Family Records: Keeping Organized and Safe

Family Records: What to Keep Where, and For How Long

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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 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 ordelegated, 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. Continue>>>

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Family Records: What to Keep Where, and For How Long

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What Kind of System Is Needed?

How Does One Organize A Record System?

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