Who in your household handles the finances? Is it you or your spouse? It is almost always only one individual in the household that handles the money and truly has a grasp on their financial circumstances. But what about the other person? Shouldn’t they know exactly where the money is going and how much is in savings?Up until I got this nanny job, our finances were handled by Aaron. I had no problem with him handling it, as he had more experience setting up a budget than I had up until that point. Every once in a while though a situation would come where I needed to know where we were in our financial progress and if we had enough money for an item in savings. For example, if I needed to go to the doctors and have a procedure that I knew wasn’t going to be covered by our insurance, I would have to call Aaron or wait until he got home so he could show me if there was money for the procedure or not. After a little while, Aaron and I both realized that I needed to be more involved in the whole process. What we started out doing was having a “financial meeting” about every two weeks to once a month just to go over where we were and how close we were to our goals that we set for ourselves. It was actually really helpful for me. I felt more involved and had a better grasp on where we were and where we were headed, whether positive or negative.
Then came this new job. I would be getting a steady income and I had some very specific goals of my own that I needed to save this money for, like college bills for example. So, how were we supposed to handle this? Should we combine our money and handle it as one large paycheck? Should I keep my money completely separate and do my own thing with it? In the end we did a combination of the both. I had read an article that encouraged both spouses in a family to know the ins and outs of their financial status and how to go about taking care of the bills and other necessities. The article made the point, what would you do if something would happen to your spouse? Would the other person know what savings accounts there where? What money was invested and where it was invested? How to go about the weekly and day to day business of handling the family’s money? I would have had to say “no” to all of that. Yeah I saw the budget sheet each month but that didn’t mean I knew how to go about doing any of it.
Aaron and I both decided that it would be a good idea for me to have practice with a budget sheet and managing money in general. He sat down with me and we worked on setting up a budget sheet that worked for both of us. Even though it is my paycheck there are still common goals that we are working towards. This extra income in helping us to save for those things faster while still paying off my college debt month to month. This has worked out great so far. I am learning first hand how to handle money while still having Aaron involved. We both feel very strongly about having combined finances as much as possible and always keeping the other person in the loop with what is going on. Now if something were to happen to either one of us we both know exactly what to do and where everything is.
I would encourage every person to learn how to manage your families money, for several reasons:
1. If something were to happen to your spouse you would be prepared to still get the bills out on time and would know where all the pertinent information was. It would be a lot less worry in a time of possible distress.
2. Learning the importance of managing money is an invaluable life lesson. “Money is what makes the world go ’round.”
3. If both spouses are on the same page with their finances there is a lot less room for miscommunication and possible arguments.
4. It keeps both spouses accountable for their spending. If you both know where you are on your financial road map, then it will be a lot harder to make excuses for your excessive spending. You can’t get away with the “I didn’t know” excuse.
If you and your spouse handle your finances together let me know how you work it out in the comments below. If you are going to try this for the first time let us know about your progress. It may be a little tricky at first until both people are on the same page, but it will be well worth the time. There will be a lot less stress for the both of you in the future. Good luck!
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