Budget

• Discuss ways to cut the budget and agree that every member of the family will contribute.dotted line image by Chris Davis from Fotolia.com
  
  The budget is a basic element of any successful family financial venture. Whether you're interested in saving money for a family trip or would simply like to stop digging yourself deeper into debt, it is important to keep track of where your money goes. One of the most essential elements required to make a family budget work long term is to obtain buy-in from the family. Even the youngest members of a family will be affected when parents become determined to tighten the family money belt. To get started, call a family meeting and discuss your financial goals as a family. Decide together what can be cut from the budget to save money. You may be surprised what your children will be willing to give up when they have a clear understanding of the goal the family is attempting to reach together.
  
  

Debt

• More Americans are carrying cash to do their day-to-day shopping rather than using charge cards.budget, payment allocation image by Kalani from Fotolia.com
  
  The most important lesson a family can learn about debt is that they should avoid it at all costs. Teach your children that if they cannot afford to pay cash for the things they want, then they cannot afford to purchase them. According to the National Retail Federation, credit card spending peaked in 2007, just prior to the recession, and has trended lower since. While the days of easy credit may be over, it is important for families to make a conscious choice to avoid debt. The best way to teach this essential lesson to your children is to set the example.
  
  

Savings

• Your children can finance their own educations if necessary.college's building image by Leonid Tarassishin from Fotolia.com
  
  Famed financial adviser Suze Orman says if you have to choose between saving money for retirement and saving money to send your kids to college, you should choose to save for your own retirement. Your children can always finance their educations if necessary, but there is no way for parents to obtain financing to support themselves in their own retirement.
  
  And, while saving money for vacations and new cars may sound like more fun, it is important not to even think about such luxuries if your family is unable to afford even basic retirement savings.
  
  

Financial Freedom

• Achieving financial freedom will allow your family to pursue even greater goals.freedom image by Stanisa Martinovic from Fotolia.com
  
  Personal-finance expert J.D. Roth says, "As you work toward financial freedom, you make it easier for yourself to accomplish other goals." Financial freedom is achieved when the family spends less money than it makes, saves money every month and has enough liquid assets in reserve to meet all financial obligations for at least six months in case of emergency. Financial freedom allows the family the opportunity to make life choices that will make them truly happy rather than being forced to make choices to fit within strict budget constraints. Says Roth, "Debt is slavery because it limits your options and prevents you from seizing opportunities. But financial freedom allows you to pursue your own goals, to build the life you've dreamed of."