Summary
Running a home can seem like a difficult task, especially when it comes to finances, one of the best ways to help your family achieve the desired success is by planning as much as possible. Giving our loved ones a "very good life" does not necessarily mean buying very expensive things, but rather managing our finances in such a way that the whole family can feel calm and enjoy what their possibilities allow.
It is necessary to design a plan in which everyone participates according to their age and responsibilities. It is advisable to meet to make a financial balance of the home. In said balance, the income of the family members who are able to contribute them, as well as the expenses that each person participates in the family economy, will be entered.
One of the reasons why in order for families to get something they want or want for the future, there is no better tool to use than to create a budget.
Abstract
Handling a household may seem like a complicated task, especially with regard to finance; one of the best ways to ensure that your family reaches the desired success is planning as much as possible. To give our loved ones a "very good life" doesn't necessarily mean you buy things that are very expensive, but managing our finances in such a way that the whole family can feel comfortable and enjoy what their possibilities let you.
It is necessary to design a plan in which all participate in accordance with their age and responsibilities. It is recommended that you meet to make a balance sheet of the home. In the final statement shall be debited with the income of the members of the family that are in scope for potential contributors, as well as the expenses each who participates to the family economy.
One of the reasons that in order to make the families to obtain something that lust or desire for a future, there is no better tool to use to develop a budget.
Development
Managing a home can seem like a complicated task, especially when it comes to finances, which for Gitman finance is (Gitman, 2007) “The art and science of managing money”. Organizing is not always easy when decisions made will affect more than one person. However, one of the best ways to help your family achieve the desired success is by planning as much in advance as possible.
If it seems unnecessary to you to plan your economy, consider very well the following data, released by the INEGI, which shows an increase in the population which significantly reduces the level of income per family, which reduces its employment opportunities due to its demographic growth, for which it is necessary for families to know the financial tools that exist in order to manage the resources they have.
|
Concepts |
2000 to |
2005 b |
2010 c |
||||||
|
Total |
mens |
Women |
Total |
mens |
Women |
Total |
mens |
Women |
|
| Total population |
97,483,412 |
47,592,253 |
49,891,159 |
103,263,388 |
50,249,955 |
53,013,433 |
112,336,538 |
54,855,231 |
57,481,307 |
| % Men women |
49% |
51% |
49% |
51% |
49% |
51% |
|||
| Population Increase |
6% |
9% |
| Indicator | Unit of measurement | Year |
Value |
|||
| INEGI total population. Population and Housing Census, 2010. Basic questionnaire. | Thousands of inhabitants | 2010 |
112,337.00 |
|||
| INEGI dependency relationship. Population and Housing Census, 2010. Basic questionnaire. | Population of dependent age per 100 people of productive age | 2010 |
62.3 |
|||
| INEGI median age. Population and Housing Census, 2010. Basic questionnaire. | Years | 2010 |
26 |
|||
| INEGI population density. Population and Housing Census, 2010. Basic questionnaire. | Inhabitants / km 2 | 2010 |
57 |
|||
| CONAPO life expectancy. Population projections 2010-2050. | Years | 2013 |
74.5062735 |
|||
| Gross marriage rate INEGI. Marriage Statistics. | Marriages per 1,000 inhabitants | 2011 |
4.9 |
|||
| INEGI divorce-marriage relationship. Marriage Statistics. | Divorces for every 100 marriages | 2011 |
16 |
|||
|
Average number of occupants per inhabited private dwelling INEGI. Population and Housing Census, 2010. Basic questionnaire. |
