Released April 24, 2009
MARION, Ark. - Families feeling added stress from the financial crunch can find some relief in practicing positive money techniques, says VeEtta Simmons, Crittenden County extension staff chair with the University of Arkansas Division of Agriculture.
"Money is often on the mind of many families," says Simmons.
Prioritizing expenses is one way to work through reduced income. For example, make a list of the family’s most important expenses. "This means things you must have or do," says Simmons. Then, make a family spending plan to determine where the money should go. Decide where the money will be spent and stick to the spending plan.
"With less income, each spending decision is critical," says Simmons.
Family communication is important when expenses are involved. "Families need to work together to reduce spending," says Simmons. "When this is done, families are more likely to succeed."
Most families give high priority to fixed expenses, such as rent or mortgage, insurance premiums, car payments and installment debt. Flexible expenses, such as food, utilities, clothing and household expenses are more easily adjusted.
Simmons offers a series of questions families should ask themselves:
- Can a less costly item be substituted?
- Can resources be conserved, avoiding waste?
- Can money be saved with family effort?
- Can things be traded or shared with others to cut costs?
- Can it be found for free or at low cost?
For more information on curbing excessive spending, contact your county extension office or visit http://www.uaex.edu and select Families and Consumers, then Money.
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http://www.uaex.edu/news/april2009/0424money_spending.htm
Contact: Elizabeth Fortune, (501) 671-2120, efortune@uaex.edu
