Tweet
When I was in high school they did teach us about finances, if we opted to take that course. We had a choice between World Economics, Business Economics, or Home Economics (not the sewing and cooking version). I chose Home Economics because I had no interest in the others at the time and figured easy A (I was an honors student, I wanted one easy class).
Turns out I made the best choice, because in that class I learned how to write checks, balance a check book, create a budget with my assigned classmate "husband" that we had to follow for 3 months. Every class we had to pull a paper out of a jar that had an ordinary expense, an unexpected expense, or a wild card. The wild card could be anything from a debilitating illness or accident to an inheritance or winning the lottery. We were assigned an income level, a debt level, and whether or not we had kids. We were given the option of using credit cards or not. For those that did they had an additional wild card drawing. Sometimes they were blank, sometimes they were an interest raise, sometimes they were a lower card offer to transfer debt. Oh, and we were expected to save 10% of our income.
We had field trips to the grocery store and had to stay within our grocery budget while "pretend" shopping for a month's of expenses. Most of the kids did without some things rather than by no name or generic foods. We always had enough food and made nearly everything from scratch. Other classmates often had little to no food for their last week of the budgeted month. Scary. Swore that would never be me.
My "husband" and I were one of the few pairs that never exceeded our income and saved the 10%, despite having a "car accident." We (everyone in the class) had been given the choice on whether or not to pay for our insurnance (it wasn't mandatory on autos back then). We chose to keep it. Then 70 percent of the class got in a twelve car pile-up for their wild card.
This class taught me so much. My friends learned how to pick stocks or how the economies of other nations worked. Most of them were 25 before they could balance their own checkbooks or use a budget. They never learned the skills. So I'm a huge advocate on learning this stuff. The other stuff (like stocks) I've picked up on my own, but I don't think I'd ever have learned the other stuff without the right class and a very clever teacher. My "husband" from that class never got into revolving debt at all and has amassed a sizeable estate that is now mortgage free. He is retired (at 37).
As for why I live paycheck to paycheck, it's the medical debt. Unforeseen life experience and expense! And I guess I can say now that I'm half a paycheck ahead finally as I have that much in the Emergency Fund so far. And I am doing almost all that I can to get away from the paycheck to paycheck lifestyle.
Turns out I made the best choice, because in that class I learned how to write checks, balance a check book, create a budget with my assigned classmate "husband" that we had to follow for 3 months. Every class we had to pull a paper out of a jar that had an ordinary expense, an unexpected expense, or a wild card. The wild card could be anything from a debilitating illness or accident to an inheritance or winning the lottery. We were assigned an income level, a debt level, and whether or not we had kids. We were given the option of using credit cards or not. For those that did they had an additional wild card drawing. Sometimes they were blank, sometimes they were an interest raise, sometimes they were a lower card offer to transfer debt. Oh, and we were expected to save 10% of our income.
We had field trips to the grocery store and had to stay within our grocery budget while "pretend" shopping for a month's of expenses. Most of the kids did without some things rather than by no name or generic foods. We always had enough food and made nearly everything from scratch. Other classmates often had little to no food for their last week of the budgeted month. Scary. Swore that would never be me.
My "husband" and I were one of the few pairs that never exceeded our income and saved the 10%, despite having a "car accident." We (everyone in the class) had been given the choice on whether or not to pay for our insurnance (it wasn't mandatory on autos back then). We chose to keep it. Then 70 percent of the class got in a twelve car pile-up for their wild card.
This class taught me so much. My friends learned how to pick stocks or how the economies of other nations worked. Most of them were 25 before they could balance their own checkbooks or use a budget. They never learned the skills. So I'm a huge advocate on learning this stuff. The other stuff (like stocks) I've picked up on my own, but I don't think I'd ever have learned the other stuff without the right class and a very clever teacher. My "husband" from that class never got into revolving debt at all and has amassed a sizeable estate that is now mortgage free. He is retired (at 37).
As for why I live paycheck to paycheck, it's the medical debt. Unforeseen life experience and expense! And I guess I can say now that I'm half a paycheck ahead finally as I have that much in the Emergency Fund so far. And I am doing almost all that I can to get away from the paycheck to paycheck lifestyle.
Comment