In these challenging times, many families are experiencing dramatic changes across various aspects of their lives. Whether it's moving to a new home, changing schools, or adapting to a parent's prolonged reserve service, the financial implications can be significant. As your financial advisor, I'm here to offer guidance on how to navigate these turbulent waters.
First and foremost, if your family is affected by these changes, it's crucial to prepare financially. For those already managing a household budget, now is the time to reassess and adjust your plan. If you haven't started budgeting yet, consider this your wake-up call – there's no better time to begin than now.
One question I'm frequently asked is whether children should be involved in these financial discussions. My answer is a resounding yes. However, the level of involvement should be age-appropriate. This approach serves a dual purpose: it helps in managing your household finances more effectively and prepares your children for making sound economic decisions in the future.
So, where do you start? Begin by creating a comprehensive list of anticipated expenses. This should include both one-time costs and recurring expenses. Think about pre-school year purchases like textbooks, notebooks, binders, writing materials, uniforms, and sports equipment. Don't forget to factor in monthly expenses such as extracurricular activities, hobbies, and allowances.
Next, attach a cost estimate to each expense category. Gather information from schools, activity organizers, and other relevant sources. This is where smart consumerism comes into play – do your market research, compare prices, and look for the best deals. These steps are crucial for developing accurate expense projections.
Once you have your data ready, I recommend holding individual meetings with each of your children to review their specific expenses. Follow this up with a family-wide meeting to discuss the overall financial picture. These discussions provide an excellent opportunity to teach your children about the difference between needs and wants – a fundamental concept in financial literacy. Remember, this understanding doesn't develop overnight, but with consistent reinforcement, your children will grasp it over time.
