This & That: A Whole Lotta Stuff
Posted by Gail | Filed under This & That
People ask the strangest questions on my website. Some people have even written asking if I’m dating. Hmm. I’m getting more and more questions from State-side — not surprising since the show is now airing on CNBC. And while some people have asked how they can see episodes online in the U.S., that’s something you’ll have to take up with the broadcaster.
As regular readers know, I don’t have the time to answer the same questions over and over, so you should look in the Q&A section before you send me your question. If I’ve already answered a similar question, you won’t hear from me. And if I’ve covered your issue in a blog, hey look it up. So anyone who writes me asking how to figure out the jars (there’s a blog) or how to work with a variable income (there’s a blog) won’t hear back.
People are always asking how I come up with the numbers and what goes into making the show. Mike wrote:
In a recent episode a couple had $116,000 in debt. Your repayment plan had them paying $1,888 a month toward their debt and you said they would be debt free in three years. How could this be? Their total payments for the three years would be $67,968. Please explain. There were a few other episodes were the math just didn’t add up either.
Mike, you can’t possibly “check the math” from the small amount of interaction you see in the show. I spend hours analyzing families’ finances and coming up with a plan to get them to debt free With only 21 minutes of air-time, it’s impossible to show it all. You don’t reference the family you saw so I’m not sure which show you were watching, but in all likelihood you haven’t taken into account the amount they’re also paying in “transportation” as a part of the debt repayment. Since car loans are “consumer debt” they’d be counted into the total amount of debt discussed. However, they’re paid out of a different part of the budget, so they’re not included in the “debt repayment” amount… they’re under transportation. Sometimes if a couple has done an equity take out, I count it as “consumer debt” since they consolidated line of credit and credit card debt to their mortgage, but the repayment is part of “mortgage” and therefore housing, so it doesn’t show up under debt repayment. The debt repayment also factors in what they receive from me, and is calculated on a declining balance.
S wrote: My wife and I were wondering how much time do you spend with your clients in the episode; or over what period of time do you have contact with them?
On TDDUP, I spend about 2.5 days processing their paperwork — getting to know them financially. I visit them four times over a four week period, and probably spend another 10-12 hours with them over that period. The new show, Princess, takes more time. It’ll be on the air in the fall of 2010.
Brenda wrote: I have just finished reading your book “A Woman of Independent Means. My question is regarding my financial style. After answering the true and false questions I learned that I am definitely a “depriver”. The description you provided could have been written about me. Finally I can see why I sabotage any efforts to improve my finances. I was hoping that you would provide more advice on overcoming the negative aspects of my financial style later in the book but you didn’t. Is there any way to change my financial style so that I can become more successful financially?
Brenda, each of those profiles comes with a Help Yourself section, and there are four points there that you should begin with. I sense, however, that you want more. Clearly having recognized that you are a Depriver, you want to find ways to start enjoying more of what you have.
There is substantial research that shows that the need to deprive oneself is closely tied to a strong sense of regret and guilt. Deprivation also ties in closely to self-esteem issues: you’re not good enough; you’re not worthy. Those are deeply seated attitudes that need to be dealt with through counseling or therapy.
K wrote: My husband has two grown children with family, and I have a daughter with family. What is a fair price to give to each adult child for Christmas and each grandchild (ages 7-12)? This debate goes on every year. A friend of mine says not to give anything to the adult children, just to their children. I like the idea, but I am not so sure hubby will agree. Any suggestions?
K, there’s no way I’m wading into your debate. This is just the kind of question people end up fighting over. And I can’t tell you how much to spend on your family… only that you shouldn’t spend more money than you have! Why don’t you trying having a talk with your husband to see how he actually feels — as opposed to guessing. Point out that whatever number you come up with, you’re going to set aside 1/12 of that each month so you’re ready next year. And that may mean giving up something else you both enjoy to make the budget balance. Speaking logically, working with the numbers, and coming up with a plan together is more likely to work with bashing him over the head with a “Gail says…” dontcha think?
