Do You Know How to Manage Your Family’s Finances If A Disaster Struck?

In my family, I pay the monthly bills that are still done manually (you know, write out a check, put it in an envelope with a stamp and mail it). My husband takes care of setting up the online payment of bills. Twice a year, we go through our statements from the banks and brokerage firms to create a spreadsheet of our assets, liabilities, retirement accounts and the kids’ college funds to see how we are progressing (most of our spreadsheets show that we are progressing but we did take a hit to some of our investments last year).

What does your family do so that if something were to happen to you or your spouse, the other one would know what your financial picture looks like? Do both of you review your financial decisions? Do both of you reconcile bank statements? Do you know where all of the family money is invested and who to call if you need to make any changes?

It is good for the family if both of you are knowledgeable about your money matters. That way, both of you can contribute your ideas as to how to manage your money, invest for the future and strengthen your relationship. You will never be caught unprepared in an emergency and will ensure that one partner does not have all of the power in the relationship. Yes, at the beginning, you may make mistakes that may cost you in money or dignity. But, you need to know how to ensure that a disaster can never take everything away from you.

It is also a good idea to teach your children how to manage money. They need to know how to use a checking account, to learn the self-discipline to save money for future goals, and how to manage credit. These are skills that they will need when they go off on their own. Most parents would like to give their children an inheritance but do you want your children to squander what you have worked so hard to save?

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