine financial meetings with your family? Do you involve your children? What tips do you have for others?
