Should couples continue to post their pictures online after marriage? In this age of technology, it has become normal for couples to post their pictures online. Others even go as far as posting every single detail of their lives. Even with everyone genuinely wishing...
Should Parents Join Snapchat? Here is What the Experts Say
Social media has evolved to provide many intriguing features. One great platform that offers these features and more is Snapchat. Therefore, you're not the only parent worried about their teen's activities on Snapchat and who desires to monitor it. Should parents join...
7 Easy Ways to Get Babies to Sleep at Night
The heart of a mother swells with joy to see her baby sleeping peacefully and calmly, likewise the father of the child. Sadly, the joy turns soar when you can't get your baby to sleep at night, oftentimes, you begin to panic, wondering what could be wrong with your...
The Best 12 Educational TV Shows for Kids
One of the children's favorite activities is watching TV. With thousands of TV programs airing today, it is important to pick educational TV shows for kids that will educate and influence them, positively. As a child, I remember wanting to rush home from school...
Financial planning is a difficult task to achieve in most families. This is because the total net income of the family is not properly channelled in the right direction. Learning how to plan a family budget is crucial and influences the family standard of living—either low or high standard of living.
Unfortunately, the bigger the family the bigger the needs. In other words, as the children grow the family needs increase.
What Is a Family Budget?
Family Budget is an outline detailing how the family income is spent on various household items, necessities, and other important future expenditures—based on monthly earnings. However, budgeting involves planning concerning the useful and not the needless. It can be a weekly, monthly, or yearly budget.
Importance of Planning a Family Budget
1. Family Budget Controls Wasteful Spending
Creating a plan on how to spend your income helps minimize the rate at which you spend. In essence, it teaches you to spend on the more important things. It further controls how much is spent on each item—using money wisely.
Subsequently, you don’t buy things because you see them. Rather because you need it.
2. Planning Budget Teaches About Priority
Learning how to plan a family budget enables you to organize your priorities. What are priorities? These are activities that are important to you. Oftentimes, it can’t be ignored and influences all other activities in your life. Hence, you’re able to arrange the family needs based on those that are more important coming first on the list.
3. Budgeting Brings The Family Together
Planning how to utilize the family budget is a medium that brings the family together. It further helps you balance work and family together as a parent. Therefore, everyone in the family should be carried along and allowed to share their opinions on the needs of the family.
4. Planning Family Budget Prevents Financial Difficulties
To avoid going into debt, plan the incoming family income. Unfortunately, certain life events are unpredictable and can take one’s life off balance when not prepared.
Oftentimes, families can be seen struggling to pay for the sudden occurrence. In contrast, with a planned budget that can be averted.
How To Plan And Utilize A Family Budget
1. Know Your Net Income as You Begin Planning
To effectively achieve a balanced family budget you need to calculate the total amount of earnings coming into the family monthly. This could be from your full-time job or part-time job or an investment generating monthly earnings. This will guide you to make plans and goals which are within your capability.
2. Analyse Your Expenditures
Get a journal and pen down everything needed with the household likewise the cost for each item. Preferably an estimated cost to avoid diving into another budget plan to complete another.
This list varies from family to family. It includes the following but is not limited to food, fuel, shelter, education, medical aids, travelling, religious activities, entertainment, project, emergency, social ceremonies, and miscellaneous.
3. To Plan Your Family Budget, Regroup Your Expenditures
Subsequently, after analyzing your total expenditure, you need to regroup each budget under two categories.
Primary Needs: These are needs that are important and urgent. These are termed short-term goals. These sets of family needs must be given greater preference while budgeting.
Secondary Needs: These are needs that are also important but not urgent. The family can simply do without them for a long time. That’s why it’s termed a long-term goal. They are not needed at the moment although needed some time in the future.
4. Discuss With Family Concerning the Budget
How to plan a family budget requires making decisions that are favourable to everyone in the household. During such meetings begin by stating the family net income versus the total cost of the expenditure. Perhaps, it’s beyond the incoming income then there is a need to brainstorm together as a family. This involves cutting down the amount spent on certain items, giving more preference to primary needs, and economizing the available resources.
These steps teach children how to make their own decisions.
