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It’s always a good practice for family oriented couples to be open with finance. In this article, you will get to know six reasons why it’s very important.
The act of being open minded with family finance cannot be overlooked when it comes to family.
Its benefits show why it is vital for couples to be open with their finances in a family. Some homes have been negatively affected as a result of families not being open with family finance.
Because it involves money, most people will choose not to be open with their finances in the family. And as a result of keeping it to themselves, they expose the family to certain pitfalls without being aware.
Sometimes, it’s either the man or woman who earns more than the other but decided to keep it to himself or herself.
Maybe there’s a motive behind the act, but on the other side, no motive behind it is worth neglecting the reasons to be open with the family finance.
Before we go into details with the reasons family oriented couples should be open with family finance, let’s get to know a little about family finance and why it’s important in a family.
Family finance planning
First, these family finances are all expenses, financial accounts, or expenses that relate to the proper maintenance of the entire family.
All of these could be sources of income like trusts, investments, wages, and savings. To be more effective in making a financial plan, one has to come up with the right strategies.
To make a financial plan, one could use the following:
- Set goals to achieve
- Don’t forget to start savings
- Remember the portfolio
- Expect unprepared insurance
- Keep check of your finance
- Be flexible with your strategies
- Track how your plan goes
Before one begins the planning, the first step in financial planning has to do with establishing goals and building relationship.
The person shouldn’t forget the short-term and long-term financial goal while he or she carries out the planning. These short-term financial goals are set up to achieve goals that will benefit the long-term financial goals.
Examples of these financial goals include:
- Saving for children’s education
- Means of improving income
- Saving for retirement
- Not living above means
- Saving for emergencies
- Saving for home
- Paying off depts
- Making a budget and sticking to it
Remember that a strategic financial goal is the financial or non-financial objectives a company or someone looks to achieve over a period of time.
That means it is beneficial to use when couples work on the family’s financial plan.
Family finance management
Family financial management is a crucial part of management that is required of all families by being involved in the cash, income, and paid bills.
Nevertheless, the main objective of financial management is to ensure that there is involvement in the aspect of income, cash, and paying bills, since it may not be possible to control insurance, investing retirement, or other plannings.
This financial management has its types:
- Insurance and risk management
- Working Capital management
- Capital and treasury management
- Financial Planning / Analysis management
Importance of family financing to family oriented couples
It is important to know that the objective of financial planning is to reduce the cost of finance, as it will ensure there’s no lack of funds.
It also helps to tackle organizing, planning, and finance activity control, to utilize funds more effectively.
Also, with family finance, couples can establish financial goals, and these goals can help the family to succeed financially.
It also puts the couples on the right path by being more focused and confident in whatever they do for the family.
Not to mention, it also helps couples in dealing with the types of goals which are: stepping-stone goals, long-term goals, short-term goals, and lifetime goals.
As they continue with it, the primary goals of financial management, maximizing income planning, cost management, and cash flow will enhance.
Reasons family oriented couples should be open with family finance
Having known about family financial management and how important it is, let’s now look at the reasons to be open minded with finance in the family.
Below are the crucial reasons family oriented couples should be open with the family finance.
1. The kids
With good family finance, a sense of financial stability will be created for the kids to benefit from, either now or in the future. And if any emergency arises, this will ensure the safety of the kids and make them feel care for.
It’s easier to provide financial stability for the kids when the couples are together in the family finance. And because education for kids is essential, which is another reason for couples to strengthen the finance.
Even though any of the spouses can assist, that would be only when the finance of the other is not kept as a secret.
If the wife happens to be alone with the daughter and she’s aware of the finance left behind by the husband, it could help to create a better mother and daughter relationship.
And if there happens to be a loss of any of the spouses, the kids will be taken care of with the finance, irrespective of the loss. However, if any spouse keeps the finance a secret, it will be difficult to satisfy the needs and wants of the kids.