Occupants | 2010 |
3.9 |
|||
| Household income and expenses | ||||||
| Average quarterly total current income per household by main sources of income, 2008 and 2010 | ||||||
| (Pesos at constant 2010 prices) | ||||||
| Sources of income |
2008 |
2010 |
||||
| Total Current Income |
39,823.00 |
34,936.00 |
||||
| Current Monetary Income |
31,919.00 |
27,569.00 |
||||
| Compensation for subordinate work |
19,873.00 |
18,281.00 |
||||
| Income from self-employment |
5,095.00 |
3,111.00 |
||||
| Other income from work |
1,042.00 |
938 |
||||
| Property rental |
1,889.00 |
1,232.00 |
||||
| Transfers |
3,992.00 |
3,974.00 |
||||
| Other current income |
28 |
32 |
||||
| Non-Monetary Current Income |
7,905.00 |
7,367.00 |
||||
| Self-consumption |
336 |
264 |
||||
| Remuneration in kind |
592 |
334 |
||||
| In-kind transfers |
2,565.00 |
2,138.00 |
||||
| Home rental estimate |
4,411.00 |
4,630.00 |
||||
| Household income and expenses | |||||
| Total average quarterly current expenditure per household, by major expenditure items, 2008 and 2010 | |||||
| (Pesos at constant 2010 prices) | |||||
| Large items of expenditure |
2008 |
2010 |
|||
| Total Current Expense |
31,809.00 |
31,260.00 |
|||
| Monetary Current Expenditure |
23,904.00 |
23,893.00 |
|||
| Food, drinks and tobacco |
8,072.00 |
7,821.00 |
|||
| Dress and footwear |
1,259.00 |
1,326.00 |
|||
| Housing and fuels |
2,386.00 |
2,226.00 |
|||
| Articles and services for the home |
1,430.00 |
1,480.00 |
|||
| Health care |
742 |
641 |
|||
| Transport and comunication |
4,408.00 |
4,429.00 |
|||
| Education and recreation |
3,211.00 |
3,256.00 |
|||
| Personal care |
1,665.00 |
1,952.00 |
|||
| Expense transfer |
731 |
761 |
|||
| Non-Monetary Current Expenditure |
7,905.00 |
7,367.00 |
|||
| Self-consumption |
336 |
264 |
|||
| Home rental estimate |
4,411.00 |
4,630.00 |
|||
| Household income and expenses | |||||
| Number of people living in poverty by income, by area and type of poverty, 2006 to 2010 | |||||
| ambit |
2006 |
2008 |
2010 |
||
| Type of poverty | |||||
| National |
82,318,032.00 |
100,275,751.00 |
108,941,608.00 |
||
| Food |
14,742,740.00 |
20,214,520.00 |
21,204,441.00 |
||
| Capabilities |
22,072,988.00 |
27,767,512.00 |
30,029,507.00 |
||
| Heritage |
45,502,304.00 |
52,293,719.00 |
57,707,660.00 |
||
| Urban |
37,408,961.00 |
46,906,868.00 |
55,052,342.00 |
||
| Food |
4,942,523.00 |
7,386,444.00 |
8,873,963.00 |
||
| Capabilities |
8,978,519.00 |
11,972,004.00 |
14,089,457.00 |
||
| Heritage |
23,487,919.00 |
27,548,420.00 |
32,088,922.00 |
||
| Rural |
44,909,071.00 |
53,368,883.00 |
53,889,266.00 |
||
| Food |
9,800,217.00 |
12,828,076.00 |
12,330,478.00 |
||
| Capabilities |
13,094,469.00 |
15,795,508.00 |
15,940,050.00 |
||
| Heritage |
22,014,385.00 |
24,745,299.00 |
25,618,738.00 |
||
| Household income and expenses | |||
| Number of households living in poverty by income, by area and type of poverty, 2006 to 2010 | |||
| ambit |
2006 |
2008 |
2010 |
| Type of poverty | |||
| National |
16,818,800.00 |
20,594,305.00 |
23,176,797.00 |
| Food |
2,876,445.00 |
3,963,665.00 |
4,294,642.00 |
| Capabilities |
4,354,355.00 |
5,552,924.00 |
6,190,592.00 |
| Heritage |
9,588,000.00 |
11,077,716.00 |
12,691,563.00 |
| Urban |
7,906,175.00 |
9,882,484.00 |
12,012,004.00 |
| Food |
1,018,566.00 |
1,478,540.00 |
1,864,408.00 |
| Capabilities |
1,831,279.00 |
2,449,224.00 |
2,970,161.00 |
| Heritage |
5,056,330.00 |
5,954,720.00 |
7,177,435.00 |
| Rural |
8,912,625.00 |
10,711,821.00 |
11,164,793.00 |
| Food |
1,857,879.00 |
2,485,125.00 |
2,430,234.00 |
| Capabilities |
2,523,076.00 |
3,103,700.00 |
3,220,431.00 |
| Heritage |
4,531,670.00 |
5,122,996.00 |
5,514,128.00 |
The first thing to keep in mind is that giving our loved ones a "very good life" does not necessarily mean buying very expensive things, but rather managing our finances in such a way that the whole family can feel calm and enjoy what their possibilities are. allow you.