This next question (and others like it that demonstrate a total lack of understand of the process) surprise me because the decision to go bankrupt is such big one I figure most people think hard about it. Not so much. J wrote:
If I get my credit reports and I am still considered to be in bankruptcy, can I stop it? Am I sill able to make payments on the bills that I owe, during? I owe $1800 to the bankruptcy trustee. I have a good job now and could make payments. I declared bankruptcy in spite of my ex.
Sorry J, once you’re in bankruptcy, you’re in bankruptcy. You may have cut off your own nose to spite your ex. You must complete the process and you will have a lousy credit history for the next seven years. Lesson learned?
S wrote: Hi Gail. I love your show, you have touched the lives of so many, mine included. I have three small children, a huge mortgage (1198 every two weeks), a vehicle payment (340.00 a month) and my husband earns close to 4000 every two weeks. It seems as though he should make more than enough to cover our living costs, but it seems we can’t find our way ahead, and I have found myself taking many, nearly all of your tips and applying them to my life. In trying to balance a budget, pay down our existing 19,000 in debt and save money for our future, I am wondering HOW to calculate how much money I should be spending each week on groceries for my family of five? I have more questions, and more compliments that I could spend the day going on with, but I know you must have many questions – again – thank you for what you have done for sooooo many people. You are so needed in our society of “buy now worry about it later” type mentality that is pushed upon us. My husband asks “where is the money” and I am ashamed to admit that I think Walmart has it ….. 
Kind regards,
S, I get this question all the time, but I can’t answer it. It so depends on what you’re eating. One woman wrote a comment on my blog about trying to keep up with feeding her 15 year old that made me laugh my pants off. “You step on his foot and his mouth opens like a garbage can.” Ha! There’s no rule of thumb. Often I cut people way back on the show to make them aware of how much they have been spending. You need to be doing the meal planning, shopping with a list thing to make sure you’re not over-spending, but as to how much is enough, only you can answer that for your family.
I get a lot of requests from teachers to come and speak to their classes. While I’d love to be able to do this, there’s just no time. Some teachers have written to ask questions like this one from Jennifer:
I am a Grade 4/5 teacher. My students generally come from families who can afford to give them luxuries, including large weekly allowances. When I talk with the students about saving for their future and prioritizing their needs and wants, they have difficulty understanding these concepts. For them, money in = money out, with more begged from mom and dad as needed. I worry about my students who will not necessarily grow up to have the same financial success their parents have experienced. I want them to become financially independent, with realistic money plans. Is there some advice you can give?
Jennifer, I’d suggest you put them through a real life simulation of what life will be like when they go to work. So they have to choose a career, research entry level incomes, create a budget (and a debt repayment plan for their student loans), find a place to live to see what it would cost, do a grocery shop to build a weekly grocery budget… you get my drift. Very often because kids don’t have to deal with the day-to-day expenses they have no idea how much money that eats up. Feel free to use whatever you’d like from my site. (Ditto all you other teachers out there looking for resources.)
BTW: I often get letters asking for permission to use TDDUP in the classroom. I can’t give this permission since I don’t own the show… I’m just the host. You need to get in touch with the folks at Frantic Films in Winnipeg. They’re on the web.
Another question I get quite often is this one from Carol & Mike:
Love your show. A big fan. My husband, not such a big fan until I used your “Build a Budget that Works” spreadsheet. Boy did I open his eyes then. I was able to show him how the money is going out and we don’t have enough coming in. Our question is about the Build a Budget spreadsheet under the heading of Taxes. Where or what Taxes should we be putting here? Should we be putting our taxes from our Income Tax or our Property Taxes or both? Currently, our property taxes are combined into our mortgage payment as one payment.
Carol, that line is for taxes owed or taxed that need to be paid (you’re accumulating them in an account because you know you’ll owe them).
