How to Take Care of Family Finances

The role of handling the family finances usually falls onto one of the partners in a marriage or household. While this my work, you need to keep the decisions about finances 50/50. Money is the number one reason for divorce in the United States, so controlling family finances are important. Use these steps to learn how to take care of the family finances as the primary financier for your household.

Instructions

Difficulty: Moderate

1. Sit down with your spouse and set a monthly budget that includes all debts and living expenses, remembering to budget a little emergency money. Budget in money for savings before you pay your creditors. The rule of thumb is to save 10 percent of all income.
2. Set some financial rules for your household and family. Things like only eating out once a week or only using the credit cards in an absolute emergency are good rules to follow.
3. Create a calendar or list of due dates each month for all of your expenses. Keep this somewhere close to where to pay your bills (see more about this in the next step). Mark bills off as you pay them or write in balances to carry over if you paid a partial payment.
4. Organize an area for bill paying. This can be part of your computer desk area. You should have everything you need to pay bills handy, such as stapler, stamps, pens, checkbook and the due date calendar.
5. Keep great records. Invest in a file cabinet with a locking drawer and make a file for each company you have an account with including car insurance, health insurance, bank accounts and credit cards. Don't forget to include all utilities and any other debt you have. Keep statements and receipts in the file as well as balances and customer service contact information.
6. Get a safe deposit box at your bank or financial institution. This is where you should keep birth certificates, social security cards, titles, deeds, past tax records and any other financial or personal information that could be detrimental in a home burglary.
7. Use the system and follow the rules. Stick to your rules and be sure to save at least 10 percent of all money that comes in the door and you will be set for a financially secure future.

Tips & Warnings

• Open custodial mutual funds for each of your children while they are babies. Even as little as $50 a month can build to just under $30,000 before they are 21.
• Get your kids involved by teaching them how to save money for a larger item they want or give them chores to learn about earning money.
• Never hide purchases or financial decisions from your spouse and encourage them to have the same financial honesty.