13 Tips for a Financially Healthy Family
1. Track spending to know where your money goes. Identify expenses that can
be reduced or eliminated—and take immediate action.
2. Expect and prepare
for emergencies. Aim for six months worth of expenses set aside in a liquid
account.
3. If housing costs are too high, consider downsizing, renting or
home sharing with friends or family members.
4. Communicate about family
finances regularly with your spouse or partner, and any of your children you
feel are old enough to be involved.
5. Do not try to "keep up with the
Joneses."
6. Explore "nanny share" care, baby-sitting co-ops, and subsidized
daycare. Childcare is the single largest expense for most working parents, so
investigate all reasonable options.
7. Explore whether you would be
financially better off if one parent were to be a "stay at home" or "work from
home" parent.
8. Unless you have endless funds, accept that you can't buy
everything you want for your child. This is often harder than it sounds.
9.
Remember that you are the single greatest role model in your child's financial
education. He or she will remember everything, from arguments about money to how
you deal with debt. Teach good habits now.
10. Pay for unreimbursed medical
expenses and dependent care with pretax dollars using a flexible savings
account. Check with your employer for availability.
11. Commit yourself to
spending within your means. A line of credit should never be confused with an
emergency fund or extra income. 12. Remember—you are not being "cheap" for the
sake of saving a few dollars. You are doing it for the well being of your family
over the long term, and will come out ahead by doing so.
13. Get
professional assistance and support. Contact your employee assistance program
(EAP) for referrals.
Information courtesy of the CIGNA Behavioral website
Source:
Balance Financial Fitness Program. (2005). 13 tips for a financially healthy
family. Retrieved October 22, 2008, from http://www.balancepro.net
