2 Families

[stretchabuck]

I am a second-mother/friend to a Mom of 2 who is in her 30's. I will be 55 in October, married and raising a high school Senior and 3 year old grandbaby.

Over coffee yesterday we were comparing notes (?) on families and finances when she admitted she doesn't know how to balance a checkbook and she really is having a hard time with finances. I am trying to get a handle on mine and am starting to make out a budget to get MY financial picture and she asked me to help her out......any and all advice is welcomed.....want to simplify this as much as possible .....TIA

[terry1156]

If you need a very basic budget to start, you can go back to how almost all families did it in the old days. Take out a bunch of envelopes, write the name of the expenses the money is supposed to be used for on the outside (groceries, gas, electricity, water, etc) and divide the paycheck into the different envelopes. Then you know exactly how much you have for that area of you budget until the next pay check.

[34saving]

You'll probably find that helping her figure out a budget will probably be easier than figuring out your own. The catch?? Will she stick to it? Also being there for questions will be huge. I guess if she's ever on the internet you might want to refer her here too.

[pennywise]

Budgeting analyzes the income and output of family money. The first step - income. I do it on a payday basis. Next, must sit down for all output. I do not do a budget like recommended adding clothes, gifts, etc. I put down the knowns: gas, elec, food, car ins., house taxes, water, trash pick up. Must think of all of them because some will slip your mind. Look through last years checks and credit statements. I used to do it on paper but use the computer now. Calculators make mistakes somehow and computers don't. After you see the necessities you can add the extras if you want. Best to do a year ahead so you can see the weaknesses and strenghts to plan for them. Like, car ins is biannual, taxes biannual, etc. Those get forgotten. Have her over daily to read this with you and brain storm. Always remember NEEDS VS. WANTS. She must learn to balance the check book. There are local agencies if you qualify that can teach this, check with the local social services if you want. But, we will help. Ask the questions.

[akaivyleaf]

maybe this isn't the best place to ask, but I truly don't understand how a person does NOT know how to balance a checkbook.

Am I missing something? You start with a number, and subtract from it according to what you spend, or add to it, according to what you deposit in it.

I'm constantly amazed at how many people have problems managing a checkbook register, when if you ask them how much they would have if they started out with a 100.00 bill, spent 10.00 and a friend gave them 20.00. Same thing...

[pennywise]

Balancing a check book can be difficult because of credits and debits and they are viewed by some as backwards. Also, if you forget to log a check the amount "doubles" on the statement and can be hard to find. Also, addition and subtraction errors can occur. I had difficulty and have a bachelors degree until I put it on the computer.

[singinjeannie]

I stink at balancing a check book too. But that's another thing altogether.

Get Dave Ramsey's book, "The Total Money Makeover" or "Financial Peace." You can get them on half.com or ebay, or Amazon or at the library!!!

He explains how to handle finances better than anyone I've ever heard, and I've read quite a few books on finances! No one makes as much sense as Dave does.

He also has a website http://www.daveramsey.com

Good luck!
-Jean

[PrincessPerky]

I used to be terrible at it! subtracting and ect. was a simple formula, the fact that the number always came up wrong was the problem! Every month DH would have to go find my math error or help me find the missing bill, or oddly enough an extra one I put in, or forgot to check off.

I now can do it alone, but I have been with him for 7 years .

Best thing he did, was sit there and let me talk outloud till I got stuck, then he would go find the problem. Instead of just doing it for me, and when he had to find the problem he would show it to me and I would redo the math, so I learned.

[stretchabuck]

The question was asked how does one NOT know how to balance a checkbook. In days gone by....and even now.....the hubby wears the financial pants and the wife has little or no idea how much he makes, etc. I am going to get her under my wing....if her hubby ever died she would be in quite a fix....how can you know where the insurance policies, bank accts. etc. are kept if you are never a part of the planning.

I suggested to my hubby that we each have access to 2 checking accounts....1 personal and 1 house account. Most of our earnings go into the house account but, I have my money for clothing, etc. Well, my friend works part-time and never sees her money....it goes into the checking acct...which he has access to. She says he takes out money for cigarettes, beer, etc....I'm wondering how much...I get the idea what she wants doesn't matter as much....I'm going to watch my step....I believe in myself and my ability to get what I want but, I want to be sure what I'm walking into....ignorance is one thing.....control is another.

I live in MA and we have a free Womens' Money Conference coming up in September. Registration should be open so, I am going to try to get her there. Its' down the cape so it would be nice to stay the night before heading back....lets see what kind of reaction I get