Rising unemployment and falling incomes are among the leading causes of default in Brazil, but they are not the only ones. Lack of financial education is also a major factor in household indebtedness.
In August 2019, for example, the number of households with debt represented 64.8%, according to the National Confederation of Trade in Goods, Services and Tourism (CNC). On the list of major debts are credit card, booklet and car and home financing .
Apart from debts, the number of delinquents, which are those with overdue accounts, continues to rise. The later bills are the basic ones, like water and light .
When this happens, it is a sign of something that is not doing well in the financial education of families. Let’s understand how it is possible to improve.
Find out where family money is being spent
In everyday life, we often buy products on impulse that seem irrelevant in the budget. However, these small purchases represent a significant value at the end of the month. Therefore it is important that all expenses are accounted for .
Rent, water bills, electricity, internet, telephone, grocery shopping and even the ice cream that your child asks for on the street should also be noted. Excel spreadsheets help, but if they look too complicated for you, be aware that there are applications that help with this control.
It’s not a neurotic thing. Jotting down expenses lets you understand where you spend most and how you can save.
All members must participate in financial education.
From the child to the elderly, everyone must be integrated. Therefore, call the family for a conversation and together talk about dreams and future goals. If the older child wants to go to college, for example, it is natural for the savings to start now.
A reserve fund for emergency and future expenses is ideal. There is only one caveat: no saving what’s left at the end of the month, because that’s a way to fool yourself . Then propose to members monthly savings goals.
If the household income is fixed, organize a sum that everyone can save. If income varies, monthly savings percentages may be established.
Treat this amount or percentage as if it were a portion of a bank debt. It is this commitment that really helps the family save money.
Review which area you can cut spending on
Gym, manicure and pedicure in the salon, food outside the home and baths in pet shops are expenses that are not always used with due moderation.
It is normal for families to pay gym memberships, for example, and attend only twice a week. So, how about running in the park, on the street or even changing the gym’s monthly fee for a specific sport?
Research which options are most popular in your neighborhood. Some municipalities offer public gyms.
As for other expenses, see how they can decrease. Nailing at home, preparing meals in advance so you don’t have to eat out, bathing pets in the tank or even showering are all ways to save money . Trading products instead of buying also helps.
If everyone is participating in financial education , performing these activities becomes more fun. Cooking with children can be a different and approaching experience.