Posts Tagged ‘finance’

10 Types of Family Financial Needs

Certainly, the financial problems often becomes the main cause of the destruction of relationships. In a dispute that occurred in the family, money often becomes the trigger. The location of the problem, among them due to lack of communication, and lack of proper financial planning.
Barton Goldsmith, psychotherapist and author of Emotional Fitness for Intimacy, said the financial problems become the number one cause of divorce. “If you do not master the language of compromise, is easy once the relationship is disturbed,” he said.
To be able to plan finances well, you would need first to discuss about finances with your partner, parent, or child. What should be considered?
1. Journal of expenditure.
You and your partner need to discuss the financial outlay. For what your money is used, this is the main issue.
According to Goldsmith, each couple must discuss this issue, even if you feel fine finance and control. The purpose of the financial control of them regularly so that you can analyze whether to make changes in priorities.
How to undergo this kind of financial control is to keep a journal of personal and household expenditure. You and your partner need to make this journal respectively. Benefits, at the end of the month you and your partner can evaluate the financial condition. This journal helps you to stay within a stable financial condition. At the same time can also see, whether there should be a reduced expenditure or increase savings.
2. The division of tasks.
Living in pairs need compromise and cooperation. Included in the shared role in financial matters. Conflict is inevitable in the presence of a clear division of tasks. That way, you can avoid the unpleasant situation that a source of dispute. Like, one party feels burdened because they have to take care of everything alone.
How, make a list of obligations related to household needs. Start buying gas for cooking until the electric bill. Share the role of who pays what. To undergo this task, perform monthly meeting. When talking about money, you can not underestimate.
3. Pension fund.
You and your partner may have already occurred or even already has a pension fund from the company. Has this pension fund, however well planned and capable of meeting the needs both of you later?
Talk about this pension fund with a partner. If you feel the need to invest together to prepare for retirement, looking for solutions together. If you do need the help of financial planning, financial planners start looking for services that you agree with the couple. Uncertain economic conditions require that you and your partner ready for any situation.
“Engagement with the financial planner provides another advantage, because it can provide more objective advice, ‘clear Goldsmith.
4. Investment plan.
Variety of investment options may be tempting for you and your partner, is associated with more optimal financial planning for the future.
The right time to talk about investing is when the end of the year, said Goldsmith. At the time this is the one usually re-evaluate their financial condition. To select investments, make sure you and your partner are equipped with appropriate information. With the right information, you can measure investment risk and financial capability.
To unify the views about investment, you and your partner need to have the same perspective. That any financial plan that will be made or executed, the sustainability of the relationship above all else. So make sure you and your partner is fully forward the relationship of any disagreements or concerns to invest.
5. Buying gadgets for children.
Increasingly sophisticated technology. More and more products are offered and seductive, even for children. Mobile, iPad, and others, it was as a premiere and not a tertiary needs anymore. As a parent you need to discuss the nature of the consumer to children. Shopping stuff like this certainly was not financial concerns?
Parents need to give an understanding to the child about the priority needs. What is important and not to have them. That way kids can pick their needs.
Be open, because the children also need to understand the parents’ financial condition. Give a copy to the child’s household budget. Children learn about financial management of these ways.
6. Credit cards for kids.
Children under 18 years, while in junior high or high school, may require a credit card. But if you feel the need to give credit cards to children, teach how to use a wise first. Just lend your credit card, then evaluate what your child is using it.
By Jennifer Austin Leigh, PsyD, a psychologist and family counselor in Ney York, parents need to provide restrictions. Begin the use of credit with a small limit. If the child is capable of accountable, add higher.
“If parents give high credit limit from the beginning, you are being taught to the child’s failure,” said Leigh. Give a complete understanding about credit cards, from how to use, responsibilities, and risks.
7. Children’s education expenses.
You and your partner need to discuss the cost of education since the child was born, said Kalman A. Chany, founder of Campus Consultants. Start saving or consider a number of financial planning related to children’s education expenses.
First step, do the investment. Choose the type of investment that is most comfortable and fit your abilities. If you do not feel confident with the decision together with a partner, find a financial planner to help you make the decision.
Involve your child as well as will discuss the cost of college. By college, children are better able to understand the parents’ financial condition. Encourage children to talk about the family’s financial situation, and discuss options following university costs. Discussion of this important open like parents do with children, in order to create mutual agreement.
8. Help finance the parents.
Your parents may have set up pension funds, but whether it has been self-sufficient in old age? Not a few children, though already married, keep a financial contribution to her parents. Research from the Pew Research Center in Washington DC showed 30 percent of children in adolescence contribute to the financial parents.
As a child, you can discuss a financial contribution to parents with other siblings. Generally, parents do not want to bother their children and are reluctant to discuss its financial difficulties. We recommend that you ask the oldest brother to convey the family’s financial plan to help parents. If you are married, the financial contribution for the parents also need to be agreed with the couple.
9. Health insurance for parents.
Do not wait until parents aged 50-60 years, then you consider to make health insurance for them. Prepare health insurance for parents as soon as possible, so you have no reservations when a parent when ill.
Expand the appropriate information before selecting a long-term health insurance products. Give understanding to parents about the benefits of this insurance. Because they do not necessarily feel the need to purchase an insurance product, or because it did not want to bother her. Give examples of cases of family or friends who struggle to pay health costs without insurance. Then ask your parents to talk about the choice of insurance products that you find out in advance.
10. Financial guardian.
In an emergency, who can you trust to take care of your finances? Likewise with your parents. When he was growing older, to whom financial decisions will be delivered?
Talk to your parents about this family’s financial guardian. If you feel more just to hire a lawyer, make a family agreement. Or if you feel comfortable with family, point to one of the most trusted to manage the family finances.
This talk is not about heritage. However, more to the preparation of the financial management of the family is more restrained. By talking about since the beginning, you and your family to walk on mutual agreement about the family finances, with more comfortable and well planned.