Financial Advice for Every Kind of Family

Every family faces their own successes and challenges when it comes to finances. But it’s easy to fall into playing the comparison game, which is never a good idea.

You can learn from other family’s successes and mistakes, but don’t assume your story will be the same. Your circumstances, your finances, your family dynamic, all of it will be different. So, resist the urge to fall into despair when your story doesn’t match someone else’s.

But, after saying that, there are three common financial priorities every family should have. Keep in mind that the execution of each of these will look different for your family versus your neighbor’s. And that is OK!

No matter how much money is coming in, every kind of family needs to try and make these three money matters a priority.

Budgeting

Yes, this is being brought up AGAIN! If this is your first time to First Kentucky’s Prosper section, then check out this article on budgeting: Boring Budgets Fund Fun Times.

And, if you are tired of reading about budgeting, we’ll just ask this one question: Have you started yet? If not, then don’t delay! It’s seriously one of the best things you can do for your family’s financial situation and goals. If you have … then we are proud of you! Let others know on our Facebook page how budgeting and Prosper are helping your family.

Saving

This may sound impossible for your family. Or you may think, “I save enough.” But, can you answer yes to these three questions?

• Do you have at least 3-6 months of living expenses saved?
• Are you regularly saving for retirement?
• Are you accounting for your life goals in your savings strategy? (Ex. travel, new house, new car)

If you can answer yes, then it’s possible that you’re saving enough. But, if you answered no, then take a close look at your budget for anything you can cut or decrease. Saving money is a big commitment that sometimes takes sacrifices. So, decide what you can sacrifice so you can achieve your goals.

Splurging

Yep, you read that right! It’s OK to splurge every now and then!

For some families, this also might sound impossible. Remember, everyone’s situation is different, and splurging can be whatever definition you give it.

It could be that you buy everyone’s favorite candy bar for family movie night with a movie you borrow for free at the library. Or, it may mean you plan a family weekend away, where you enjoy free activities in a nearby city.

Splurging is just spending a little money on something fun that you normally wouldn’t. It doesn’t have to be extravagant, but it can help you relax, have some fun, and refuel your motivation to keep saving for future experiences.

Just don’t get carried away and exceed your budget. Plan ahead so you’ll be able to enjoy the splurge.

These are three financial priorities that you can start incorporating into your life right now! First Kentucky is here for every kind of family and that’s why we created Prosper, our online resource for families to learn even more about how to best manage their finances.