With the way the cost of living continues it is more important today than ever before to get your entire family to agree to a family budget. Not only will this help you from getting into debt you can't afford to be in but it will help the family feel more united if everyone is involved in the budget. This will also be a good way to teach your children the value of a dollar at the same time. Something they can take with them when they grow up.
The first thing you need to do is to make sure that you let the entire family get involved in helping to set up the family budget. Each person in your family should be allowed to get involved in one way or another when it comes to helping make the family budget. If everyone is allowed some sort of say, then they are going to be more willing to stay within the budget that is laid down.
Next you need to add up all of the income that is brought in and then add up all the different expenses that you incur during the month. As with all budgets you need to know how much money that you have to work with in order to have a budget that will work. Having the family in on this will give them the opportunity to decide where to make cuts or how to spend less money.
Make sure that you let everyone everyone have some say or opinion about the different cuts in the budget. This means that every person who is involved in the set up of the budget and maintaining it needs to be allowed to have an opinion on where the trimming of the budget should be. It might be surprising to find out what your child is willing to give up to help out.
One of the things that might need to be cut is your child and their spending. This means that there may be a need to reduce the amount of allowance that your child is use to receiving. Or, you may instead ask that your child buy things out of their allowance that they didn't use to buy with their own allowance. That could mean in order for them to say continue to get their favorite cereal that they pay for it themselves. This might not be easy to do but in the long run it will be a good learning experience for your child.
You also might need to look at other ways to bring in more income. If it turns out that you simply don't have enough money at the end of each month to make it through to the next month you may need to figure out what you can do to change that. This could be that you or your spouse get an extra job to bring in some extra money. Even the kids can help to bring in more money if needed. They can mow lawns or if they are old enough they can do some neighborhood babysitting. This is an important issue and the entire family will need to be on the same page when making these kinds of decisions.