Families are minibusinesses!
Families perform the same tasks as
businesses -- they plan, buy, save and invest -- but usually on a
smaller scale. That is why keeping family records is just as
important as keeping farm or business records.
Why Should You Keep Records?
Keeping family records in a
business-like manner saves time, trouble, money and frustration.
Record keeping is important because:
- Income tax preparation requires
information on tax deductions; records substantiate deductions.
- Death, fire or theft may call for
records to establish ownership; records help in estate settlement
and insurance or benefit claims.
- Records document certain
transactions; if someone makes a mistake or official records are
destroyed, your records may be needed.
- Records could shorten the time it
takes to collect insurance, military benefits, veteran's benefits
or an income tax refund.
- Evaluating past records provides
information for planning future spending. Records provide a
summary of your financial situation and can help you keep a close
tab on where the money goes.
What Kind of System Is Needed?
Use a system that fits your family's
lifestyle. The family finance center might be as elaborate as a home
office or as simple as a drawer in the kitchen or a file cabinet in
the family room.
It is important to decide who will
take major respon-sibility for record keeping in the family. All
members -- including children old enough to understand -- should
know how the record-keeping system works and how information can be
found easily. Some of the tasks can be shared or delegated, but one
person with the skills and interest should take the leadership.
Develop a regular schedule for
bookkeeping and resolve to stick to it. A routine will actually
reduce the amount of time you spend on record keeping.
A well organized record keeping
system will eliminate confusion when important papers are needed.
Getting started on a record keeping system may be time-consuming,
but once it is set up to meet your family's needs, maintaining the
system will be easy.
How Does One Organize A Record System?
Some basic records should be carried
with you at all times. Your wallet, billfold or purse is a small
record system. Keep identification with you, including your driver's
license, name of person to notify in case of an emergency, credit
cards, social security card and organization membership cards.
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