Economic down turns and recessions can be very hard on families. In the 2008 recession, and currently during the Covid-19 pandemic we see the impact it’s having on families in the form of high unemployment. Some explicit impacts recessions have on families is loss of buying power, the inability to keep up with recurring bills, and the inability to keep up with financial emergencies. These negative impacts can drive many families deep into debt and even destroy families.

Recessions, especially a prolonged one, have other impacts on families that are not so obvious. One impact is, college graduates delaying moving out and starting a family due to lack of jobs. Another impact is an increase in depression and suicide as result of feeling hopeless due to not being employed. These underlying impacts get less attention in the media compared to job reports, Gross Domestic Product (GDP) numbers, and the stock market indexes. Now more than ever families need to band together to deal with the challenges that they will face.

Families can better deal with a downturn in the economy and address major financial goals and issues if they run their household like a business organization. With each economic downturn and financial hardship a family will face, it’s very important for members of a family to come together and work as a team. One way to do that is if families run their household like a business. We will discuss four ways families can operate like a business and the benefits of doing so.

1. HAVING A MISSION STATEMENT

One of the things a family can emulate from a business organization is having a mission statement. Dictionary.com describes a mission statement as a “formal summary of the aims and values of a company, organization, or individual.”  Having a mission statement will give your family direction, focus, and a sense of identity. A properly written mission statement will reflect the family’s values and purpose. This is extremely important during times of hardship and uncertainty. 

Here are some examples of mission statements that can help you create your own. Information taken from www.fond.co.

Amazon “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.”

JetBlue “To inspire humanity — both in the air and on the ground.”

Nike “Bring inspiration and innovation to every athlete in the world.*

                        *If you have a body, you are an athlete.”

Keep in mind that it may take some time to come up with a mission statement for your family due to the fact that you may not have thought of your family as an organization. Also don’t worry if the mission statement that you come up with evolve and change over time. Thinking of a vision for your family is more important than coming up with the perfect mission statement. So don’t get caught up in creating perfection, think more of functional.

Here Are Some Examples Of Mission Statements A Family Can Adopt:

Example 1

“To love and support each member of the family through their own journey and challenges of life.”

Example 2

“This family conducts itself with integrity and exhibits strong moral character. We will have compassion and understanding for every individual we encounter.”

Example 3

“This family will work hard and manifest passion in everything we do.”

Example 4

“We are responsible with our money, time, and energy.”

These examples can help you formulate your own mission statement for your family.

2. ASSIGN ROLES & RESPONSIBILITIES 

The second way a family can run their household like a business is by assigning roles and responsibilities. The assigning of roles and responsibilities are common in an organization, a business, and a company. We are familiar with such titles as CEO, Director, Supervisor, and more. A family can benefit largely from assigning roles to each member of the family. Assigning roles to members of the family don’t have to be as formal as an organization. Instead of focusing on titles focus on duties and what can be gained from having those responsibilities. When responsibilities are assigned to members of a family this will make them feel closer to other members and encourage them to work harder.

Take for example a family of four with two parents and two children. The parents can assign duties to each member of the family including themselves. The children could be responsible for cleaning, taking out the trash, choosing dinner, or family entertainment. The adults will already have their roles and responsibility but it may not be clear to the children depending on their age. It is important to make clear what are the roles and responsibilities of the adults to the children without burdening them with the weight of being an adult or a parent. It is also good to rotate roles and responsibilities so everyone has an opportunity to learn and grow and be versatile.

Both children and parents can benefit from the assignment of roles and responsibilities. The children benefit because they learn how to be more responsible, new skills, independence, and it prepares them for adulthood. Parents can benefit because it improves their delegation skills, they get extra help around the house, and the peace of mind that they are preparing their kids to be independent.

Also assign and rotate financial roles among each member of the family. A member of the family could be responsible for vacation saving, dining out saving, or a utility bill. This will get the family to talk more about money and make the topic less taboo.

3. HAVE FAMILY MEETINGS

Many families are already incorporating family meetings in their lives but they usually have them as a result of a major life event. Families should incorporate family meetings regularly and consistently. Once a week is a good time to have family meetings.