In order to achieve this, it is necessary to design a plan in which everyone participates according to their age and responsibilities. It is advisable to meet to make a financial balance of the home. In said balance, the income of the family members who are able to contribute them, as well as the expenses that each person participates in the family economy, will be entered.
In the income category, the percentage of the salary that both parents and working children can contribute must be considered. Likewise, it is necessary to consider other sources of family income, such as the rent of an apartment.
In the liabilities, basic expenses such as food, clothing and water, electricity, gas services must be recorded. Also, you have to consider others such as tuition, rent (if the house is not your own), payment of recreational places or extracurricular activities (gym, music classes, sports, etc.), payment of mortgages, credit cards and other debts. At this point it is important not to forget about taxes.
Once the family has taken stock, they will be able to see more clearly what are the necessary expenses, the priorities and the small or big luxuries that can be given. If the income is greater than the expenses, taking a balance as a family will allow all members to understand how money is managed and the children, by feeling included in the financial life of their family nucleus, they will be able to better understand the decisions of parents; said in other words; By making this balance you will be complying with the most important economic principle, according to Gitman, which is used in administrative finance (Gitman,2007) “the analysis of marginal costs and benefits” that establishes that financial decisions must be made and actions carried out only when the additional benefits exceed the additional costs.
After taking the balance, strategies can be designed for better management, such as:
- Decide what to spend on. It is important to agree to spend less than you earn. To avoid financial problems, the healthiest thing is to moderate in family expenses and always allocate a percentage to savings. Shared bank accounts. When it comes to a family where most of its members are mature enough to make the right decisions, joint checking accounts can be a good financial instrument that allows greater control. These types of accounts allow us to keep a more detailed record of our operations since the checks issued with their amounts and beneficiaries are recorded in the checkbook. Plan for the medium and long term. When everyone participates, it is easier to start planning for the future.The family must set goals and express its wishes and dreams for the future. Parents can create awareness in their children about the importance of starting to save as soon as possible by thinking about medium and long-term events such as college education or retirement. We must remember that financial planning according to Gitman, (Gitman, 2007) "is an important aspect… because it provides routes that guide, coordinate and control actions to achieve the objectives." Life insurance. It is also convenient to talk about life insurance and the will. Although it is very difficult to think about issues related to accidents or death of a family member, it is important to inform the family about the measures taken to protect the heritage even in the face of life eventualities.Parents can create awareness in their children about the importance of starting to save as soon as possible by thinking about medium and long-term events such as college education or retirement. We must remember that financial planning according to Gitman, (Gitman, 2007) "is an important aspect… because it provides routes that guide, coordinate and control actions to achieve the objectives." Life insurance. It is also convenient to talk about life insurance and the will. Although it is very difficult to think about issues related to accidents or death of a family member, it is important to inform the family about the measures taken to protect the heritage even in the face of life eventualities.Parents can create awareness in their children about the importance of starting to save as soon as possible by thinking about medium and long-term events such as college education or retirement. We must remember that financial planning according to Gitman, (Gitman, 2007) "is an important aspect… because it provides routes that guide, coordinate and control actions to achieve the objectives." Life insurance. It is also convenient to talk about life insurance and the will. Although it is very difficult to think about issues related to accidents or death of a family member, it is important to inform the family about the measures taken to protect the heritage even in the face of life eventualities.
Since the economy is always dynamic, plans must be flexible. The fundamental rule tells us: "evolve or disappear." All the plans we devise, no matter how good or effective they are at any given time, can be ineffective and even failed in other circumstances.
