For example, if your family decides they want to take a vacation to Florida in 2007, all of them should help figure out how much that trip will cost and how they will collectively save the money for the trip.
Everybody should have a say in the plan, so it is easier to know what the cost will be. All family members should have input into how at least some family money will be spent.
After setting these financial goals, develop a plan for saving the money to make the goals a reality. Look at everyday spending habits and how they can be reduced.
Try using a 30-day spending calendar for everyone in the family. Keep track of how much you spend every day to find out where the money goes. This can help a lot more than just telling your family to spend less. They will see where the money goes. It can be an eye-opener to discover just how much your family actually spends in vending machines, at convenience and fast-food stores each week - those 75-cent soft drinks and 50-cent candy bars add up to more than just extra pounds. Most people do not add up those costs, so they are unaware just how much they are spending. The spending calendar helps determine what they can do to reduce everyday costs and to help reach their goal. They could cut back and still be happy while directing funds to a high-priority goal.
Once plans for reaching the family's goals are developed, get everybody in the family involved in carrying out the plan. If the kids are actively involved in reaching a goal, they are more likely to cooperate.
Getting into better fiscal shape does not require doing sit-ups or avoiding calories. All it involves is doing a little planning and sticking to it. One last thought for the new year and better family fiscal health: At least once a year, look at how your investments are doing and check to see if you have an adequate amount of life insurance and disability coverage.
For more information about financial planning, send a self-addressed, stamped (39 cents) business-size envelope to: Maryland Cooperative Extension - Washington County Office, 7303 Sharpsburg Pike, Boonsboro, MD 21713. Mark the envelope, "Checkup." You also can e-mail your request to llittle@umd.edu with "checkup" in the subject line.
Lynn Little is a family and consumer sciences educator with Maryland Cooperative Extension in Washington County.
