Financial education in families is essential to have a good relationship with money, know how to handle finances and have keys to face difficult situations.
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However, it is a pending issue in societies and affects all social classes. Proof of this is how families are influenced and managed by trends and advertising, which is well known as creating needs.
We are continually bombarded on how to have a higher "standard of living", which focuses on HAVING, leaving aside the "quality of life", which focuses on ENJOYING, ENJOYING, FEELING, taking into account the real economic possibilities.
The results? Impulsive purchases, improper use of payment instruments, such as credit cards, excessive indebtedness, payment commitments impossible to meet, not reaching the end of the month, lack of balanced budgets, anger and concerns.
Did you know that one of the most frequent causes of separations and divorces is an unbalanced economy?
Do you know that fights and discussions are motivated, in a good number of cases, by discrepancies in the way of managing family finances?
Financial entities know very well that people, in general, what they seek is to satisfy created "needs", such as:
- Have a splendid wedding, even if it cannot be paid for in a more or less reasonable time.
- A celebration of the first communion in a special place and with an extensive guest list, even if the personal loan compromises a family's ability to pay for 7 or 8 years.
A “special” trip, even if it is financed through a “revolving” credit card, which has a special monthly single payment, comprehensive of principal and interest, which, in general, are much higher than a personal loan.
I invite you to consider this approach: a loan is the anticipated achievement of an amount of money that you could only obtain through your effort through work, or from a special gift.
If the work produces a monetary return, with which to pay what you need to live, the special and unforeseen expenses and to be able to save an amount as a reserve fund, when you get into debt with a loan you are committing part of your effort in advance.
You shop now with the benefit of your future job. You get trapped, you go into debt, you compromise your liquidity, your effort, your results.
There are some prudent scales when calculating the maximum of your income that you can allocate to payments, whether for rent, home loan or others: between 30% to 35% of your net family income. That is, for every € 1000 only € 350. Out of every 1000 dollars, only 350 dollars. According to the currency of your country.
You don't need to have great knowledge to have healthy personal and family finances.
Here are 10 keys to decisively improve your economy:
- Keep a balance between your income and expenses.
- It is faster and easier to reduce some expenses than to generate new income
- Know your accounts, make forecasts for non-recurring or seasonal expenses
- Pay off your debts as soon as possible, starting with those with the highest interest
- Save a little each time, make saving a habit
- Educate your children on good management of the economy
- Learn to enjoy life and the little things
- Be grateful for everything you have and receive
- Put your talent to work to generate new income
- Review your beliefs about money, read, find out how it is possible to direct your thoughts, feelings and actions towards balanced and healthy finances
If you want to give your opinion, if you want to tell how to overcome a difficult financial situation, comment.
And remember, happiness is an inner state, the wealth mentality precedes outer wealth, and all people can improve their finances if they have the awareness and the will to do so.