The family must readjust its balances, plans, and strategies to changing situations. We must be prepared for a drop in income, an increase in taxes, the loss of employment, but also for positive things such as the success of our investments, which, even if it is a positive change, alters the initial calculations of our balance.
It is very important that there is family communication, that they are never left with doubts and that all members cultivate a healthy curiosity about economic issues since participating in family finances is starting a good financial education. Each family is different and a standard plan cannot be designed or followed, but planning must be based on the specific needs and goals of each particular case.
Remember that financial education begins at home. There are still many who believe that to speak about financial education is to get involved in a technical and complex world. On the contrary, financial education allows us to develop useful day-to-day skills: budgeting household expenses, identifying the cheapest credit card, protecting our assets with insurance, having a savings fund to face unforeseen events, preparing retirement.
Transmitting this knowledge to the entire population is a huge challenge that requires the joint efforts of government, social organizations, and financial and educational institutions. However, the home remains the first and foremost environment in which we acquire knowledge and skills that we will use throughout our lives.
One of the reasons why in order for families to get something they want or want for the future, there is no better tool to use than to make a budget; For this, we present tips for its preparation.
1. First step: add your income
To establish a monthly budget you must determine the net amount that you charge on a regular basis. If you collect once a month, it's easy: it's the amount of the check you take home.
2. Second step: Calculate your expenses
This is where you write down everything you think you are going to spend in different categories. We give you some examples of categories. You can modify them to better suit your needs.
3. Third step: Calculate the difference
After creating your budget, you have to keep track of your actual income and expenses. This information helps you understand any "budget variance" - the difference between the amount you projected to spend (budget) and what you actually spent (actual expense) in the month or period.
4. Step Four: Identify, Cut Out, and Exercise a Plan
By identifying your monthly expenses, you may need to cut back on some expenses. Some expenses are easier to cut. For example, you have to pay for the house and the grocery store, but you could pass without seeing that new movie. Trying to spend less is usually a better starting point than cutting an expense entirely. You will be surprised how much money you can save simply by following a plan.
| Entry | Budget | Actual expenditure | Difference |
| Job # 1 | $ | $ | $ |
| Job # 2 | $ | $ | $ |
| Other | $ | $ | $ |
| Total monthly income | $ | $ | $ |
| Expenses | $ | $ | $ |
| Fixed costs | |||
| Housing (rent, insurance, condo association fees) | $ | $ | $ |
| Car insurance | $ | $ | $ |
| Car monthly payment | $ | $ | $ |
| Credit card | $ | $ | $ |
| Flexible expenses | |||
| Savings (retirement fund, emergency reserve fund, savings) | $ | $ | $ |
| Feeding | $ | $ | $ |
| Services (water, electricity, gas, telephone, Internet) | $ | $ | $ |
| Transport | |||
| Public transport | $ | $ | $ |
| Fuel and oil | $ | $ | $ |
| Parking and toll | $ | $ | $ |
| Repairs and maintenance | $ | $ | $ |
| Others | |||
| Medical expenses | $ | $ | $ |
| Gifts and donations | $ | $ | $ |
| Clothes | $ | $ | $ |
| Entertainment | $ | $ | $ |
| Household items | $ | $ | $ |
| Personal articles | $ | $ | $ |
| School enrollment | $ | $ | $ |
| Education expenses | $ | $ | $ |
| Total monthly expenses | $ | $ | $ |
Remember that teaching by example is worth more than words. Strive to maintain healthy finances; you will see that your children, when they grow up, will too and they will thank you, it is never too late to start; go ahead and start now.
conclusion
The best way to ensure that the family achieves financial stability is to know and apply the tools that exist, which is why it is essential that those who have access to make them known, do so. It is not enough to know them personally, there is much to do in the execution of programs to eliminate the economic backwardness of families and especially to combat poverty in the country, but if today families manage to plan their future, they are These who will achieve their goals and purposes to have a comfortable life and without financial regrets that lead to family disintegration, either by seeking a better life away from the family bosom or by looking for wrong alternatives to get wealth that put not only the family of where it comes from but to the others who seek a better life.
Bibliography
- Gitman, LJ (2007). Principles of Financial Management. Mexico: Pearson.
