Wednesday, April 29, 2009
Ahhhh, this lesson which encompasses Mike and I: the nerd and free spirit unite. Must I say more of the need for us to get this lesson?
The lesson was mostly about relating to money and Dave did a great job explaining marriage, and kids and money. I learned that my nerd is coming across as controlling only because he wants to take care of me, and he learned that by me feeling like I am controlled doesn't get anything accomplished (but this does not give me the excuse to not deal with anything).
Also the kids section was great, with his kids he did "commissions"- basically his kids had jobs to do just by being a part of the family (clearing their plate, taking out the trash, etc) then they had a list of things that if they did they got $1 each for. At the end of the week, they only got paid if they did it. They didn't do it, no money. Money gets split into three envelopes: giving, savings, spending.
Now we have been doing this to some extent, but instead of commissions, we gave the kids an allowance and they had to save and then spend some. I like Dave's way better. By relating it to a job you are teaching a work ethic and how to manage money, by just giving them money they come to expect it and not relate it to something done to get it. I really want to teach my kids to give, I think it's an important life lesson. While Mike and I maybe not agree with where the giving money goes (he's against all tithing), it is still invaluable to raise a child to look beyond them selves and to give to others.
So we will start our new process this week with the kids.
Another lesson from Dave-when his kids got older, he stopped the comissions and they opened up a checking account where he put money in there for lunch, food, clothing-all the things he would buy for them. They then got to spend their money but had to keep track of it and budget it. When his middle daughter bounced her first check, she had to go to the bank and PERSONALLY apologize for "using the banks money that she didn't have". That was a good one. Plus when his kids turned 16 he matched their savings for a car, so the oldest daughter had $3,000 by the time she was 16, so he matched it and she got a $6,000 car. When his middle had seen how much that plan really worked, she saved $6,000!! She got a pretty nice car at 16 and now Dave is very worried about the youngest child who is working on a Hummer :-)
Also we have $790 toward our emergency fund and by the end of May will have the complete $1000! Yeah, baby step one will be done.
Next week is the art of budgeting.....oh boy let's not all shout yipee at once.
For those of you who do not know about Dave Ramsey, he is really engaging and funny and takes a pratical approach to money and it is biblically based. His main focus is to teach people how to live debt free!!!