It’s quite possible that you’ve got maybe one or two bank accounts for your family. Are we right? Generally, this will be a checking account and a savings account. However, it may be time to think of an alternative and more comprehensive, but effective way of handling your family’s income, outgoings and banking with several additional accounts.
When you file your important documentation and paperwork, do you file it away all in one cluttered and messy pile or drawer? It’s likely you don’t, if you take care. You probably keep everything filed like with like and in some sort of order. You can do the same with your finances and although it may seem like overkill it can help to have more than just the standard one or two. In the following post we will discuss some of the bank accounts you should have that you probably didn’t realise you should have. Take these ideas into consideration when you are next looking for accounts from banks near Austin Tx.
Emergency Savings for the Family Account
A good rule of thumb when it comes to savings for your family is that you should contribute 20%of your family income to an emergency savings account. This should be used for exactly what the name suggests – emergencies. We’re talking last resort stuff here. Never use it to pay off debt or any other problems you could, in theory, resolve with other solutions.
Ideally, you want to make sure you have access to at least between 6-months and a year’s worth of money to live off if the proverbial hits the fan.
Family Saving Account for Non-Emergencies
Look at this account as a sort of holding tank. This is a savings account for your family you can use whenever you want or need to. You should aim to have at least 3-months of money in there that will support your family in the event of a slight and short-term emergency or crisis. You should be looking to use it for saving those pre-payment funds for things like new furniture for your home, repairs, vacations, new cars, down payment on house, weddings etc etc.
Checking Account for the Family Income
You should have a main checking account that acts as a sort of headquarters for your family’s finances. This is where all your income should be directed to first. From here it can then be transferred into the relevant accounts. It is also the place where all your family’s bills will be paid, and you need to make sure the money doesn’t stay in there fore too long. Setting up automatic transfers is a good idea, or you would be more likely to spend it (if you can access it, you will spend it).
Separate Husband and Wife Checking Accounts
Although it may seem a little old fashioned, this is a great way to create responsibility and accountability for each parent. By having a checking account with a monthly budget, there is a spending limit for each partner, so that no-one is dipping into the family’s account for their own stuff.