Personal Insights

How to Set Your Family Up for Financial Success

All it takes is learning how to budget, save money, manage finances as team, and teach your children about money.

By Allison Baggerly, founder of Inspired Budget.

Sponsored by Regions Bank, Member FDIC. All thoughts are my own.

Budgeting and saving money can be overwhelming. Throw in kids and the desire to set your family up for financial success, and some people are bound to give up. But the truth is that managing your money better as a family doesn’t have to be difficult.

No matter what stage of life you are in, it is possible to set up your family for financial success. Whether you’re a young couple, raising sweet toddlers, or guiding your teens, you are capable of making your money go further. All it takes is learning how to budget, save money, manage finances as team, and teach your children about money and I’ve teamed up with Regions Bank to ensure you and your family are set up or financial success.

Set Up A Budget

The most important way to set your family up for financial success is to sit down and write a budget. A budget is a tool you use to tell your money where to go. It doesn’t control you. In fact, you control your budget. No matter how you decide to budget, here are a few tips to make it work for you:

• Take time to write a new budget each month. Some of your expenses will remain the same, like your mortgage or internet bill. However, many of your expenses change from month to month, like your electricity bill or how much you spend on restaurants. Due to the fact that some expenses change, your budget won’t stay the same month in and month out. Take time to sit down with no distractions and set up a budget that your family can live on.
• Track your expenses daily. It doesn’t matter if you use an app or paper and pencil, just track where you’re sending your money. This allows you to identify areas where you might be overspending each month. It gives you the opportunity to take a long, hard look at your spending habits. Are you spending too much on takeout each month? Or maybe it’s time to cut back on that grocery bill.
• Be flexible. Most budgets don’t go as planned. Don’t let unexpected expenses throw off your entire budget. Instead of giving up and starting over next month, create a smaller mini-budget to last you until payday.
• Prioritize how you spend money. Just because you’re on a budget doesn’t mean that you can’t enjoy spending money on things you love. Prioritize what you spend money on and cut out the expenses that aren’t important.

Start Saving Money

Once you decide what you can cut from your budget, it’s time to send extra money to savings. While saving money might not be as fun or exhilarating as picking out new furniture, it’s an important step in setting up your family for financial success. Although you might be tempted to only save for vacations, make sure you also save for emergencies such as medical bills or major car repairs.

Plus, saving money and building up an emergency fund doesn’t have to be overwhelming. When families are on the same page with their money, building up savings can be simple. And don’t forget that setting aside money in savings helps ensure that when something goes wrong (because it will!) your family will be prepared.

Learn About Money Together

If you and your partner are new to handling finances, then it might be time to learn about money together. An easy way to learn together is to read the same articles about money management and money habits. No matter what stage of life you are in, Regions Bank, member of the FDIC, has resources that will interest both you and your partner.

How To Manage Finances Like A Team

The best way to set your family up for success financially is to work together as a team each and every day. It’s not always easy to stay on the same page about money, but with effort on both ends, it can be done. Below are 3 tips that will help you stay on the same page with your partner and make progress as a team toward your financial goals.

• Talk about your money goals. Families should consistently talk about their financial goals and dreams, even with children present. Setting goals and communicating about them weekly is a great way to remember why you’re working toward financial success. Display both your short term and long-term goals in a visible place that you see every day.
• Set up a time to work on your finances together. Having a set time to sit down each week and review your spending and check in on your budget is important. A weekly meeting gives you the opportunity to talk about what is on the horizon with your finances, as well as the time to practice effective communication.
• Be honest about your finances. Surely, you’ve heard the phrase “honesty is the best policy.” The same rings true for your finances. The best way to work together as a team on your finances is to keep everything out in the open. That means no secret credit cards or loans. Also, it’s best to own up to any overspending or impulse purchases.

Teach Your Kids About Money

Most parents want to send their children off in the real world with a strong sense of how to manage their money properly. The best way to ensure that you are raising financially fit children is to start teaching them about money at a young age.

As your children grow, give them the opportunity to practice saving, spending, and giving money responsibly. Choose a few jobs around the house that your children can complete for money. Then, encourage them to save a portion of their money, give a portion away, and spend their money as well.

To help teach your children the habit of saving money, allow them to collect their coins and bills in a jar or envelope. Set an attainable savings goal for them and keep track of their progress. An easy way to do this is to track the amount saved on a chart.

It’s never too early to teach your children the importance of giving. Assist your child in picking out a place that they want to give to, such as a food pantry, charity, or church. Then talk with them about how the money they worked hard for will help others. You might be surprised to see that your child also learns a lesson in empathy!

When children work to earn money, they should be given the opportunity to spend it as well. Take your child to the store to pick out an item with the money they worked hard for. Provide your child with years of practice when it comes to handling money responsibly.

Setting your family up for financial success doesn’t have to be difficult. When you combine budgeting, saving, working together as a team, and teaching children about money, you are sure to see amazing results!

Allison Baggerly is a blogger, influencer, speaker, and the founder of Inspired Budget. As a teacher and small business owner, Allison combined her passion of teaching and finances to help others learn how to start budgeting.

Since starting Inspired Budget in 2017, Allison has been able to retire as a teacher and take her desire to help others full time. Now she is helping women all over the world get started with budgeting when they feel lost and overwhelmed. She has built a tribe of over 88K Instagram followers that turn to her for budgeting advice and inspiration to save more than they ever imagined!