7 Ways to Effectively Take Care of your Family’s Money

Wednesday, February 24, 2016, 6:00 AM | Leave Comment

Handling money as a single teen or adult comes easy and almost natural. But if you’ve been entrusted with managing your family’s savings, there is greater pressure not to disappoint.

Protecting it from theft, inflation, irresponsible spending, and avoidable fees is essential to securing a stable financial future for your family.

  1. Be Transparent

    Keeping your family’s finances covert can spark unnecessary arguments within the house. Being transparent gives your family member’s confidence that you are responsibly handling the monthly cash flow. Post grocery receipts, utility bills, and account statements somewhere in the house that everyone can access whenever they want to.

  2. Involve the Family

    While you’ve been appointed to handle the money, it doesn’t mean family members don’t get anything to say about the financial decisions you make. If you are about to buy a car, fridge, sofa, or even a timeshare in foreign soil, sit down with the family, inform them of your decision, and welcome any feedback.

  3. Choose a Money Transfer Service

    It is laborious and time-consuming to have to march to your local bank to send money to family members out of state or abroad. Web-based money transfer services like ShareMoney.com provides a platform wherein you can securely and quickly transfer money to most major banks.

  4. Hire a Professional

    Working with a financial adviser simplifies the ongoing management of your family’s money. They can look at your financial statements, identify areas where you are spending too much and therefore have to cut back on, and grow your money by setting up an investment portfolio.

  5. Invest Wisely

    If it’s your own money, then by all means pick the riskiest assets and hope that it’ll work out 5 to 10 years from now. However, if the funds supplement the current or future needs of your entire family, you have to invest more safely. Stocks of energy companies, US treasury bills, and gold are common low-risk assets that yield decent ROI.

  6. Take Insurance

    Cover all your family members with health insurance so that medical bills don’t dry up your funds. If your current job offers insurance for the whole family, try to take advantage of this option.

  7. Establish Security Measures

    For example, whenever using the family’s money to buy something online, check if the company is a verified seller and not a scam artist trying to take hold of your bank account information.

These seven ways should protect your family’s money while also letting it grow safely through compounding interest. Be proactive in your role as the family money’s guardian and don’t let a day pass without checking your financial situation.

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