PLAN YOUR FAMILY BUDGET CAREFULLY TO AVOID FINANCIAL EMBARRASSMENT

After the exchange of the marriage vows a young couple begins to realize that it takes more than love to maintain a happy home. If the couple had savings before marriage, they are surprised to see how quickly these savings dwindles as they attempt to meet the basic needs of their newly established home. They find that their assumptions, before marriage, that there would be a substantial amount left over from their earnings were too optimistic. The wedding presents have helped a great deal, but there are some essential things needed that their friends and relations did not supply. Before they know it the young couple finds that they are spending more than they earn.

At first this disillusionment in financial matters is taken in good grace. But when it persists, then, there is anxiety, as they realize that their expenses will tend to increase rather than decrease as time passes. The clothes they had in reserve at the time of their marriage soon began to tear and would need to be replaced. Then as they considered the possibility of having children, they virtualized their expenses mounting rapidly.

Under any circumstances financial problem in a home constitute a major consideration. The amount of money available to a family and the way it spent determine the standards of living of that family. Thus the consideration of money is basic in the establishing and operation of all family policies.

Inasmuch as financial problems loom large and ominously even in what seem to be an average family situation, it can be worse in families in which there are complicating circumstances. In all families financial problems is potential social dynamite, which, if not properly handled may endanger the integrity of the family unit.

One of these complicating factors that worsen the financial problems in newly established home results from a situation in which the wife was used to a higher standard of living than what her husband’s limited income can now provide. This is a situation that should have received attention during the period of courtship.

Many young men have mistakenly assumed that they are being smart in asking for the hand of a rich man’s daughter in marriage, not realizing the difficulties the young woman who was accustomed to a standard of living far higher than what they can avoid would face. Under this circumstance, once the glamour of the wedding ceremony and the honeymoon have passed it is quite natural that the woman would ask her parents to come to her rescue.

As a result, parents-in-law problems may become superimposed upon the financial problems, and the young husband, even though doing his best to cope becomes embarrassed either because of his inability to maintain the standard of living to which his wife is used to or because of his feeling of insecurity if the wife’s parents choose to subsidize his income.

Likewise tension may develop when the reduction of purchasing power forces itself upon the young woman who was gainfully employed before her marriage but now chooses to devote her time to homemaking. Prior to marriage she was able to plan her expenditures and savings without having to give in to any interference. She was entirely in command of her own affairs and could purchase clothes and any of her needs without consulting anyone else. Now she is surprised to find that the cost of maintaining a home swallows up such a huge sum of her husband’s income that her purchasing power seems suddenly reduced to the barest minimum.

When a wife has more money than her husband, we have the situation in which the wife may more or less unconsciously force her husband into an attitude of comprise in financial matters. The husband is rightly spoken as the head of the house, and even though this should not give him any reason to resort to unreasonable domination of the home, it is desirable that he should be the leader in those matters which involve relationship between
n the family and the outside world. The macho man finds it hard to become adjusted to a situation in which his influence is entirely subordinated to that of his wife. Consciously or otherwise, it gets him down to play the role of performer on the second fiddle.

When some wives realize that they are unable to purchase those things which their hearts desire, it is more natural for them to think in terms of increasing the family income than giving up their cherished items. There are only two rational ways to imbalance a family budget: to increase the income to met the expenditures, or to reduce the expenditures to fit the income. Most of the women will assume that their husbands should be making more money for their families. Consequently, a common complaint which a wife makes against her husband is that he lacks sufficient enthusiasm to earn enough money to support the family adequately.

It is true; however, that there are different type of husbands – some are ambitious others are indolent. Some women are known to be extravagant so a wife’s inability to nurture her expensive taste cannot be used as a yardstick to judge her husband’s industry or ambition. If a husband is doing his best, he is entitled to the sympathy and cooperation of his wife in cheerfully accepting whatever circumstances may be imposed upon them by inadequate funds.

The husband could even become discouraged because of his wife’s lack of appreciation. Before making complaint that her husband is lazy, the woman should be sure that she is fully aware of the circumstances under which the man is struggling.

The counter-complaint which husbands tend to lodge against their wives is that they are spendthrifts and lack an appreciation of the value of money and their efforts. Here again the actual situation may be simply a cover for some deeper lying difficulties Just as there are all kinds of husbands so there are all kinds of wives- some extravagant and some frugal.

