Money And Your Family: Good Financial Habits

There is no bigger drain on finances than having a family. You probably don't want to admit that, but it's true. Kids are expensive. Without kids, you could probably afford to lay down some car payments for a new Maserati. Well, maybe that's taking it a little far. At least a DeLorean. And maybe with a DeLorean you could go back in time before you had kids. Kidding, kidding. Kids are great. Now that the kids are out and about, you've got to figure out how to afford everything they want. Your daughter wants a new Polly Pocket set. How many Pollys can one kid have? Your son wants to go to little league. All right, he needs cleats, and a new glove, and a uniform, and money for baseball cards, video games, whatever else. Every day there's something else the kid needs. Spoiling Your Kids Rotten. Look at it this way: if you're being more careful with your money, you're killing two birds with one stone. Not only are you saving up money on a monthly basis, but also you're not spoiling your kids. Frankly, kids shouldn't get whatever they way, no matter how much they beg and plead. In fact, if they're begging and pleading, that's exactly the time not to pull out your credit card. Sure, little league's a fine expense. However, he doesn't need a baseball glove made out of fine Mongolian leather. Basically, cut out the fat. And let your kids know they can't have every single thing they want. One of the more dispiriting things a kid can say is, Oh, dad says we can't get that because we can't afford it. Makes you feel three feet tall. Don't necessarily couch in terms of being able to afford something. "We can afford it, but there's value in saving money." Something like that. Kids need to learn the value of money or they're in danger of becoming brats. Spreading the Wealth. You're a kid at heart too. You have your eye on that new iPhone. Is there anyone in the known universe who doesn't? You have to practice what you preach. You can't always be bringing home new toys for yourself and expect your kids to listen to you when you say no to buying new toys. The kid's going to resent you. You have to set a family budget It seems sort of callous to put it in these terms, but a family is a business. A family can make a profit or go under according to how it's run financially. Check your credit report. Now that shows fiscal responsibility! Figure out how much you owe every month on basic expenses and see how much you have left over for frivolous things. Again, as much as you might want to buy your kids everything they want, or even for yourself, this could backfire, as your kids? needs are just going to get more and more expensive as time goes on. Soon they're going to want a new car. College tuition for $30,000 a year. Is that a joke? You're not just looking to save money on a monthly basis, but for everything that's going to come years down the line. Financial directory