What does it mean to manage your family finances like a business? If we do some quick mapping from the terminology of personal finance to more formal business terminology, we can see that personal and business finance are the exact same from and accounting perspective:
Paychecks = Revenues
Things you buy = Expenses
Things you own = Assets
Things you owe = Liabilities
Your net worth = Equity
Accounting equation is
Assets = Liabilities + Equity.
“Equities” in a personal context are Assets, but “Equity” in a personal balance sheet sense is essentially your net worth. So on a personal Balance Sheet, Equity is what you have in Net Worth when all of you Debt is paid off.
On the other hand, if you were to imagine a personal income statement, once you take your regular paychecks and other income and subtract out what you spend in a month, what you are left over is your personal net income.
So since your personal finances can be seen in the exact same way as a businesses, really everyone should be running their households like a business. Everyone could incorporate their families or create general partnerships (with unequal voting rights for the parents) and run that for-profit enterprise. Lifetime cumulative net profit BTW is called an Inheritance.
So talk to Aum and let us help you think about the personal profits you are creating and how you will distribute them to yourself.