Family Group Savings - Part 2

"Budgeting your money is the key to having enough." - Elizabeth Warren

A family budgeting plan can be a great asset.

For families looking to set up a savings plan to cover future events, it is important to get agreement from each family member. Dynamics are different for every family, how they reach agreement, or not, on this plan or any other family matter, is entirely up to them.

There are important points to consider when a family agrees to a savings plan.

1. Clearly define the financial goals of the fund. Discuss a primary goal with one or two subsidiary options.

2. Agree on an affordable contribution, each member will pay into the fund on a weekly, fortnightly or monthly basis.

3. Allocate a portion of the fund for emergencies.

4. Appoint a treasurer to manage the bank account, maintain records of contributions and cashflow, and provide regular reports to the finance committee and members as to the health of the fund.

5. Appoint a finance committee. Depending on the size of the family unit, at least two other members should be on the committee to oversee the work of the treasurer.

6. Open a dedicated savings account under the family name which may include the general objective of the fund. 

7. Two signatories must always approve withdrawals from the account.

8. Meet as often as possible to discuss contributions, fund transactions, any emergencies, upcoming events and the health of the fund. Keep minutes of the meeting, who attended and what was discussed.

9. Regular newsletters via email are a useful tool to publish the minutes of meetings, keep members informed of upcoming events such as a fund-raising activity or any matter related to the goals of the fund.

10. Spread the workload. Appoint a member to keep minutes, another to publish the newsletters, someone else to be an archivist, and any other role that helps the family achieve its goals.

Transparency. 

It is important to build trust and accountability between all family members by ensuring each freely participates in decision making. The treasurer and finance committee are important roles in building trust by being accountable through the regular finance reports they provide to all family members. Open communication in meetings and newsletters relating to the goals of the fund, foster trust in the group and each other and their ability to work together as a family to make the fund a success.