Family Finances: Your Friend or Foe?

2. Do you save a fixed amount of money every month?

• Yes, we pay ourselves first.
• There's no money left over to save!

3. Which most closely describes your attitude toward major purchases?

• We save up and then pay in cash.
• We put it on the credit card and then pay it down.

4. Does your family have an easily accessible emergency fund?

• Yes, we have at least three to six months' worth of expenses saved up in case of an emergency.
• No, we'd have to tap retirement funds or use credit if an emergency arose.

5. Which most closely describes your mortgage situation?

• We have a fixed-rate mortgage that we overpay each month.
• We have a fixed-rate mortgage, and we pay the minimum each month.
• We have an adjustable-rate mortgage that has recently reset or is due to reset soon.

6. Are you and your spouse planning for retirement?

• Yes - we contribute fixed amounts to at least one retirement plan each month.
• Does buying lottery tickets count as a plan?

7. Do you have a monthly budget?

• Yes, down to the penny.
• Nope.

8. What is your philosophy about giving money to your kids?

• Whatever they want, whenever they want it!
• They get a weekly allowance, regardless of what they've done to earn it.
• They get paid for each chore completed.

9. Do you talk to your kids about money - the importance of saving, the pitfalls of credit, and setting budgetary priorities?

• We sure do.
• It's never come up.

10. Is your home energy-efficient?

• Yes, we've improved our home's energy efficiency by taking steps such as installing compact fluorescent lamps, sealing our windows, and checking the insulation.
• We've never thought to check.

11. Finally, which most closely describes your attitude toward your family's financial situation?

• We're one missed paycheck away from disaster.
• We're not going to retire anytime soon, but we have enough for what we need.
• We're on top of our finances and confident about the future.