Good financial habits start at home. I have noticed that most of the financially literates and financially well-off in Singapore are not just those that have good financial habits but also those that come from families that trained them to be financially adept. Financial wellness should indeed start at home as this are hardly taught at schools. The University of Life may teach adults how to become financially responsible but usually at the expense of a painful lesson from their personal experience. Below are only some of the ways on how you can teach financial wellness to your family members.
Keep a regular budget
A family should keep a regular budget to determine needs and expenses for the month. You may want to prioritize some needs such as tuition, food, utility bills. Keeping a budget will also give you an idea of just how much your family would need for the current month. This would let you know when you need to cut down on some expenses or try to earn an extra penny.
Avoid consumer debt
Good financial management will avoid any forms of consumer debt such as credit cards. Consumer debt is when you purchase products on debt. If you don’t have the cash to pay for it now, then don’t buy it.
Avoid keeping financial secrets among yourselves
Family members should help each other financially especially as the income earners try to contribute as much as they could for the overall household expenses. In the same way, it’s also advisable not to keep any financial secrets among yourselves. A family member may have owed money from the bank. It’s best for other members of the family to be aware of this as you want your family to have an accurate picture of your financial standing as a family.
Live within your means
Financial wellness does not encourage keeping up with what others have just to prove that you have more money than them. In the contrary, to be financially fit would require you to be practical when it comes to your spending. More importantly, you would have to live only within your means. Do not spend money that you do not have. Do not try to impress other people through material things.
Build a savings fund
It’s important to build a savings fund for the family to equip you for any unforeseen misfortune. It is these unforeseen misfortunes such as calamities, sudden death in the family, terminal illness, or house fire that strip family members from their previous financial security.