Boundaries are important, both for children and for adults. Boundaries give life structure and purpose. And boundaries can come in many forms, from helping with addiction recovery to teaching how to function appropriately. Especially in situations that require self-control, boundaries can be the difference between sticking to your guns and falling short of your goals. So to help you maintain financial liquidity within in your home, here are three tips for setting financial boundaries for your family.
The Right Amount of Flexibility
Regardless of how much money your family is making, having a budget is always a good idea so you can keep track of how your money is being spent. Allowing a certain amount of money for things like groceries and activities will help keep your family’s finances healthy and teach your children the value of money. To help make budgeting easier, Kim Petch, a contributor to MoneyCrashers.com, recommends for you to think about your budget as “firm but flexible”. This means you know where the absolute top of your budget is and plan to live well below that number while accepting that sometimes extenuating circumstance arise where your budget will need to stretch in one area and give in another.
Avoiding Financially Abusive Relationships
Bringing finances into a relationship can be extremely hard, especially if you’re the one being asked to spare some money frequently. And while it’s normal for your children to ask you for money for certain things, it’s important that you try to create as healthy of financial relationships as you can between yourself and any other party.
To reign in relationships that may be financially abusive to you, Lynnette Khlafani-Cox, a contributor to DailyFinance.com, recommends sitting down with that person or group of people and explaining that your financial relationship needs to change. This could entail giving your children less money or allocating the money you give in different ways. This could also mean stopping the relinquishing of money to friends or extended family members to avoid being taken advantage of. These boundaries will be very beneficial to set before a financial question arises so you can have a firm foot to stand on when you have to politely decline to loan out more money.
Managing Money With Your Partner
We’ve all heard that money can be a big point of tension in romantic relationships. However, this doesn’t have to be the case. Carrie Pink, a contributor for BlackEnterprise.com, shares that by setting financial boundaries with your partner, like having collective financial goals and budgeting together regularly, you may be able to avoid a lot of the financial problems many couples deal with. Keep in mind that this type of commitment requires trust, so never break your partner’s trust when it comes to money to ensure that you have the best chance for your financial boundaries to work.
By setting the right financial boundaries for your family, you can rest easier knowing each and every member has your family’s best financial interests at heart.