Importance of sharing financial details with family
In most parts of the world, most financial decisions are made by the breadwinner of the family. Most times, the man (father) is the breadwinner of the family. In most scenarios, the opinions of other family members are not taken with utmost importance. The breadwinner can choose to disclose spending, income, assets, liabilities, insurance etc.
Of course, there are risks involved in disclosing financial details. Sharing financial information can, however, affect the dynamics of the family, positively or negatively. Below are important reasons to share financial details with the family.
- Financial consciousness: Disclosing financial details with family can help increase financial consciousness. Wives, if not aware, should be made aware of financial situations. Sometimes, your spouse’s opinions can even help to positively align financial decisions. Also, planning financial budgets can proof beneficial as both parties will be able to contribute meaning information since they are joint-head of the family. However, care should be taken in cases of temperamental and aggressive wives. Your spouse might also be understanding enough to help cut down on expenses. Sometimes, children should also be made aware of financial conditions of the family. Over the years, children have become increasingly smarter and inquisitive. Increasing their awareness can help reduces unnecessary expenses from their own part.
- Increased support from family: The financial goals and status of a family also depends on the attitude, financial discipline and efforts of the family members. The family can have a “round table” discussion about its finances. A family, well informed about its finances, will ensure that decisions and actions taken by them will positively impact the family’s finances. It take steam effort to achieve a common goal. Supportive family members may even go far as helping to increase financial revenue. The children may do some petty jobs alongside their academics.
- Unexpected events: Sharing of financial details might really help in case of unexpected events. An expected situation may happen in the future. Someone may have to step in, in case of illness, incapacitation or even death of the breadwinner. By disclosing financial details to them, they are able to understand and strategize on how to manage financial affairs. However, not everyone will be in charge of the finances, you may have to nominate a member of the family to fill in. It helps to reduce potential stress that may be faced in the future, especially when claiming assets belonging to the breadwinner.The appointing will be well informed thereby reducing fraudulent and dubious act against them.
The sole aim of discussing financial details is to increase awareness among the family members. It also helps to create a common goal among family members. However, serious care must be taken before sharing such sensitive information. It might lead to arguments and quarrels, particularly the spouse is aggressive, temperamental or emotional. It might also lead to loss of trust, particularly, if the breadwinner has a history of irregular and extravagant lifestyle. It might also affect the stability of the home.