People can get pretty personal too, like this letter from G:
I love your show and watch it very often. As a speech-language pathologist, I have noticed that your production of the “r” sound is a bit inconsistent. You have an excellent “r” in some contexts and I think you could sharpen the other ones fairly easily. The use of “r” occurs frequently in your vocabulary (“dollar” being the most obvious example!) and this mildly affects your overall presentation. I love your show and find your direct and honest approach refreshing. Hope this e-mail is not too direct for you! If you are interested in working on this, we could probably do it over the phone/video or you could find an S-LP in your area.
Hi G, what an ear you have. My soft ‘r’ is a result of my Jamaican accent — the British overtone has me saying it like an “ah”. In fact, when my daughter was little, she would ask her dad for a “diapeR” and ask me for a “diapAH”… ditto the word “paper”. I’m not really interested in changing my accent.
And then there are all the people who want to do what I do, like G:
I cannot express into words, how much I enjoy your shows! I am constantly checking the t.v. guide to see if your show is on and hoping that it is one that I have not seen, as I think I’ve pretty much caught the majority of them, hee, hee. Besides being fascinated with the way you handle different situations, I’m also very much interested in perhaps one day pursuing a career along the lines of personal debt, credit counseling, etc. I have been working at a law firm for the past 20 yrs. and have FINALLY decided, NOW is the time to pursue my dream. I have been researching different universities & colleges, however, being that this is all so new to me, I’m finding it quite overwhelming. Would it be possible for you to shed a little light as to what type of studies (ie. business, finance, psychology, etc.) would be beneficial for this type of field?
G, I’m sorry I can’t be of more help but I just don’t know. I’ve been in the biz for so long, and out of the biz doing TV for so long, that I’m a little out of touch with what is available and required for someone new entering the field. I could post your question on my blog and see if someone else has an answer if you would like.
Okay, so all you financial experts hiding in the wings, it’s time to step up and let G and her alikes know what it would take to help others take control of their money and their lives. Over to you…
BTW, for all the people who want to know if there will be DVDs of TDDUP, that’s not something I have any control over. Write to Frantic Films and ask them.As for follow-up shows, I’ve just shot 10 webisodes that will be on the Slice site shortly, following up with couples from across all 8 seasons. If you like ‘em and want more, tell Slice.
February 10, 2010 at 8:04 am
I can’t believe a speech language pathologist commented on your speech. wow. I think seeing Till debt do us part in the class room would be great financial education for the youth of this country.
regards,
Jason
February 10, 2010 at 8:18 am
It makes me sad to see all the postings on the Have Your Say that explain they are in dire straits and begging you to help them.
I can’t imagine how many more letters you get saying the same thing.
It must be hard to hear there are so many people out there struggling.
February 10, 2010 at 8:45 am
I agree with Jason, the classroom suggestions are awesome!
I would encourage parents to plan a ‘project’ like this with their kids.
I love your accent. We all speak differently. It’s part of what makes us unique. I’m from Nova Scotia, I speak like a Maratimer and I’m proud of it. We Maratimers might like to tease the Newfoundlanders about their accents, but we wouldn’t expect them to change it.
Groceries is one area I am sure I could cut back, but I don’t worry about it. I feel good to be able to have lots of healthy foods in the fridge and a stocked cupboard. I don’t buy a lot of junk food or convenience foods, and we brownbag our lunches. I enjoy cooking and I enjoy eating even more! lol!
If dollars are tight, I plan my meals a bit more.
It’s interesting to see what kind of questions you receive.
February 10, 2010 at 8:45 am
What an array of questions. I see a Gail dating show in the works! The Financially Savvy Bachelorette, LOL It is really heartening to see so many people interested in getting their financial lives in order though.
