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| Financial Management Basics |
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Take Control of Spending
- Identify Family Goals
- These may vary by family member. All should be heard.
- Identify common goals - these will have top priority. Some things must wait.
- Each capable family member will know which expenses are within their purview and what their spending limits are.
- Start the learning process early with regular small amounts of money that are not tied to chores or accomplishments.
- Determine dollar limit above which each adult will discuss before expense is made.
- Have each family member verbalize back to you the values and the processes.
- Make purchasing decisions based on YOUR VALUES, not those of friends, family & acquaintances.
- This will not be a quick process, it cannot be a one way conversation if you would like everyone to buy in.
- Identify a path for goals of each family member.
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Determine what you need to save for
- Taxes (Property, Estimated Income Taxes)
- Financial Emergencies (Job Loss, Extended Illness, Natural Disasters)
- Retirement
- Education
- Special Needs
- Home Upkeep or Improvements
- Vehicle Purchase or Replacement
- Travel, Large Purchases and Other Goals
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Saving and Investing
- Determine the Timeline for Each Need
- Match savings timelines with appropriate type of financial instrument
- Identify best financial institution for each need
- Set up additional accounts where needed
- Set up direct deposits, automatic withdrawals, where possible
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Debt
- Avoid debt whenever possible by
- Using cash (cash, check or ATM card)
- Paying credit balances in full each month
- Consider whether each purchase is a NEED or a WANT
- Cut other expenses to pay off debt
- Keep in mind that credit card interest is an expense for which you receive no value except immediate gratification
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Taxes
- Never take out a refund anticipation loan - wait until you have the check in hand and youÂ?ll have the full amount to spend. With electronic filing youÂ?ll have your refund within a week, anyway.
- Predetermine a small amount of the refund as "mad money", the balance to pay off credit card debt, fund savings.
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HELP! I know I should do all these things but I donÂ?t
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