Financial goals without a blended family plan is just a wish

Financial discussions should come into play early on as you are planning your blended family. If you and your spouse have put off this discussion, now is a good time to have it. Unless you have a financial plan you can both agree on, your step kids and your entire step family could become a casualty of poor money management. For more detailed suggestions on talking about blended family money matters, see Chapter Four, “Financial Discussions,” in Blended Family Advice, but here are a few talking points.

financial planning should be considered in a blended family

Joint or separate accounts

Some considerations for maintaining separate accounts include separate incomes from working outside the home, and single-party expenditures or receipts such as child support, insurances and health care costs, tuitions, etc. The specifics of how you handle the blended family finances are not as important as being open and above board, and fair to everyone. One party does not want to feel as if his or her money is being squandered on step kids or an ex-spouse. As with every aspect of blended family living, communication is crucial.

Creating a budget

Making an effective financial plan for your step family begins with a written and complete budget that includes virtually all financial receipts, payments, and debts. Again, see Blended Family Advice on financial discussions for help in designing your budget, or go online to see many excellent examples of family budgets.

Make a formal financial planning agreement

Many financial planning has begun utilizing the “Blended Family Financial Planner,” part of the blended family bonus material in Blended Family Advice. It begins with a Blended Couple Financial Pledge, which sets out the basis for a successful blended family financial plan.

·         Together, we will figure out a way to meet all of our financial needs

·         Together we will provide for our blended family

·         We will honestly discuss our goals and dreams

·         If something isn’t working, we will come together and re-discuss our plan

When the two of you work together to make a serious financial plan for the benefit of your blended family, you help take your goal of a successful and solvent blended family from wish to reality.  For more information on how to successfully plan the financial aspects of a blended family, visit The Blended and Step Family Resource Center.