For some families, if they have a bonus or receive a lump sum income, this amount can also be earmarked for a large expense.Ĭredit card debt can sometimes feel debilitating for families at the detriment of saving and investment, Wendy said. “Starting to save any amount toward these goals creates a good habit that can slowly build up over time,” she said. Generally speaking, For larger expenses that “have a time frame longer than two years,” Wendy said, “I’d advise setting aside a set amount of money monthly to invest and hopefully grow.” As a financial planner, Wendy works with families to figure out how much is needed to be saved monthly for that large purchase. Big purchases like a car, a house, college tuition, a family vacation, and home improvements are all examples of expenses that would be beneficial to include in a family budget. Large expenses are a vital component of a family budget because “these items take diligence save … over a longer period of time. Large Expenses Like Cars, Homes, Vacations, and College Savings Because of these factors, Wendy advised “parents to have separate savings accounts where they can put away money each month to be spent for one summer,” for example. Wendy acknowledged, “One of the biggest issues with family budgeting is that often, there are seasonal or non-recurring expenses.” For example, summer camps are not cheap but are generally paid off in a short period of time prior to them starting. For example, teenagers getting cell phones or a car can significantly impact a budget. When kids get older, the expenses tend to grow, too. Discretionary Categories: Food, entertainment, travel, child care, grocery items (diapers, formula), enrichment activities and sports, summer of seasonal camps, vacations, etc.Non-discretionary Categories: Housing, utilities, etc.Families generally have even more categories because they have additional items to budget for.”īelow is a sample family budget based on Wendy’s financial planner expertise. The main budget categories comprise “total gross income, expenses, and savings going toward retirement, education, or other financial investments. Below is Wendy’s expert financial advice to help all families achieve their financial wellness goals in a sustainable and realistic fashion that meets the diverse needs of all types of families.Īccording to Wendy, all budgets should have certain components included in discretionary and non-discretionary categories. She has an ongoing podcast, Money Talks, where women of diverse backgrounds tell stories about their personal experiences with money, and she also created Money & Me, a children’s education program that teaches financial literacy at an early age. As a financial planner, Wendy Wan Turk works with clients to create comprehensive plans that consider both the numbers and the emotions surrounding money. To help support your family’s financial needs, we interviewed an experienced financial planner to give families advice on budget-friendly tips rooted in financial wellness. If you’re like me, you may even find the idea of creating a budget a bit overwhelming because of all the moving pieces involved in our family’s lives. Our lives are so impacted with work obligations, after-school activities, homework, and meal prepping that financial planning may feel like a luxury that not every family can afford. The issue then becomes finding the time to sit down as a family to discuss finances.
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