Family meetings are a good time to discuss the goals and plans of the family. Use this time to catch up with each member of the family. Ask about the children’s day and their week. Parents should also talk about their week but be mindful of discussing certain topics with kids. You want to get kids involved but not burden them. There are things despite your efforts you can not keep from children, it is important for them to see you handle difficulties in a calm and healthy manner. 

Also family meetings do not have to be as formal as a business organization. Make it fun. Something as simple as a dinner party once a week where you discuss the business of the family then play games after can be very fun.

Also due to age and sensitivity of kids you will definitely need to have two meetings. One with the kids and one with just the adults. There will be matters that will need to be discussed among the adults that the kids should not be a part of. These matters may be summarized later for the children. Family meetings benefit the kids but also the adults. Many times adults can feel like they are going it alone even when there are other adults in a household. Do not try to go it alone. Also this will help adults work on their communication skills. Remember to have money discussions at each meeting. You should discuss family budget, saving plans, and financial goals.

4. SEEK PROFESSIONAL HELP

When businesses encounter problems outside of their scope of expertise they seek consultants. A company that is responsible for manufacturing car parts plans to expand their business by building a new factory. They hire a construction company to quote the cost, the time it will take, and to proceed with the building of the new factory. The car manufacturing company is not in the construction business so they should not build their own factory.

Families should also seek professional help when they are faced with problems outside their scope of capabilities.  In a lifetime a family is bound to encounter mental, emotional, financial, and legal problems. It is important to seek the appropriate professional for each of these situations. For your financial issues seek out a financial advisor, an accountant, and a tax professional. When a person gets sick they seek out a doctor. They should also seek out such professionals as a lawyer and a therapist before a potential problem becomes detrimental.

Cost can be a major factor in why many families do not seek professional help. Keep in mind that the cost you are avoiding to pay today can be exponentially higher in the future. If cost is a factor consider these tips when seeking professional help.

1. Inquire About Cost.

Many people avoid seeking professional help because they are anticipating a high price outside of their financial capabilities.  By doing a quick google search or calling your local professional you may find out that the cost is within your range.

2. Free Consultation.

Many professionals provide free consultation. A lawyer may not charge a fee to discuss your situation and options, and only charge if they take your case. A free consultation with a professional can provide a lot of information that can put your mind at ease if you’re dealing with an issue.

3. Payment Plans

If you’re seeking professional consultation and the entire sum is too much, consider a payment plan. Many professionals offer many options and ways for a client to pay for their services. Many professionals offer discounts depending on a person’s circumstances and means.

4. Pro Bono 

Some professionals offer free services as a way to give back to a community, promote their services, and gain goodwill. Professionals usually offer this to those who are low income or facing a life crisis. It is worth exploring this option for whatever circumstance you may find yourself in.

5. Community Organization

Sometimes to get the help you need you must be creative. Explore any organization that you are apart of or have access to. Reach out to your local community to see if they offer services that can benefit you. You could be eligible for certain programs because you are a member of the community. Also you can reach out to local churches for help, advice, and guidance. A church will offer help to those that are in need, so don’t worry about not being a member.

Another factor that keeps people from seeking professional help is shame. Do not let fear of embarrassment be a barrier for you seeking help. Seeking professional help may be taboo in some communities but an adult owes it to his or her family to do whatever it takes to put them in the best situation to succeed. 

FINAL THOUGHT

These four suggestions are a great start to help families think and act more like a business. Economic down turns are only one challenge among many challenges that a family will face in a lifetime. A family that has a mission statement will have unity and be better prepared to face any challenges. Delegating roles and responsibilities will spread around the responsibilities of the family and increase the odds of success. This will also better prepare children for adulthood and running households of their own. Family meetings will create stronger bonds among family members and improve each member’s communication skills. No one is an expert in all things. This is true for adults and parents despite what kids may think. Emulate business organizations and seek professional advice. Families can benefit profoundly by adopting these ideals.