Family budget without conflicts: how to find balance in finances

The family budget is the basis of the financial well-being of every family. But how to organize it correctly to avoid conflicts and ensure mutual understanding between partners? In this article, we will share practical tips and strategies that will help you effectively manage joint finances, taking into account the interests of each family member.Money has a deep emotional impact and often becomes the cause of conflicts in families. Let's consider the main causes of such quarrels and ways to avoid them together with the adviser of the financial literacy studio Anastasia Horyacha.

Anastasia Goryachaya

Financial literacy atelier consultant

Unequal contribution to the budget

One of the most common causes of disputes is the feeling of injustice due to the uneven distribution of the financial burden. For example, one of the partners earns more, and therefore spends more on common needs.Why does this cause conflicts? The question of justice becomes especially acute when expenses are shared equally, but incomes are not.

How to solve this?

Discuss the proportional distribution of expenses depending on everyone's income.Take into account non-financial contributions, for example, childcare or homework.Make a plan to avoid feeling guilty or unfair.

Lack of transparency

Distrust arises when expenses or income of one of the partners are hidden. For example, situations when one of the partners makes large purchases without warning can cause tension.Why is transparency important? Trust in financial matters is the basis of healthy relationships. Hidden purchases or debts can lead to serious conflicts.

How to achieve transparency?

Use joint financial applications, for example, Monobank or Splitwise.Discuss all major purchases in advance.

Different financial habits

One partner may be prone to savings, and the other to impulsive spending. Such differences in financial approaches often become a source of quarrels.Why is this a problem? Financial habits are formed in childhood, and the difference in approaches can cause misunderstanding.

How to find a balance?

Try to understand the financial values ​​of your partner.Look for compromises and allocate part of the budget for personal expenses.

Source: freepik

Debts or credits

Loans, especially those taken before marriage, often become a source of misunderstanding. Unexpected debts can cause a feeling of deception or injustice.

How to avoid conflicts?

Talk openly about all financial obligations before marriage.Plan how to jointly settle debts.

Absence of common financial goals

When partners have different priorities (for example, one wants to save for an apartment, and the other wants to spend on a vacation), this leads to disputes.

How to solve?

Make a list of joint short-term and long-term goals.Find a balance between savings and expenses.

Family budget: how to avoid quarrels over money?

Building healthy financial relationships is about honesty, planning and cooperation. Here are some tips on how to avoid conflicts:

• Be honest. Discuss income, expenses and major financial decisions together.
• Allocate funds for personal expenses. Each partner must be able to spend a certain amount without explanation.
• Plan together. For example, discuss major purchases, such as a car or repair.
• Define priorities. Work toward common financial goals.
• Learn financial literacy. Take courses together or read books on this topic.
• Don't compare yourself with others. Focus on your own goals, not on how other families live.

Source: freepik

Types of family budget: How to find the optimal approach for your family?

Keeping a family budget is a task that depends on your lifestyle, income and general goals. There is no one-size-fits-all approach, but there are three main models that can help.

Joint budget

In this model, all income is combined into one common fund, from which all expenses are covered.

To suit:

• For couples who completely trust each other.
• To those who have similar financial habits.

Risks:

• One of the partners can feel limited if the other controls the expenses.

Separate budget

In this model, everyone keeps their income separately, and expenses are distributed according to the agreement. For example, one partner pays for rent, the other for food.

To suit:

• For couples with different incomes.
• For those who value financial independence.

Risks:

• A common vision of financial goals may be lacking.

Source: freepik

Mixed budget

Part of the income is combined to cover general expenses (for example, housing, food, children), the rest is left for personal needs.

To suit:

• Most modern families strive for a balance between community and independence.

Risks:

• The need to clearly define which expenses are considered "general" and which are "personal".

Feature: You can set a different percentage ratio depending on income or other factors, for example, on the volume of homework.

How to build an ideal family budget?

Creating a budget is not only about calculations, but also about agreements and a common vision. Here is a step-by-step instruction:

1. Determine financial goals
   • Short-term: travel, repair, purchase of equipment.
   • Long-term: savings for an apartment, pension, education of children.
2. Make an accounting of income and expenses
   • Count all sources of income.
   • Divide expenses into fixed (rent, utilities) and variable (food, entertainment).
3. Distribute duties
   • Decide who is responsible for what: for example, one pays bills, the other plans purchases.
4. Create a reserve fund
   • Set aside at least 10-20% of income for unforeseen expenses. This is your "airbag".
5. Review the budget regularly
   • Meet once a month to analyze expenses and adjust the plan.

Finding a budgeting approach that works for your family is a process of trial and error. It is important to discuss your needs, goals and find a compromise that will make your life together comfortable and financially stable.