Mastering Family Budget Management

Sep 8, 2023
6 min

Have you ever wondered where all your money goes at the end of the month? Maybe you've had that feeling that someone else is spending your paycheck, because you don't remember exactly what you spent it on. Or maybe you need money urgently for an expense you hadn't anticipated, but you're short on funds because you spent more than you should have without realizing it.

The reality is that this is a very common situation, especially if your money not only covers your own expenses and needs, but also those of others, such as spouses, parents, children, etc. And if you are single, you should also pay attention, because the principle is the same for one-person families as well as for those composed of several people. Therefore, if you learn to plan your family budget, you will be able to respond better to contingencies, better distribute your expenses, save and even invest.

Importance of family budget planning

First of all, it is important to do good planning in order to have proper control over your finances. Once you have defined a budget, you will have a better understanding of your income and expenses, which will give you a broad picture of your financial situation. Think of your household as a small business (in fact, they have many similar characteristics in terms of budget management), so this overview will help you make better and more informed decisions. You will know how much income your household receives, how much you can spend (even on leisure), save and invest.

Secondly, and directly related to the previous point, planning your budget will allow you to set reasonable and achievable goals. Do you want to go on a trip, buy a house, a car, invest in your education or that of your children? Any goal is valid, the important thing is that it is within your family's financial capabilities so that it is feasible and achievable. Also – you can gain some extra money when achieving the goal. There are no cashbacks for buying real estate, unfortunately. But if you plan going on vacation, for example, you can explore cashback options. One of them would be offers from Mastercard European Privileges Portfolio, you can find more information about it here.

As mentioned earlier, planning involves, among other things, setting aside reserve money for contingencies. If you have such funds, unexpected situations will not take you by surprise.

For sure, planning a family budget will be a very useful tool that will help you improve your lifestyle and that of those closest to you. Reducing uncertainty in relation to your finances will allow you to reduce stress, while your consumer habits and opportunities will improve.

What to do to plan a family budget with the help of Blackcatcard

As an initial step, it is necessary to identify all sources of income that a family has. Although it seems elementary, it is important to pay attention to this point. Who do you live with? Do you have a wife or husband? Do you both work? Apart from your salary, do you have occasional income from personal or family ventures? It is vital to consider all these questions to define the basis of a budget.

Now the other side of the coin, equally indispensable, is expenses. We told you that the budget management of a family in certain aspects is similar to that of a company. Well, this process can be equally or more complex than knowing your income. How many people are in your family? Do you have children, elderly parents? In reality the expenses can be many and depend on each family. Apart from the general expenses, such as rent or mortgage, food, transportation, clothes, education, etc., there may be particular expenses in each case, for example debts, leisure or investments.

Although making a family budget is first and foremost a private exercise that involves you and those close to you, you can use tools that can give you a hand in the process. Several of them can be found on Blackcatcard.

In our platforms you have access to all the information about your income and expenses. Do you receive your salary in your Blackcatcard account? How much did you earn and spend in a month? How and on what? Accurate information is your most important input, and if you are our client, you can consult it at any time you want from any mobile device or PC with Internet.

Once you have defined this first stage, you can distribute your money to cover your expenses. Although you could do it "manually" and remember every detail in your mind, at Blackcatcard you will find instruments that will make this task much easier. When you open a free IBAN account with us you will receive your first virtual and plastic card at no cost. To facilitate the distribution of your funds you can request additional cards and set a limit for each one, so that you do not spend more than the predicted amount with each one of them.

A great advantage of these cards is that you can give them any name you wish, a nickname or other type of denomination, which allows you to differentiate them. It is also possible to receive special cards, such as the family and children's style card. With them you can manage a part of your budget for specific expenses for your family and children, who through your example can learn to be more responsible with their finances in the future.

Actually the cost of these additional cards is very low, since for issuing each card you have to pay 7 Euros and for all the cards you have you will pay a fixed monthly maintenance fee of 2 Euros, no matter how many of them you have. Find more information on our additional cards here.

It is worth noting that we not only give you tools to plan and manage your budget, but we also give you a small financial support. As an additional passive income all our clients, as soon as they open a Blackcatcard account, receive from our partner FINTECH ASSETS OÜ a reward of 2.2% per annum on the funds in their balance. This means that without any action, apart from keeping money in the account, our customers generate a return that can be considered as part of the family income.

Moreover, our partner FINTECH ASSETS OÜ also offers through our fintech ecosystem a 5% cashback for purchases on Google Play Market, 2% on Amazon or 0.1% for all purchases made with your Blackcatcard.

FAQ:

What aspects should I take into account when planning my family budget?

In general terms, the most important thing is to identify all your income and expenses.

How does Blackcatcard help me plan my family budget?

Firstly, we have all the information about all the transactions you make with your account, i.e. what goes in and what comes out. Secondly, you can use additional Blackcatcard cards to distribute your expenses. Also, as an addition to your budget you can receive a 2.2% annual reward on your balance or cashback for purchases with your Blackcatcard.

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