Why Personal Budgets Fail

Most personal budgets fail because the people whom the budgets affects are usually not involved in the budget process.

I believe that everyone in the household should be part of the process. Parents and children are effected by this plan. By including them in a monthly budget overview, they can become a family member with knowledge. By showing the revenue in and the expenses out, everyone can see there impact on the family finances.

I drive a school bus and I see material envy all the time. Most children have times when another child will brag about what they or their parents have just bought. Envy can be a big downer for any child.

One child got on the bus after 10 minutes of telling every what his parent just bought him (this happens even in upper class neighborhoods). "T" got on the bus without his usual smile and I asked what the problem was. He explained what "J" was boasting about. I asked "T" did he like his sister and parents. Does he live in a nice house and have food and clothes. I then said "T" what "J" has will only last for short time, what you have will last longer and be more rewarding. He smiled as he walked away.

By including everyone in the budgeting process, the entire group can see what impact each has on the family. When asked to contribute to the budgeting process, there will be a sense of giving to the betterment of the whole family.

Budgeting makes the family finances usually a cutting process. Budget goals should be accompanied with short term goals, with minor rewards, and long term goals, with a major goal the entire family can participate in. The goals should be maintained with realistic time frames.

The minor goals should be something like pizza night, movies or monster golf. Everyone should have a chance to pick the minor goal. The major goal should be bantered about so that all opinions can be heard and voted on.

Last but not least, the group should offer suggestions were savings can be found. Like shut off the lights, keep the temperature down. Keep the outside door closed. Cellphone usage should be looked at as a cost savings. Cable TV packages. Everyone can find someway to help and be part of the good of the family.