Tag Archives: family

Money Responsibility 101: Family Edition

family

Financial responsibility starts in the home. If it’s not something you were taught as a child, it can be difficult to model it in the home as an adult. The good news is, it’s not too late to start! Here’s what you need to know to kick your household into gear. 

Do It Together

The more, the merrier! Many parents feel anxious to talk about finances with the entire household. However, each member of the household will benefit from having an open conversation about finances. Set goals together and discuss why having goals and sticking to them are important. Review these goals as a family on a consistent basis. You should have your child replicate their own budget with their allowance, which we will cover down below!                                                                   

Diction: It’s Important

Diction means word choice. How you talk about finances makes a big impact on how your children think about finances. It also impacts how you think about finances. It doesn’t have to be a big scary thing when it is discussed as commonplace and in a positive manner.

For example, instead of saying “we can’t afford that” or “we don’t have the budget for it” think of an alternative spin. Simply say something like, “That’s not in the budget for us right now.” It emphasizes that while you may have the money to spend on that item, it’s not planned for in the budget. You’re showing the importance of sticking to a budget and keeping your word. If it’s something that is really important to them, you can show them a way to include it in the budget for a later date. 

Donations

Show your children the importance of giving back by leaving a portion of your family budget aside for donations. Discuss as a family what charity you would like to donate to. If possible, take your children there to show them where that money is going. 

Utilize Allowance 

Having an allowance is an oldie but a goodie! It’s never too early to teach your children about earning money. They will learn to work for money and how to budget it in a way that impacts them directly. You can show them that they can have a portion of their budget set aside for spending “fun” but when it’s gone, it’s gone. 

Budgeting works! You and your family will see this to be true by creating and sticking to one together.

How to Create a Family Budget

family-budget

As your family grows, so will your budget – but where do you even begin when trying to make one? With all the demands of taking care of your family, it may be hard to find time to make a budget…and stick to it. However, you’ll be ecstatic once you start seeing your hard work pay off. Take a look at how you can begin creating your family budget with these starting points.

Put Everything On The Table

You’ll want to list your income and expenses – don’t leave anything out (even that latte you buy three times a week). Make sure your income is reliable, so if you do get money from side job you do every once in a while, don’t list it, as you never know when you’ll have that cash. Some of your monthly expenses are fixed—mortgage/rent and property taxes—while others may vary, such as electricity, water and groceries. List all the fixed expenses and the amount of the expense. For your variable expenses, write the maximum amount you plan to spend in that category or the amount you expect your bill to be.

See Where The Money Disappears To

When you’re making your budget, where does all of this money go? Can you find ways to cut your expenses, such as buying groceries at a different store or carpooling to cut down on gas? Put all of your money into categories, such as utilities and discretionary spending. Your discretionary spending will account for more than you think. Movie tickets, dining out and that coffee every morning add up fast!

Pick A Goal

Know why you’re making this budget, and don’t just say, “to save more.” By having an actual, detailed goal, you’ll be more motivated to stick to the budget. Maybe you want to pay off your student loans or credit card debt, or your goal is to take a trip! No matter what, having a set goal will make the budgeting process a success.

Track Your Spending

As you begin to start working on your budget, sticking to it and adjusting as you go, it’s important to take detailed notes of your spending. It’s very easy to miss little expenses here and there, especially when you’re so busy running around after your children. By tracking your spending and getting in the habit of doing it every day, you’ll be able to narrow down your budget and make it become more realistic. There are plenty of apps out there to help you easily track your spending, instead of doing it by hand.

Become a frugal family with these top tips! They are a great way to start a simple budget and inch your way towards creating a helpful document that will aid you in saving. Place that savings into an account with us, so you can keep building up your finances!

How Much You Can Save by Camping on Your Vacation

camping

You deserve a little vacation with your hunny and children, but what can you do that won’t break the bank? Camping is the perfect solution for families looking for frugal fun! We’re here to share a few of the different ways camping saves you cash and packs in the entertainment.

Cost Per Night

Camping costs zero to $30 a night based on if you have to pay a fee to stay at a camping ground. That number looks tiny compared to the hundreds of dollars hotels cost per night. You may have to invest in some camping gear such as a tent, but your investment will be well worth it, as these items last years. Do some research on the best places to stay, and you’ll be a happy camper.

Meal Budget

Cooking s’mores and hot dogs over the fire for meals beats the hefty prices of restaurant food – especially when you travel as a family. Overall, Americans spend an average of $33 per day on food when on a vacation within the U.S. In aggregate, more than 80% of that amount is spent in restaurants. You have the opportunity to control how much money you spend on eating and find fun ways to cook over a fire!

