How to Manage Family Finances

You have just committed to the biggest step of your life--marriage. Now there are some very hard decisions to be made. One of the biggest is who will manage the family finances. You have accepted the responsibility. Now you have to figure out how to manage the family finances and keep peace, especially if you aren't the main breadwinner. Read on to learn how to manage the family finances.

Difficulty:

Moderate

Instructions

Things You'll Need

• Budget
• Checking account
• Savings account

1. Open a checking and saving account. Most people will open the accounts in both names, but this can lead to problems later. If you are managing the finances and your spouse decides he needs more funds than he has, you could end up getting overdrawn, because you both are trying to use the same money.

2. Set up a budget. Figure the amount of money you have coming in each month and the amount that is going out. This will give you the amount that you have to play with each month. There is a site in the resource section that will help you set up a budget.

3. Allow money for your immediate needs. Make sure you provide spending money for you and your spouse. You will need lunch money and other miscellaneous expenses that you have every day.

4. Save some money. If you are planning on buying a house or having a family, you will want to put money aside for these things. The best way is to put an amount into your monthly budget to plan for the things you want.

5. Figure out what money you have after you have completed the above steps. From this, you can decide what your priorities are. Speak with your spouse--he should have input on this so he doesn't feel as if he has lost all control of the family finances--this can avoid fights later.

6. Make sure you and your spouse are on the same page. This is the only way you can manage your family's finances.

Tips & Warnings

• Money is one of the biggest disputes in a marriage.

• It may sound easy but managing a family's finances can be very difficult especially if you aren't the breadwinner.

Resources

• The Consumer's Almanac
• Tips for Setting and Managing a Family Budget