February 10, 2010 at 8:59 am
I’ll miss TDDUP but am looking forward to the new show. My husband rolls his eyes as I settle in with a glass or two of wine for a Friday evening of TDDUP episodes. But he doesn’t roll his eyes when, thanks to the tips I learned from the show and applied in my life, we head out for our first winter vacation in seven years, totally paid for and money in our pockets for spending while there. Nor does he roll his eyes when we got the big screen tv with sound system that we had been eying for almost a year, again totally paid for. And he won’t be rolling his eyes when we head out for a nice summer vacation to Newfoundland that I’m now saving up for. Two vacations in one year – thanks Gail for all the tips!
February 10, 2010 at 9:39 am
Thank-you! The teenager garbage bin analogy has given me a good laugh to start the day.
Oh the accent thing gets me going…… we all have an accent. You have an accent! (said like an accusation) Mmm so do you actually
I’ll happily adjust the way I say things when conversing with those whose ears have not been exposed to much variety and talk the way I talk otherwise. I get ticked when told I’m saying it wrong though. No I’m going to say ‘durdy wadur’ to make someone happy. As long as we understand each what does it matter anyway. Yeesh – there bigger issues in the world than how we say a word.
February 10, 2010 at 10:14 am
For Jennifer the teacher, I’d recommend contacting her local Junior Achievement association. They have a program called Economics of Success (formerly Economics of Staying in School) that will open these kids’ eyes.
I volunteer to deliver the program regularly and most kids conclude they’re going to live with Mom and Dad until they get married. I’m sure there are a few parents who resent me.
February 10, 2010 at 10:15 am
I just checked out the two follow up web-isodes on slice.ca that are currently available.
I was ticked to see the first couple totally frittered away the advice and plan that Gail gave them, and that they are even worse off now then they were 15 months ago. What a waste.
The second couple has divorced since their appearance five years ago, and I wasn’t surprised. The gal is following Gail’s advice and plan, and is apparently doing quite well. Sad that she had to spend $60K to divorce herself from him.
I can’t fathom the amount of emails Gail gets. It must be truly overwhelming. As for those that are desperate for her help… it’s all right there on the website… and in her new book. You gotta do the work !
February 10, 2010 at 10:24 am
Hi Gail, I just recently attended a 1-day Basic Financial Management course at George Brown College that’s taught by Ellen Roseman (Personal Finance Columnist of Toronto Star). She is a big fan of yours btw and referenced you a lot in her class. She even had your new book to show the class.
In reference to one of the comments you got about possible materials teachers can use in classroom, Ellen gave this website: Its designed for teachers/student use.
http://www.themoneybelt.gc.ca/theCity-laZone/eng/login-eng.aspx
“The City is a learning program developed by the Financial Consumer Agency of Canada (FCAC) and the British Columbia Securities Commission (BCSC). It teaches young people financial skills that they can carry with them throughout their lives.
Use the Student Access if a teacher has asked you to do these lessons or if you just want to learn more about personal finances. Use the Teacher Access if you want to use these materials to teach a class.”
Hope that helps.
Cheers.
h-U-G
February 10, 2010 at 10:31 am
@ Ann – I hope you’re just joking. Living at home with your parents, especially rent-free, is I think the worst thing a young person can do. Both in terms of self-accomplishment, and in preparing for real life. I like bill cosby’s line: “When I was 17, my dad started showing pictures of the door so I wouldn’t be surprised when I saw it again next year.”
February 10, 2010 at 10:38 am
LOL – I can’t even imagine asking you if you’re dating…. the accent thing? Unreal. I love your accent. I’ve watched some episodes 3-4 times (sadly, a comment on a little too much time on my hands).
I just purchased your book “debt-free forever” and I can hear your voice and your accent as I read it. I also sat down and did a 6 month statement.
Eye-opener is an understatement. Although I had watched your shows, and delude myself into thinking I am relatively intelligent, I didn’t have any idea where to start in looking back over six months’ worth of paperwork (or perhaps was in denial) – but the book made it seem so easy – and it was!
The most amazing part of the show is how it is tailored to each individual couple and when they work hard, not only do they receive the cheque, they receive a bonus that is so thoughtful, you know that it all comes from a caring space.
