Managing Money When It's Hard to Make Ends Meet

Does your emergency fund add up to less than three months of living expenses? Are you paying only the minimum amount due on your credit cards each month? Are you arguing about money in your household?

If you answer yes to any of these questions, it's time to talk about money.

Money is a common problem
Regardless of your income, age or education, money can cause hassles and arguments. Lack of open discussion about money and feelings about money often lie at the root of family financial problems.

When talking about money:

• Clearly identify the issue at hand.
• Recognize that whoever earns the money doesn't also earn the right to dictate how it should be spent.
• Let each household member freely state wants, needs and personal feelings.
• Listen carefully.

A spending plan helps you spend less than you make. Here's how:

Write down every dime, quarter and dollar you and your household members spend. Record your expenses on the Monthly Expense Chart. You may be surprised to see how you are spending your money.

After a month of charting your expenditures, think about how you and your household members spend money. Can you make changes that allow you to pay more than the minimum on your credit cards?

• Did you find yourself buying lottery tickets?
• Are you buying coffee you could make at home?
• Are you making unnecessary trips with the car and using more gas? Can you combine trips or eliminate trips by carpooling?
• Are you bringing your lunch to work or are you buying lunch at work?

For more information
Develop a Savings/Spending Plan
Browse our money-management Web pages
Attend a workshop or other money-management event
Consult a county Extension family & consumer educator

Written by Suzann Enzian Knight, Extension Family Resource Management Specialist