2. Stronger bond
As trust is a vital part of every relationship, being open with the family finance will create a stronger bond between the couples. This will strengthen the trust, especially when the spouse is sure that the other is being honest.
It will also give a sense of loyalty and make room for feeling safe and being able to confide in each other. In most cases, being open with finance is what most families need for a stronger bond.
However, such instances don’t necessarily mean that either of the spouses must be financially buoyant. Although it helps when both can contribute a lot more, little from both spouses could go a long way.
But if one of the spouses can’t be open about the finance and the other spouse can perceive the financial strength, he or she will appear untrustworthy. Acting in such a way will weaken the bond once one spouse begins to lose trust in the other.
3. Better family finance
Being involved in the cash, income, and bills will ensure good family financial planning and management. Couples can take advantage of this and even build wealth if the results of what they do turn out fine.
This relates to the say that “two heads are better than one.” This is because either of the spouses will be bringing unique ideas. Such an act will also go a long way in the short-term and long-term goals for the couples.
Because the other partner may be good at family finance management, family oriented couples just need to stay open minded about family finance to take advantage of it as they join heads together.
When the other spouse is willing to invest in something he or she has an interest in, it will be an opportunity to boost the family finance. In addition to that, the more open the couples are about their finances, the more the other spouse will be willing to bring to the table what he or she has.
4. Better understanding
Aside from creating a stronger bond between couples, being open with family finance means that both parties are on the same page. It also shows both parties are after similar expectations.
This will limit pointing fingers at each other, preventing mind games, and consequently improving affection. There’s a sense of understanding that couples get any time they open up, especially in finances.
keeping things away from the spouse is one of those things that creates misunderstanding. Family finance is one of those things not to keep away from the other spouse, and it even seems more important as the family expands.
One would want the spouse thinking positively about him or her, rather than thinking negatively because he or she may be suspecting the spouse of something.
When the other spouse only thinks negatively about the partner because he or she suspecting something, it is likely to generate mixed feelings.
5. Prevents spouse from suffering
Because we can’t tell when an unfortunate incident will happen, finance should be to the knowledge of a spouse. It’s safer when the finance of the family is known to both spouses to prevent any suffering in the future.
But if unknown knowledge of finance is not the case, enough finance left behind will keep the spouse going strong and free from suffering. Most times, when a spouse isn’t open with the other about family finance, it could cause the other to suffer as a result of it.
But is there any justification for this?
Well, many spouses (even the family oriented ones) have suffered as a result of their loved ones not being open minded about his or her finance. Because we can’t predict when unfortunate incidents like death may happen.
Although, it was never anyone’s plan to leave the kids behind with any of the spouses.
But to prevent a spouse from suffering, being open minded with the spouse about finance is a reliable way to ensure that such doesn’t happen.
6. Controls misfortunes
At the point of trying to make ends meet, a spouse could, in some ways, become vulnerable to misfortune. Although it may not be something to worry about at the early stage, it could be damaging in the long run.
Whereas togetherness in the family finance management will bring financial stability, thereby abating any risk. So being open doesn’t only ensure better finance for the family, it also controls misfortunes.
Aside from the likelihood of not having better finance, instances where a spouse isn’t aware of the financial strength of the partner, it could also make a spouse vulnerable to misfortunes too.
It is true that when both can be open with each other about their finance, no one is likely to be a victim of misfortunes trying to meet up financially.
On the other hand, as family oriented couples, if one also has a deep thought and be open about finance, misfortunes will be controlled.
Family finance is something that both partners in a family should be open about. If both parties can adhere to being open minded with their finances, it will enhance the family’s financial planning.
When financial planning has been sorted out, then good financial management will be next to consider by both parties.
Also, it is important to note that when the partners develop good financial planning and management as a result of being open with their finances, it will ensure there is no lack of finance for the family.
Other benefits, as well as things the financial planning and management will control, are investments, retirement, and other plannings. It will also create a more stable home and better union.Let's connect