The relation between income and expenses is faced by each family almost from the first days of their marriage. And each element of that relation mentioned above is settled in its own way. Certainly in this case a question arises that we should do something to protect a young family from the harmful influence of financial problems.
I don’t doubt that you know the meaning if the word “budget”. This term know politic leaders
and housewives. But it is not only a way to control spending and revenues. It often serves as an indicator of family relationships. A family budget is a plan for money management including all the family monthly expenses and profits. Traditionally there are several approaches to form a budget. It goes without saying that each approach has its advantages and disadvantages and only the family members can choose which option they prefer.
I’d like to mention a so called joint budget. It’s the most common form of family budget I should say. With this method of distribution of money, all funds earned by family members are put together and then both partners jointly decide how these funds should be spent.
The biggest plus of this approach is that it gives the sense of unity. A husband and wife can have an excellent opportunity to discuss upcoming expenses and profits together. They bear a common responsibility for calculation of their funds. I should say that such a “common purse” is usually used when both parties have got almost equal incomes or if one parry is partially or completely dependent on another one.
This option is almost inevitable in the case when a woman completely devotes herself to taking care for a child and her husband is the main money maker. In this case the budget becomes one solid entity. And a couple decides together how to spend their common money in this situation.
This approach to the mutual trust, mutual responsibility and ability to find a compromise is the most valuable thing in the family life from my point of view. In this situation, a woman should not think how to draw funds from the common budget. She shouldn’t ask her husband about the permission to spend some money because the budget is common and everything is clear. It is an open access to finances. It’s based on the mutual trust. And in this case the husband knows that his wife won’t spend extra money, knowing that earning living isn’t an easy matter. In this case the wife feels herself a mistress, having a voice and the right to participate in the distribution of the family income. As for me I use exactly this approach to my family financial planning and I’m satisfied with the results.
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