Perhaps some wives tend toward extravagance as a means of rebelling against their husbands’ unwillingness to take them into their confidence in financial matters. It is possible that their experiences in financial matters are so meager that they do not understand the basic principle underlying the necessary balance between income and expenditure. In either of these instances the problem should be subject to an establishment of absolute confidence between husband and wife to the extent that the two share the responsibility of maintaining financial equilibrium within the home.

Any couple living beyond their income, and incurring debts they have no means of paying, are burning out their self-respect and the respect of others, their peace of mind, their integrity, the character which is their capital, and inevitably, their chances of advancement and success.

The family relationship is a cooperative venture. If the couple has agreed that the husband should work while the wife looks after the home, then the money which the husband earns is not his to possess. Thus it is clear that the handling of funds should be mutually discussed, with the wife having a say.

How to get enough money is a very important issue. It is a universal problem. Most families never have enough money to meet their needs. Human wants and desires have a way of keeping always ahead of the source of income. Money is always scarce. The basic thing every family should direct its attention has to do with the best method of handling and controlling the money that is available so as to bring the expenditures within the limitations of the available funds.

A school of thought is of the opinion that the problem can be solved by the establishing of a family budget. So the first practical step is to establish a workable family budget. A family budget should not be a theoretical or idealistic sort of document. It should be a practical, workable document stating how the family funds should be appropriated. An important part of any successful budget plan is savings. This will help to prepare adequately for the future. The best homes are not necessarily those in which the most money is spent. The best homes are those in which the members are willing to compromise in order to ensure unalloyed happiness in the homes.

The couple must plan a time to sit down together and go over financial matters. They need to decide together what spending, saving, and budgeting plans are best for the family. Identify ways each of you can adjust or change to meet the common goal of financial responsibility.

In today’s materialistic world, you are always bombarded with advertisements encouraging you to have many wants. Some people cannot differentiate these wants from needs. They therefore feel they must have everything even when they can ill-afford them. You should not join this group of people. Make your purchasing decisions based on wisdom and sound financial practice, and carefully avoid decisions based on emotion or self-indulgence. If your husband’s income cannot accommodate a new car, make do with the old one until a new one is feasible. No matter what your family income is, you must put a limit on your spending in order to stay within the budget.

The family should have a budget based on income to control expenditures just like a large organization which operates under a budget control system. Every couple is different. In some families, the wife is the keeper of the finances; in others, the husband is; and many, money matters are handled equally by both spouses.

Saving is one of the principles of a successful marriage. In the absence of relevant knowledge of what to do in preparing a saving program, the counsel of your banker

should be sought to assist in setting up your program of savings. It is not how much you earn that matters; it is how much you are able to save. A good wife should be an excellent budgeter and a thrifty spender. When you establish a systematic program of savings, you are investing in your future and that of your children. You need to save some money for your children’s education.  Costs of education are increasing at a rapid rate. You may not save or invest adequately unless you do so systemically. The sooner you start, the less stressful it will be when the time comes for your children to go off to school.

A smart plan for the future will also evaluate the transportation needs of the family. The couple needs to discuss you they need two cars or one will do. If available transportation allows the couple to avoid the purchase of a car, they should be wise to do so. Several practical matters need to be raised when assessing the purchasing of a car: available fund, public transportation system, distance of office from home, arrival of children, and so forth. If a car is needed it will be wise to begin setting money aside for the purchase of the car.

Retirement may seem many years away to young couple, but prudent financial planning includes a retirement plan. Reliable financial planners are available for responsible counsel on the matter. Finding some insurance coverage for a young family in case the husband or wife becomes incapacitated is important.

Sound financial planning will also include meeting the medical bills of the family. As the family enlarges, the need for adequate coverage under any circumstances makes health consideration a vital issue in planning for the future. Many jobs provide health insurance or pay the medical bills of their employees. If this does not exist, such matters should be discussed and solution put in place.

The care of your aging parents will need to be planned for. To know and understand how your spouse feels about the finances for such need can be revealing and significant. No one can plan foe all events, other situations will be addressed as they occur.

Maintain as little debt as possible. Whatever financial mistakes you may have made in the past, start today to make amend by being responsible with the resources available to your family.