Establishing a Family Budget
Let’s face it – the idea of ‘budgeting’ is about as exciting as the idea of a voluntary root canal. Most of us think that budgeting will result in judgment, criticism, penny-pinching, and sacrifice.
They’re right – when individual financial agendas have trumped shared financial priorities.
So healthy budgeting leaves the pencil, paper, and calculators on the sideline – and focuses instead on understanding each spouse’s financial priorities, fears, and dreams – as well as their financial risks and vulnerabilities.
Healthy budgeting strives to establish a set of shared priorities – without abandoning individual priorities. That way, when we do start putting numbers to paper – and see how money flows in and out of your household – things that are misaligned will leap off the page. That makes it easier to approach the harder part of the budgeting process with purpose.
In most cases – Mom and Dad will still have their ‘discretionary’ money budgets, understanding that there must be room for individual priorities as well as shared priorities. Take out the potentially contentious part and focus on shared priorities – and most families will find the budgeting process empowering rather than debilitating.
Watch a short video that introduces the approach Velomon uses when working with families.