How To Handle Family Conflicts Related To Finances

In families it is common for there to be problems related to money, be it a lot or a little. The human being can be very greedy and not think about others. But also, family conflicts related to finances have to do with a lack of organization or because there are different points of view.

That’s right, since if, for example, some members are wasteful and the other savers, there may be problems and discussions. Next, we will tell you how to handle these situations.

Family disputes related to finances

The couple

Marriage is supposed to be a union in which everything is shared, and that includes money as well. Although at present many couples choose to pay their own each, the truth is that in most cases the profits are combined and everything comes out of the same place.

In this sense, many problems related to money can arise in the couple. In fact, it is one of the main issues that provokes discussions and separations. And this is closely related to the objectives and habits that each one has. Yes, because if, for example, one of the parties considers certain expenses “essential” and the other person considers them “unnecessary”, a conflict will be generated.

There are also problems when one earns more than the other and has the attitude of “I’m the one in charge” because money is a symbol of power. This, without a doubt, is unfair and wrong.

All this is evidenced in How to resolve family conflicts , a guide carried out by professionals from the General Directorate of Family of the Department of Family and Social Affairs of the Community of Madrid.

To avoid relationship conflicts related to finances,  as a first measure it is important that you talk and reach an agreement : how much money will be available for common expenses, for savings and for additional expenses, etc.

It can also help to pool a fund, list detailed monthly expenses, and review the budget every two to three months. Clear accounts can reduce friction and unpleasant moments.

Inheritances, one of the family conflicts related to finances

You don’t have to be a millionaire for this kind of thing to happen. We can receive money without expecting it and that turns into a destructive family conflict. The same if we have a flat, a car or even furniture. Surely you know of cases of siblings who fight over what they receive when their parents die.

Family finances when you have joint ventures is another very recurring  theme  in family conflicts. For example, if a father and son open a store, it is likely that friction will appear soon.

How to act in these cases? It is true that you cannot know how the other will react when there is money involved, but it is always good to anticipate the facts. When everything is in harmony, it is the ideal time to talk about certain complicated or taboo topics. Bringing them to light does not make us bad people, but quite the opposite, since we will be looking for solutions and being cautious.

If an agreement cannot be reached, an outside professional can always be used to  delineate earnings or organize properties and inheritances.

The credits

Another reason that leads to family conflicts related to finances is money loans. Although we all belong to the same family, this does not mean that we have the same skills or habits. Even among siblings who have been raised the same way, one can be successful and another continually on the brink of bankruptcy.

But beyond that, the truth is that when someone decides to lend money to a relative, there may be conflicts. Even if someone borrows a certain amount and it is denied. And if the loan is granted, but not repaid in a timely manner, the conflict is assured. For this reason, on many occasions it is preferred to request a loan from a bank before the family.

One of the best ways to avoid conflicts of this type is not to spread them to other family members. Also,  n or would remain badly written agreement. In this sense, if you are going to lend money to someone in your family, you have every right to sign a valid document. If this person gets angry or offended, it may not be such a good idea to give them what they ask for.

In short, it is not impossible to handle family conflicts related to finances if we speak correctly, if we anticipate the facts and if we ask for help from people outside the relationship. We hope that these tips will help you in case you find yourself in this family situation.