Mapping your family’s expenses is one of the most powerful ways to bring order out of chaos. Think of it as your financial guide—a clear picture of how your money is flowing. Whether you’re trying to save for a dream vacation or pay off debt, a solid spending plan can guide all of your family’s financial decisions.
I am not saying that you set a strict budget for your family. Many people struggle to manage their finances individually, let alone their families, and the reason this struggle exists is because budgets feel restrictive and often leave little room to work. There is also a negative association with budgeting as it puts an artificial cap on how much you should spend, making people less likely to stick to it.
Your family’s Conscious Spending Plan will allow you to manage your family’s finances consistently and have room for guilt-free spending. To get started, list all your sources of income, from salary to side pursuits. Then, break down your fixed expenses – everything from household expenses to groceries and transportation. This should be around 50-60% of your total take home pay.
Next, make sure you allocate money for savings and debt payments. This can be around 10-20% of your family’s total income. Savings are anything your family is saving for, like new furniture for the house or maybe your next family vacation.
Another 10-20% should be reserved for long-term investments. This is often retirement savings for working adults at home. If there is money left over, you can set aside some money for young children to start, or for seniors living in your home who may be retired.
Finally, 10-20% of your income should be given to non-guilty spending. This can be for fun with your family, like going out to the movies or treating yourself to a nice meal. Every home is different, so spend this money guilt-free on whatever makes you all happy in your home.
Note that I have given you scope to work around them, which is the beauty of the Conscious Spending Plan. You’re not tied down to a percentage limit every month, and you’re more than welcome to adjust that range depending on your family’s size and current expenses. For easy tracking, use a tool like YNAB, or if you want a ready-made solution, try Conscious Spending Plan template, which you can easily modify to suit your family’s needs.
What is really eye-opening is my conversation with Lucas and Trin and how they justify overspending on food, simply because it is considered a “basic necessity.” This is a mindset that many families fall into—thinking that certain categories are immune when it comes to cutting costs.
However, the truth is that even “needs” can and should be improved in a family’s spending plan if there is a need for it. Food may be important, but without setting realistic goals, it’s easy for spending to get out of control. Creating a Conscious Spending Plan for your family will force you to take a closer look at where your money is actually going.