Family Financial Problems

Many things can place a strain on the family bonds. Health concerns, psychological disorders, disciplinary issues with the children, and financial problems are some obstacles can affect any family. Financial problems can have many causes, and produce disastrous results when not handled promptly and properly. Families can take several steps to try to avoid problems or dig their way out of them.

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Use a budget to avoid money problems

Types

A 2009 Gallup poll lists lack of money, excess debt, the cost of owning or renting a home, job loss and healthcare cost as the most important financial problems families face. Families to worry more about basic economic problems than they do about specific concerns, such as the high gas and oil prices, or taxes.

Causes

Many families experience financial problems because they don’t have good money management skills and make unwise decisions about how to use income and credit. Uncontrollable factors such as unemployment can add to families’ financial problems. Lack of communication can cause problems when shopping gets out of control. Other causes of family financial problems include addiction, emotional problems and stress that lead to irrational spending patterns.

Result

Family financial problems can lead to stress. Some couples fight over spending habits instead of searching for solutions to their money-related issues. Sometimes disagreements over money become so severe that they lead to divorce. Children may feel caught in the middle of the arguments, and feel guilt when they benefit from purchases, or disappointment when money problems prevent them from having certain things.

Prevention/Solution

because the financial problems affect the whole family, have a meeting to explain the financial issue and make a plan to solve it. Create a budget to eliminate debt and save money. Implement good record keeping practices, then establish priorities and stick to them. Viewing last 6 months bank statements, monthly bills, and monthly income information will help determine the family’s budget needs. Family heads can work to create a budget to eliminate debt and save money. Then, implement good record keeping practices and establish priorities and stick to them. If credit issues are out of control, contact creditors to make manageable payment arrangements or seek professional help through Consumer Credit Counseling.

Create a safety net

Families should have a savings account with 6 months worth of living expenses in case of sudden job loss or other unforeseen circumstances. Don't be tempted to live off your credit cards in an emergency.