Managing Family Living 3.Share feelings/thoughts Developed by Ground - - PowerPoint PPT Presentation

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Managing Family Living 3.Share feelings/thoughts Developed by Ground - - PowerPoint PPT Presentation

1.Respect the views of others 2.Listen to each other Managing Family Living 3.Share feelings/thoughts Developed by Ground Rules Expenses Elizabeth Kiss, Ph.D., 4.Be open to new ideas Associate Professor and Extension Farm Financial Skills for


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Managing Family Living Expenses

Farm Financial Skills for Kansas Women in Agriculture January 29, 2020

Developed by Elizabeth Kiss, Ph.D., Associate Professor and Extension Specialist, College of Health and Human Sciences, dekiss4@k‐ state.edu

Ground Rules

1.Respect the views of others 2.Listen to each other 3.Share feelings/thoughts 4.Be open to new ideas 5.Suspend judgement

Managing Family Living Expenses

Financial Goals Income Expenses

Tracking Your Family and Household Spending

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Farm‐Family Financial Challenges

Farm income can be irregular and uncertain Family housing expenses may be lower Food expenditures may be lower Insurance and health care costs can be high

Farm‐Family Financial Challenges

Farm and family compete for the use of cash Household expenses are small compared to farm expenses Business items are tax deductible No automatic retirement plans funded each month

Actions for Balancing Income and Family Living Expenses

Decide how income will be divided between family and farm

  • bligations before it is received

Base decisions on expected income and expenses as well as goals and priorities Can be challenging but can reduce conflicts and confusion

Actions for Balancing Income and Family Living Expenses

Establish separate accounts for the family and the business Transfer money from business account to household account according to household spending plan Have a separate savings account for “future living expenses” and transfer to household checking account

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Actions for Balancing Income and Family Living Expenses Determine income available to the household Identify major sources of cash income Calculate the average monthly amount Note the months you are likely to receive income from each source Actions for Balancing Income and Family Living Expenses

Accurately estimate/track/plan for household expenses Create a spending plan (budget) for household expenses When household expenses are greater than income allocated to family living expenses there are three options Increase income Decrease expenses Do a bit of both

Action can be Hard Target one or two areas at a time Ask family members for suggestions about how to achieve changes in targeted areas Develop an action plan Evaluate action plan and overall spending periodically Enjoy the feeling of control that develops The Power of One….

One financial thing I’m proud

  • f…

One financial promise to myself… One thing about our family finances I’d like to change… One financial dream I have for myself…