5. Inculcate the Habit of Discipline
Irrespective of how arranged your family budget plan may appear without discipline you won’t be able to actualize it. Therefore, you need to be disciplined to spend your income on the set plan.
Refuse to be diverted when enticing activities come up, tempting you to spend unnecessarily.
6. Accountability Helps in Utilizing a Set Family Budget Effectively
It’s Important to give an account after actualizing a set family budget for the previous month. This method guides you to rate your family performance. Evaluate how the income was used—for the specific need or something else.
If it was not well utilized then there is a need for readjustment in this current month.
Conclusion
If you fail to plan your family budget you plan to fail in terms of family finance. That’s why it’s crucial to learn how to plan a family budget to avoid going into debt when a sudden family need arises. Most importantly, always have a set aside saving plan—it’s wrong to use the whole family income for needs with saving any.
Therefore, don’t forget to share your thoughts on how to plan a family budget in the comments section below.
Popular Reads
Signs That a Child is Being Abused
Children who are victims of abuse struggle to cope in life mentally, emotionally, physically, and intellectually. Oftentimes, they have to live with the scars forever. Therefore, due to the increasing rate of child abuse and the stigmas attached, parents, guidance,...
40 Adorable Daughter Quotes from Mom to Daughter
The vast majority of moms are their daughters' first best friends, and this is one of the most profound and enduring friendships on the planet. As a result, letting go of their daughter, regardless of her age, is difficult. In response to this, a few daughter quotes...
Pressured by Your Parents into a Career? Here’s What You Should Do
Conflict of interest in career choice between parents and their children is one of the factors igniting family dispute, which eventually terminates the love, trust, unity, understanding, and harmony in a home. Oftentimes, propels children to rebel against their...
This Is How Much It Costs to Educate a Child in Northern Nigeria
When you think of what your child’s education is going to cost, you probably think of the expenses you cover yourself. From tuition fees, school books and uniforms to daily lunches, transportation to and from school, and extra educational materials at home, the costs...
8 Ways of Dealing With Nigerian Parents
My parents are extremely strict you may say as a Nigerian child, and you're currently finding out a thousand ways of dealing with strict Nigerian parents, just to air your views and be independent. 'Why can't I have my freedom for once', 'sincerely, I feel like a...
How to Help Victims of Sexual Abuse
Sexual abuse victims often experience a range of reactions and emotions from pain, anger, hate, helplessness, and other challenges that negatively affect their mental health. As different victims feel differently about their experiences, it can be difficult to know...
Why Flexibility is More Important than Consistency in Parenting
Setting rules helps everything go as planned. However, when it comes to parenting, flexible parenting plans should be adapted in place of rules. This is because rules have consequences attached to them and these consequences hurt children. Furthermore, consistency...
9 Funny Things Nigerian Parents Say to Their Children
I'm sure you'll agree with me that Nigerian parents do an amazing job raising their children. As a result of the funny things Nigerian parents say to their children while raising them, one would say that they are the funniest parents on the planet. When a person...
8 Activities to Help Your Child Grow Emotionally
Humans react differently to things and situations happening around them or to them. However, irrespective of the differences, it can be broadly classified into positive and negative reactions. For instance, when challenges occur with no hope of a solution, the vast...
14 ways to Keep the Romance Alive After Having Kids
Keeping the romance alive after a baby is quite difficult to attain but not impossible. This is because with the arrival of a child the love begins to diminish as the mother's love, care, and affection are diverted towards the well-being of the baby. Indeed, this...
The Return of Zainab Indomie
...
20 Best Ankara Styles for Ladies in 2023
...
The Mistake That Might Cost Atiku the 2023 Presidency
...
Maryam Yahaya’s Net Worth
...
Fati Washa’s Net Worth
...
Is Adam A Zango Getting Married to Meerah Shuaib?
...
Rahama Sadau’s Evolution Through The Years
...
Maryam Booth’s Net Worth Finally Revealed
...
The Dying Tradition of Toshi in Hausa Land
...
10 Tips on Getting a Clear Skin You Never Know You Needed
...
You May Also Like…
No Results Found
The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.
0 Comments