Love you! Love the book (although I am still near the beginning and working on life goals).
February 10, 2010 at 10:57 am
Just giving everyone a heads up, starting in September 2010 I will be offering an online course via Conestoga College Ontario Learn on personal finance, there will also be an in class offering as well. The course is about 12 to 14 weeks long and covers the very basics of personal finance, just like what Gail teaches on her blog and tv show. We will also be offering live online seminars on personal finance via Webex.
There are lots of things happening in the industry to promote financial literacy, which is very nice to see. I believe that Gail’s show has contributed a lot to people getting back to the basics, it has definitely inspired me to help others do the same.
Thanks Gail
February 10, 2010 at 11:36 am
Yay! Nice to see the updates on couples you’ve helped. Looking forward to seeing the new ones as they come up.
February 10, 2010 at 12:38 pm
Using $5 Dinners has made a big difference in our family’s grocery budget: http://www.5dollardinners.com/
Not long ago I was spending $1000 at Costco every month. I’d cut it down to $900 and just seemed stuck there. Then I started using $5 Dinners and trimmed the grocery budget down to $750/mo for a family of four plus one (I say plus one because my SIL lives with us. She does some of the grocery shopping, which is not included here, but it’s pretty much just the odd loaf of bread and container of yogourt).
To be honest, I haven’t worked out whether the dinners ACTUALLY come out to $5 for my area, but I’ve been spending less, so they’ve got to at least be cheaper than a lot of recipes.
February 10, 2010 at 1:11 pm
The teacher could use Monopoly money in her class or something like it. Kids could earn money for finishing homework on time/early, coming in early to help her prep for the day’s lesson, etc. Money has to be deducted for taxes, etc.
February 10, 2010 at 1:21 pm
Ah Gail, I love your accent too. I much prefer it when people are proud of being themselves. I mean, God made you that way and no one else is that way so if you aren’t you, who will be?
To the person who wants to get into Gail’s line of work, most community colleges offer a 2 year business adminitration diploma. The first year is pretty standard but exposes you to everything so you can pick a concentration for your second year, like accounting. You could also go to a bankruptcy trustee place and ask them how they got going.
More “where are they now” episodes, Great! I think it’s almost as important as the makeover so that people can see that financial trouble is the #1 reason couples split up. It is serious business.
February 10, 2010 at 1:28 pm
Re: the Classroom. There are a lot of great resources out there that teach money and budget and finance. I highly recommend something called “The Real Game”. There are three kits so they work at the 5/6 Level, the 7/8 Level and the Gr 9 level.
It teaches about budget, money, taxes, deductions. etc
I use it every year and the kids LOVE it.
February 10, 2010 at 1:39 pm
How presumptuous of the Speech Language Pathologist to assume that you view your accent as “imperfect” as she apparently does!
Ignore her and keep up the awesomeness!
February 10, 2010 at 2:45 pm
You say tomayto, I say tomatto…..if we were all the same what a boring old world we would live in (misspelling deliberate).
Was gobsmacked with how many and the type of questions you get Gail, especially the personal ones. Your patience is greatly appreciated by all of us for sure. Don’t let them grind you down.
Can anyone here give me the link to click on to go right to the two update shows on Slice? I looked but couldn’t find them. Thanks!
February 10, 2010 at 3:03 pm
http://tinyurl.com/3h2pdc
Catherine; this should take you right to the videos for TDDUP on slice.ca
February 10, 2010 at 3:05 pm
I love these posts – what a great, easy read.
February 10, 2010 at 4:30 pm
Iryssa – thanks for the link. I’m always looking for frugal ways to cut down at home.
February 10, 2010 at 4:57 pm
For the person who wants to go back to school, have a look at AUCC’s Programs of study database at:
http://oraweb.aucc.ca/showdcu.html
Under Field of study select:
Business — Financial planning. There were about a dozen programs in English and French listed. This is assuming you want to go to a Canadian institution…
February 10, 2010 at 5:17 pm
I’m looking forward to the new show! I love these This & That posts!
