With unemployment and national debt at an all-time high, families across the country are facing financial setbacks. As new or experienced parents, this type of situation can have an emotional impact at some point in our lives. However, when our financial crisis hits, our children are impacted immensely, whether we realize it or not. As a parent, it can be difficult to decide whether to tell your children about the current financial status. However, it is important to stay honest and promote open discussion as this is key to helping your children cope and feel secure during hard times.
Boost Your Income
As long as a family unit has bills to pay, goals to meet, and investments to make, money will always be a sensitive topic. If the current total income isn’t sufficient to cater to all the financial needs, an extra coin from an additional venture will come in handy. Opt to work extra shifts, find an extra job, or create a side hustle. According to INC, “…a recent essay in The Wall Street Journal reveals that people over the age of 35 are more likely to start a business and succeed at it.” Subsequently, it’d be safe to extrapolate that many of these people are parents, or will be parents at some point in their life, and are thinking about long-term financial security for their loved ones.
Repay Your Debt
The average credit debt for families in America is over $15,000. An unfortunately, debt is like quicksand – it will keep pulling you down until you purpose to get out of it and stay out of it. Borrowing from Paul to pay Peter is only going to get you deeper into debt. Make notes of all your debts and create a strategic plan to repay each one of them. After being rendered debt free, adjust your family’s life to fit the new budget. Once stability is achieved, it is important to learn how to build credit from scratch. Furthermore, you can also move to a cheaper house, get rid of one of your cars, cut down the monthly household expenditure, move the kids to a cheaper school, and cut down on eating out.
Prioritize Your Home Expenses
Debt is one of the leading causes for divorce and conflict. In fact, it is the leading cause of divorce in America. Most couples have no problem with how much each partner makes but have trouble with how it is used. Conflicting goals and targets will cause disagreements and frustration to a point of separation and divorce. Families who collectively discuss their finances and make joint decisions on expenditure are likely to escape debt and financial distress. In this case, extravagant members would be motivated to reform for the sake of the other family members.
No matter how deep your financial crisis as a family is, there is hope. Getting out of debt and financial strain is possible as long as you have the determination and will to change the situation. Be willing to give up some of the luxuries that you are used to and adjust to the new lifestyle. If you are unable to do this on your own, it is advisable to seek help from a certified financial adviser. At the end of the day, the stability, happiness and well-being of your family is what matters the most.