When it comes to managing family finances, communication is key. A scheduled, straightforward family finance meeting can help everyone in the household get on the same page when it comes to spending, saving, and planning for the future.
Benefits of running a family finance meeting include reducing financial stress, avoiding debt, and achieving financial independence. Exchanging ideas and coming up with a plan works best when families are ready to discuss goal setting, budgeting strategies, investing, debt repayment methods and more.
Running a successful finance meeting may take some effort but following these five simple steps will ensure that partners are well prepared for regular financial conversations.
Step #1 - Schedule it!
If you live & breath by your outlook or google calendar like my wife and I do, then put this meeting on the calendar. Treat it with the same importance you would a work meeting. A family finance meeting should be held on a regular basis, such as once a month. Both partners should be invited to join in the discussion and have their input heard.
Before getting started, take some time to create an agenda for each meeting. This should include topics such as budget updates, upcoming expenses or savings goals that need addressing. Having an agenda helps keep all members of the household focused during the discussion and ensures nothing important gets overlooked or forgotten about in the process.
Step #2 - Set clear goals and objectives
Before the meeting, determine what the specific financial goals and objectives are for the family, such as paying off debt, saving for your kids’ college education, or creating a budget. This will help ensure that the meeting stays focused and productive.
When it comes to reviewing the family's financial goals, it is important to remember that these should be realistic and attainable. Try breaking them down into bite-sized pieces that can be accomplished over the coming weeks. For example, rather than trying to pay off $10,000 in student loan debt, commit to paying off $500.
Each family member should have a chance to express their personal financial goals and ambitions. Having mutually shared goals gets all hands on deck.
Step #3 - Review financial statements
During family finance meetings, it is important to review financial statements such as credit card spending summaries and investment account performance. Doing so will help the family identify areas where they may be overspending or where budget cuts may need to be made.
It can also provide insight into current interest rates or fees associated you’re your accounts, allowing the family to explore options for potentially reducing costs. Additionally, reviewing investment account performance can help the family evaluate the effectiveness of their investment strategy and make any necessary adjustments.
Overall, regularly reviewing financial statements during family finance meetings can help the family stay informed about their financial situation and make informed decisions about their financial future.
Step #4 - Ask thought-provoking questions
Asking challenging questions during a family finance meeting can help to stimulate critical thinking and encourage active participation from all family members. It can also help to uncover underlying beliefs or attitudes towards money that may be impacting the family's financial decision-making.
A few examples:
Are we on track to accomplish the goals in our Financial Plan? What tactical changes should we be making?
What expenses did we have last month that we can eliminate? Any subscriptions we're not using? It all adds up.
What spending brought us immense joy? Can we afford to DOUBLE those items next month?
Where can we be investing more? Are there tax advantages we're not maximizing such as 401k, HSA, 529 plans?
Which components of our finances make us excited? What are we concerned about?
Step #5 - Assign action items
After discussing various family financial goals and reviewing statements, it is important to assign action items from the meeting. Specific tasks can be assigned to family members based on their interest or skills, and progress should be reported back at the next meeting.
Action items can range from making budget cuts or eliminating unnecessary expenses, to setting up automatic savings deposits and researching different investment options. Setting deadlines for completing these action items can help ensure that progress is made towards meeting each family's financial goals.
Once all of the tasks have been completed, celebrate your success! You’re on your way to a brighter financial future!
Where focus goes, energy flows and results follow
Creating and sticking to a family finance meeting can be an incredibly powerful way to stay on top of your finances. When we focus our attention on creating realistic, attainable financial goals, it helps us make progress towards reaching those goals. Small steps compound to huge results over time. With the right mindset, discipline, and plan in place, you'll find that managing your finances becomes easier than ever before!
DISCLOSURES:
The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.
The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward‐looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.
Consilio Wealth Advisors, LLC (“CWA”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where CWA and its representatives are properly licensed or exempt from licensure.
