Financial Fitness Challenge: 7 Steps to Effective Family Meetings
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United Way of Greater Milwaukee & Waukesha County

Financial Fitness Challenge: 7 Steps to Effective Family Meetings

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Where does financial fitness start? Many of us have thought long and hard about it, become stressed, lost sleep, fought with family, and attempted to ‘start fresh’ dozens of times, but still we find ourselves in the same place – struggling to save money, falling behind on bills, even living paycheck to paycheck. 

April is Financial Literacy Month, and over the next few weeks, I will be sharing ideas to help you get a jump start on your financial fitness goals. Ready? Let’s get started!

About the Blogger
Gina M. Sanchez Juarez is the Financial Stability Coordinator at La Casa de Esperanza, in Waukesha, Wisconsin. The Financial Stability Initiative is a partnership between La Casa de Esperanza and the United Way of Greater Milwaukee & Waukesha County. Gina has all six certifications under the NeighborWorks Center for Homeownership Education and Counseling and operates under the National Industry Standards for Homeownership Education. She is a financial coach and educator working with individuals and families on obtaining tools for financial capability by meeting basic needs, building savings and gaining assets. She enjoys sharing her knowledge of personal finances to positively impact the lives of others. 

 

First of all, many households struggle with money issues. You are not alone in this! It’s actually quite common because every person has different values about money – how it should be spent or saved, how to prioritize needs versus wants, etc. Money is also closely tied to emotions for a lot of us, and depending on the emotion, this can be a good or a bad thing, sometimes both!  In addition to the different values assigned to money, problems can arise because of poor planning or setting unrealistic goals. 

While everyone comes to the table with different values and opinions about money, I’m here to tell you that COMMUNICATION is the foundation of personal finances in your household, so let’s start there. Why communication? You might be surprised to learn that the number one cause of divorce – and a core problem in many households across America – is communication about money.  Family meetings are an essential strategy to combat money issues, no matter who makes up your family; parents, children, caregivers, roommates, and so on. Whether you’ve never held a family meeting or you regularly meet every week, this is a great way to introduce discussions about money.

7 Steps to Effective Family Meetings

  1. Select One Problem: When thinking about the variety of challenges related to money in your household, it’s best to focus on one problem at a time. Trying to attack several problems at once can be a disaster because it quickly becomes overwhelming. Be specific about the problem you want to address. Write it down. Make sure everyone agrees to focus on this problem alone.
  2. Brainstorm Solutions: Every member of the household can participate by coming up with different solutions to the problem, kids included.  Be creative, and don’t put down anyone’s ideas. Judgments are not allowed at this meeting. Designate one person as the note taker, and after everyone has had the opportunity to come up with some ideas, create a list of all the possible solutions
  3. Evaluate: Step through each of the possible solutions, and decide if they are practical. Can everyone agree on that solution, or can a few solutions be combined to make it work?
  4. Select One Solution: Now select one solution and talk through what the process will be to make it work. Are there sacrifices that will need to be made? Is it realistic? Which family member(s) will have the greatest impact on this solution working or not working? What can other family members do to help? How long will it take?
  5. Prevention: Forecast what might get in the way of your solution being successful so you can come up with ways to overcome any issues you might run into.  Remember that there may need to be compromise and sacrifice to make it happen. 
  6. Follow Through: Now everyone must do their part in order to make this work and keep to the agreement. Make sure everyone understands what their role is in the solution.
  7. Reward: Reframe what seems like a sacrifice into a reward. Maybe instead of ordering pizza three times a week, it becomes a treat, and you only do it once in a while for someone’s birthday.  It will be more meaningful when you see the positive results of your decisions and sacrifices. Rewards can be as simple as acknowledging that things are getting better. 

Things to Consider

  • Selecting a time to have your family meeting is a critical consideration. If someone had a bad day at work or school, then it is important to reschedule.  You want everyone to be prepared to have a serious discussion focused on making positive changes.  Set aside a time once every month for your meeting. 
  • There should be no distractions; that means no TV, cell phones, video games, board games, IPads or electronic devices. Everyone’s attention needs to be focused on the conversation and solving a problem. 
  • It is important to set ground rules and give everyone a chance to speak. Ask everyone to agree to the ground rules. Write down your ground rules and post them where everyone can see. Sometimes you’ll have one or two individuals that do most of the talking, so setting ground rules will remind those family members to also be active listeners and give other people the chance to share their ideas. (Active listening means that you are not thinking about what you want to say while someone else is speaking.) 
  • Try to understand what people are really saying, and if you are not sure, repeat it back to them to make sure you understood.  You could say, “So let me make sure I understand. Are you saying that….” 
  • No blaming. This means that the meeting is focused on looking for solutions, not looking to identify who is at fault. Remember and respect that everyone has different values tied to money. Your discussion is about compromise, respect and solutions.