Teaching Your Friends and Family To Handle Finances

Courtesy of Elevate Mortgage Group

If you have friends and loved ones who struggle with money, you may be looking for ways to help them improve their financial situations. Whether visiting a financial counselor is out of the question due to finances or personal preferences, it’s important that you take the time to assist your friends and loved ones in developing a solid understanding of how to improve their finances. Here’s what you need to know.

Talk About Benefits

First off, make sure you explain things thoroughly to your loved ones. Explore the benefits of saving money and the perks of decreasing debt. Chances are that your friends and family members may not realize just how straightforward improving their financial situation can be. Not only will they feel less strapped between paychecks, but they’ll improve their credit scores and experience greater economic freedom. When you emphasize the perks of saving money, rather than the problems with debt, you may find they’re more receptive.

Create Resources or Templates To Follow     

Courtesy of Huffington Post

One of the best things you can do as you work with your friends and family members to improve their financial situations is to create resources/templates to follow. Consider managing worksheets they can use to assess their personal expenses compared to their income. This is an effective way for your loved ones to start determining which areas of their life they can reduce spending and which areas might need better management. Resources also offer encouragement and reasonable guidelines for beginning to pay off debt and start saving money.

Offer Realistic Examples

Make sure you use realistic examples as you discuss finances. Talk about the specific ways your loved ones can reduce their spending. For instance, if they have several video streaming subscriptions, reducing the number can help save money. If they enjoy eating at restaurants, minimizing this activity can further reduce the amount they spend.Additionally, you can also give some personal suggestions on what they can do, For example, if your friends or family have a large household with many children, you can give the suggestion to store children’s clothes and furniture to use again later, and mention the benefits of not having to buy the same items again and again for younger children. By choosing specific monetary examples, you can help the people you love most begin to start saving money and find financial freedom in their lives.

Taking the time to help the people you care about most to learn how to handle their finances and even get out of debt is an incredible decision. Working with the people you love offers an incredible number of benefits. You’ll grow closer with the people you care about while helping them learn the skills they need to succeed financially in the future.

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