Who manages the finances in your house?

Posted in: Finance Last updated: 11 May 2010

Billionaire Sir Richard Branson admitted that his wife manages his family's money because she is more financially astute than him. Despite managing a worldwide business empire worth billions of pounds, the chairman of the Virgin Group admitted that his wife checks to see that he is "not spending too much money on silly things or the latest new gadgets"*.

Managing yourself, let alone a family, is a full time job. It's all too easy to be reactive to day-to-day priorities rather than concentrating on medium to long term planning. If you are the one taking care of the pounds and the pennies in your household you may be confused about when to save, where to save, how to budget and when to spend.

Putting your finances into perspective

Personal life choices throw up scenarios which could mean big purchases, therefore it might be useful now to plan ahead and focus on:

  • the short term - up to one year
  • the medium term - five to 10 years
  • the long term - 10 years and over

It's worth taking a moment to think about your needs for the future. Think about things you may need in the next couple of years like a car or new furniture for the house or plan for bigger things in the future like marriage, babies and a new home. Also, don't forget about the long term plans like retirement and pensions. It may be worth sitting down by yourself or as a family and jotting down some of your short, medium and long term goals.

No matter who manages the finances in your house, planning for the future will ensure you are in a better position to cope financially with the things life may throw at you.

Note: Whilst we take care to ensure Hub content is accurate at the time of publication, individual circumstances can differ so please don’t rely on it when making financial decisions. OneFamily do not provide advice so it may be worth speaking to an independent financial adviser about your own circumstances.