Family finance is a very important part of relationships to be open minded with. No hiding anything about it in terms of relationships.
The act of being open minded is not limited when it comes to relationship aspects.
I can go on and on to tell you why it is vital to be open in a relationship, but we should start from some where, I guess.
Relationships has been negatively affected as a result of not being open with the family finance.
It happens even to the best loving couples. But you know, because it concerns finance in the family, most will prefer to keep it to themselves.
But is that suppose to be the right choice?
Probably, either the man or woman earns really big than the other, but decided to keep to his or herself.
Maybe there’s a motive behind the act, but on the side, no motive behind it is worth neglecting the reasons to be open with the family finance.
Before I go into details with the reasons to be open with family finance, let’s get to know a little about it.
Family finance planning
Firstly, this family finances are all expenses, financial accounts or expenses that relates to proper maintenence of the entire family.
All of these could be sources of income like trusts, investments, wages and savings.
In order to be more effective making financial plan, you have to come up with the right strategies.
To make a financial plan, you 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 you begin the planning, the first step in financial planning has to do with establishing your goals and building relationship.
Don’t forget your short-term and long-term financial goal while you carry out the planning.
Short-term financial goals are set up to achieve goals that will benefit your long-term financial goals.
Examples of these financial goals includes :
- Saving for children’s education
- Means to improve income
- Saving for retirement
- Not living above means
- Saving for emergencies
- Saving for home
- Paying off depts
- Making budget and sticking to it
Remember that a strategic financial goal is financial or non-financial objectives a company or someone looks to achieve over a period of time.
That means it can be beneficial to use when you work on your family finance 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 there is involvement in the aspect of income, cash and paid bills, since it may not be possible to control insurance, investing, retirement or other plannings.
This financial management has it’s types namely :
- Insurance and risk management
- Working Capital management
- Capital and treasury management
- Financial Planning / Analysis management
Importance of family financing
It is important to know that, the objectives of financial planning is to reduce cost of finance, as it will ensure there’s no lack of fund.
It also helps tackle organizing, planning and finance activity control, to utilize funds more effectively.
Also, with family finance, you establish financial goals, and these goals helps you to succeed financially in your relationship.
It also puts you on the right path by being more focused and confident in whatever you do in your relationship.
Not to mention, it also helps you in dealing with the types of goals which are : stepping-stone goals, long-term goals, short-term goals and lifetime goals.
As you continue it, the primary goals of financial management, maximizing income planning, cost management and cash flow will begin to enhance.
Reasons to open minded with family finance
Haven known much about the family finance management and how important it is, let’s now look at the reasons to be open minded with finance in a relationship.
Below are the crucial reasons to be open with the family finance in relationships :
1. Your kids
Of course, you wouldn’t want your kids to suffer either now or later in the future.
By being open with your family finance, you don’t just enhance the bond, but you also create financial stability.
However, this financial stability you create will favor your kids now and even in future.
If at all any unfortunate incident occurs and it requires finance, this will also ensure your kids safety.
Whether the unfortunate incident happens to you or your kids, any of the spouse can assist.
Although, any of the spouse can assist, but that would be only when the finance of the other is not hidden.
If a mother happens to be left with the daughter and she’s aware of the finance left behind, it would help to create a better mother and daughter relationship.
If there happens to be loss of any of the spouse, the kids will be taken care of, irrespective of the loss.
However, if you keep your finance private with your spouse, your spouse will not know you have money in your account.
This especially is vital when you are the bread-winner or the only income contributor in the relationship.
2. Stronger bond
There is nothing more trusting to your spouse than knowing you are open to him or her, and you have nothing to hide.
This will enhance the trust, especially when your spouse is sure you are being honest.
In return, it strengthens the bond between you and your spouse, now and in the long run.
The reality about being open minded with family finance is that, your bank account must not be huge before you can be open about it.
What really matters is that your spouse can trust you and it will help with the family finance management.
Like you already know, trust is a vital aspect of any relationship.
However, if you can’t be open about your finance and your spouse can perceive your financial strength, you will appear untrusted.
Acting such way will weaken the bond once your spouse begins to lose trust in you.
So, in order to get rid of such and build the trust and bond, it requires you being open with your finance.
3. Better family finance
Things changes, situation changes and challenges arises.
Thinking your spouse’s finance alone can take care of things in your relationship could be a big mistake.
Remember what they say : “two heads are better than one”
That wise say is not exceptional when it comes to family finance. Considering that the other partner could be creative with the family finance management.
When your spouse is willing to invest in something he or she has interest in, it will be an opportunity to boost the family finance.
In addition to that, the more open you are about your finance with your spouse, the more your spouse will be willing to bring to the table what he or she has.
In that case, whether it is a support to contribute finance, ideas or investment, the family finance will be better.
4. Better understanding
Keepings things away from your spouse is one of those things that creates misunderstanding.
Family finance is one those things not to keep away from your spouse, and it even seem more important.
Actually, you would want your spouse thinking positively about you, rather than thinking negatively because he or she is suspecting you.
When your spouse only thinks negatively about you in suspect to that, it is likely to generate mixed feelings.
In that case, when such feeling comes in, there won’t be more room for better understanding.
If you are the type that likes to keep things private, there’s no need to keep such private with your spouse.
Ironically, you will be saying to your spouse “I don’t trust you”
So, how about when you are a big spender and you aren’t open to your spouse with family finance?
Wow! Puzzles all the way.
5. Avoids your spouse from suffering
Most times in relationships, when a spouse isn’t open with the other about the family finance, it could leave the other to suffer as a result of it.
But is there really any justification to this?
Well, many spouse have suffered as a result of their loved ones not being open minded with his or her finance.
Because we can’t really predict when unfortunate incidents like death may happen.
So, there is really need to be open with your spouse about your finance.
Although, it was never your plan to be left alone with the kids doing nothing and suffering it all alone.
In order to avoid such happening, being open minded with your spouse about your finance is a reliable way to ensure such doesn’t happen.
6. Controls misfortunes
Many relationships encounter misfortunes at the course of the spouse trying to meet up financially.
It is really sad, considering the fact that the person who became victim of it was unaware of the financial ability of the spouse.
It is true that when the both can be open with each other about their finance, no one will likely be a victim of misfortunes trying to meet up financially.
On the other hand, if you also have a deep thought about it and abide by it, misfortunes will be controlled.
Aside from that, without better family finance that being open would have resulted to, when misfortunes comes, it going to be tougher.
There’s absolutely no point trying to be smart with your money in your relationship, creating room for likely misfortunes you never knew it could lead to.
Family finance should be something that both partners in a relationship should be open about.
If both parties can adhere to being open minded with their finances, it will also enhance the family finance planning.
When the finance planning has been sorted out, then a good financial management will be next to consider by both parties.
Also, it is important to note that when the partners develop the financial planning as a result being open with their finances, it will ensure there is no lack of fund in the relationship.
Other benefits as well as things the financial planning and management will control are investment, retirement and other plannings.
All of these and more are very good reasons to be open about your finance with your spouse and progress in your relationship.Let's connect