Free Excursions

Instead of paying a few hundred dollars for the family to enjoy zip lining and other excursions, camping brings the nature to you! If you decide to camp at a national park, there are many attractions within that you can see. Wallet-friendly options to family activities include hiking, biking, stargazing and more! As a bonus, you are even able to bring your pets along for the trip.

No Size Limit

No matter how big or small your family or group of friends is, you won’t have to worry about extra large quantities of money being spent. If you had more than four people, you’d need another hotel room – camping doesn’t make you spend hundreds more when another person is added to the group!

Pay With Cash

When you’re on your trip, pay with cash. This helps you spend less and stay more conscious of your spending habits. It’s a lot harder to keep up with how much you’re spending when you don’t see the money leaving your hands. Grabbing grocery items for the fire can sometimes end in getting more than you need, so using cash will help limit your spending and stay on top of your budget.

Vacations are great ways to bond with friends and family, however, you don’t want to lose your savings to have fun. Camping allows you to maintain your frugal lifestyle while still enjoying life to the fullest. If you’re looking to create a budget and start saving for your next camping trip, give us a call or stop in today!

The Cost of Kids: How to Plan for Your Growing Family

Family Budgeting

At Timberwood Bank, we understand that adding to your family may not only be an emotional decision but a financial one as well. With the growing costs of childcare alone, it’s important to have a well-rounded plan for covering the expenses of your expanding household. In order to plan most effectively, we recommend structuring your budgeting into these three stages:

Beginning or Before Pregnancy: Examine your current health insurance to determine an estimate of cost for both prenatal care and delivery expenses. While many insurers offer prenatal care at no or little additional cost, the price for delivery can be complex. Study your monthly premium, annual deductible, and out-of-pocket limits for the calendar year to help establish these cost before the baby is delivered.

After Birth: Once the baby is born, there will be traditional costs such as health care, food, diapers, clothing, and more. However, many new parents also spend more on take-out meals to help lessen their time cooking. These expenses, along with a decrease in income for parents on maternity leave, can cause many parents to slide into debt. To help alleviate the burden of these growing figures, we recommend creating a monthly budget to designate every dollar to a purpose. By allocating a specific dollar amount to each area of your spending, you can ensure that all of your costs are covered while also planning for the future.

During the First Year: As your child continues to grow, the costs for new clothes and equipment will continue to grow with them. Many expectant parents can spend upwards of $16,000 during the first year of their child’s life, and variables such as location, number of children, and other factors can contribute to the overall costs as well. When possible we recommend saving for each step in your child’s growth. From birth to three month’s they’ll need many one-time purchases, but during the later stages, you may have adequate time to save for each time period’s necessities.

Continue to grow your finances as you grow your family using Timberwood Bank’s trusted deposit services. We’ll help you organize your funds, and make the most of your savings.

What Your Birth Order Says About Your Money Management

birth order

Every family knows there’s a difference between the various siblings, but why is that? Many psychologists agree, birth order plays a large role! Each member of your family is generally rooted in one of four personality types which help define their core behaviors and beliefs. Discover how these traits can translate to your money management style at Timberwood Bank.

First Born: Typically the leader of the family, first borns are strong minded and organized with a heavy protective tendency. Many of those born first err on the side of caution, creating savings accounts for emergencies and unexpected situations. This sibling tends to enjoy being in charge and knowing all the variables. Any expenses, debts, or other monthly bills will be allocated and prepared accordingly. First borns tend to work towards their dreams, and may have the downfall of taking a financial risk to do so.

Middle Child: Always the people pleaser, middle children are most known for helping others. If you need an extra buck or two for lunch, this sibling will the first to lend a hand. Often on the rebellious side, the middle child may be more apt to invest in some riskier stocks, but depending if they pan out, it could make financial sense in the long run. Typically talkative and social, many middle children challenge the norm and create new versions of savings schemes. This sibling will be the first to try the next and best retirement plan before storing away long term savings.

Last Born: Optimism, attention, and organization generally drive the youngest of the siblings. After learning from the mistakes of the older members of the family, this child typically has most financial questions answered before ever needing to ask. This sibling will be the guru of rewards points, always finding the best perks and benefits for various programs. Always looking on the bright side, the last born is compelled to live the best of their life now, assured the future will work itself out later.

Only Child: Frequently told they’re mature for their age, the only child is known for their leadership, sophistication, and drive towards perfection. The typical only child will have a detailed account record with meticulous payment upkeep. These individuals strive to be the best, and are determined to achieve their goals. Expect them to have a strategic savings plan, retirement investing, and a well-rounded home improvement fund. Always up for a challenge, only children can often be great investors seeking out the best stock options for their needs.
No matter your place within the family tree, you’ll always have a financial partner with Timberwood Bank. Whichever goal you’re aiming to tackle next, we’ll help you achieve it!