{"id":14182,"date":"2025-12-03T00:20:00","date_gmt":"2025-12-03T06:20:00","guid":{"rendered":"https:\/\/www.discover.com\/online-banking\/banking-topics\/?p=14182"},"modified":"2026-02-03T16:45:56","modified_gmt":"2026-02-03T22:45:56","slug":"family-budget","status":"publish","type":"post","link":"https:\/\/www.discover.com\/online-banking\/banking-topics\/family-budget\/","title":{"rendered":"Family budget basics: How to make a plan that works"},"content":{"rendered":"\n

Groceries. Gas. Maybe even cable if you haven\u2019t cut the cord yet. You\u2019re probably already familiar with the expenses that make a household budget, but have you thought about building a family budget? <\/p>\n\n\n\n

A family budget can get everyone in your household on the same page when it comes to money. It isn\u2019t about pinching pennies or building a bigger bank account balance. Instead, a family budget unifies everyone around common goals that are possible to achieve through strategic spending and saving. <\/p>\n\n\n\n

Before diving into the details of creating a family budget, let\u2019s start with the basics. Here\u2019s how the experts define a family budget:<\/p>\n\n\n\n

What is a family budget?<\/h2>\n\n\n\n

A family budget is a game plan for your family\u2019s money. Your plan identifies where and how your money comes and goes by focusing on income and expenses. Importantly, it also reflects your family\u2019s goals and values by how you spend and save. <\/p>\n\n\n\n

Jen Smith, personal finance writer and creator of a financial wellness blog, says a family budget can be a simplified version of what you do when you make your household budget. For example, it may only include line items that have a direct impact on the kids, as opposed to including every single expense, Smith says.<\/p>\n\n\n\n

\u201cWhile it\u2019s important to start talking about budgets and money with kids, you have to simplify it to a level they\u2019ll understand and won\u2019t be overwhelmed,\u201d she says. The results will be worth it, she adds. \u201cPlanning a family budget with your kids will help them learn the importance of earning money, how to spend it, and what happens when it runs out.\u201d<\/p>\n\n\n\n

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How to make a family budget and stick to it<\/h2>\n\n\n\n

Your next question might be: How do you make a family budget? Smith and Kevin Payne, creator of a financial blog, provide the following tips to help you plan a family budget:<\/p>\n\n\n\n

Invite everyone, from toddlers to teens <\/h3>\n\n\n\n

If you\u2019ve already gotten comfortable with how to make a household budget, you might be tempted to take over and do all the heavy lifting yourself. Not so fast! <\/p>\n\n\n\n

Creating a family budget should be a family affair. After all, \u201ckids are a part of the family,\u201d Payne says. \u201cThat doesn\u2019t mean every<\/em> money decision is a family decision, but kids feel a sense of ownership and responsibility when you include them in money discussions.\u201d <\/p>\n\n\n\n

Creating a family budget together boosts everyone\u2019s buy-in, which gives your budget real staying power. <\/p>\n\n\n\n\n\n\n\n

And everyone truly means everyone\u2014from your little ones just learning their times tables to teens with their own checking accounts and cars. Research has shown how important it is to have money conversations with your family. In fact, a study by Brigham Young University researchers reveals that toddlers and young children are already forming money habits, values, and attitudes.<\/p>\n\n\n\n

Talking about money doesn\u2019t have to always be serious, Payne says. You can even make a game out of it: \u201cFor example, if you\u2019re out shopping, make your kids guess the grocery bill amount when checking out,\u201d he suggests. These everyday interactions get your little ones comfortable with talking about money\u2014laying the groundwork for your family budget meetings. <\/p>\n\n\n\n

Clear away any distractions and offer incentives <\/h3>\n\n\n\n

To make your family budget meeting a success, choose a time where no one is stressed or distracted by competing priorities, whether that\u2019s work or after-school sports. When creating a family budget, consider having family members leave their smartphones or other devices in another room to keep distractions at bay, Smith suggests.<\/p>\n\n\n<\/div>\n\n\n

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“Planning a family budget with your kids will help them learn the importance of earning money, how to spend it, and what happens when it runs out.”<\/p>\n