February 10, 2010 at 6:30 pm
I struggled with the grocery bit too, how much to spend. I tried an experiment for one month. I bought gift cards for one grocery store only, it happened to be No Frills. Then for that one month, I only bought groceries at that store, and only used my cards. I almost made it too, but I was short $10. I am trying it again this month. It keeps my side shopping in check, and forces me to at least try and keep to the minimum. I should have a good idea how much things cost at the end of this month. (1 adult, two teenagers, $300 didn’t cut it, so I’m trying $350. It may end up $100 a week once we’ve cleaned out the freezer and pantry). No more throwing out food!
The best thing I did? Left the two teenagers at home while I shop. I shop to cook now, rather than to fill the pantry with the junk food they want.
We’ve also renewed the library card, and the kids are starting to walk instead of taking the bus trying to save a bit of extra cash.
February 10, 2010 at 7:01 pm
My father worked for the government and every summer he had university students working with him in the field so that they could gather experience in their field. Depending on where he was working we were often able to join him. Every year there was a problem in the beginning. You see my father had a very thick Hungarian accent that transcended all of the 5 other languages he spoke. We didn’t even hear his accent. My sister and I used to laugh hysterically at the expression on the student’s faces the first time they heard Dad speak. In fact we spent the first weeks acting as translators. But their ears tuned in very quickly. By the end of the summer the students were not only fluent in very colourful swearing in six languages but they all copied Dad’s accent – not mocking just copying and in fact talking to Dad in his own accent. The sincerest form of flattery.
I must sign off now to go and sort through my tax papAHs.
February 10, 2010 at 7:47 pm
How funny (rude) that someone would suggest changing the way you speak. Funny though because my hubby asked me once about it and my reply was “she’s originally from Jamaica” end of story, no biggie. (He noticed because we were in speech therapy for our 4 year old.)
I’ve always understood your message and some of the advice is still sinking in. Thanks Gail!
February 10, 2010 at 8:03 pm
Jamaican, huh? I would have guessed Scottish.
Anyway, I love your accent. I still can’t get over that show with Ivy and Carson – they persisted in their denial of their financial situation and all they could do was complain because you touched them. I predict continuing debt for those two.
Can’t wait to see the Princesses show – I bet that will be a hoot! Living in Southern California I know a lot of princesses personally.
February 10, 2010 at 8:30 pm
Sandy-Toronto, that is basically what we have been doing for 2 adults and a toddler. We have realized that $100 a week might be more realistic because of razors and tp etc… Luckily we are not huge meat eaters so I think that is why we can stretch the money out.
February 10, 2010 at 8:46 pm
Joanne~thank you! Watched the two updates. The first couple I don’t think gets it even yet. The second participant looks fabulous five years later and pounds lighter (I mean losing her hubby). She’ll follow through and be fine.
)
Forgot to say Gail that no matter how you speak….we are listening and hang on every word
February 10, 2010 at 11:13 pm
Gail, while you’re talking about “this and that”, I thought I would mention that your interactive budget doesn’t seem to have a place for a non-custodial parent to put in their child support payment. We have slotted the child support into our “fixed expenses” since it is a financial obligation that is non-negotiable. But in our family budget (and I’m sure for a lot of families) it does mean that the pie percentages need to be adjusted slightly to account for a 6th piece.
February 11, 2010 at 12:34 am
I have to say that the speech pathologist was rude. Does it matter how you say “r”? Isn’t this a blog about saving money and getting rid of consumer debt?? Enough about that. I really like to know what has happened to the couples afterwards. I watched both “after the program” shows and am not surprised about either couple. The first never got it, don’t get it now and won’t get it in the future. It’s obvious that she is a bully and he allows her to be the boss of money. Money is a two way conversation in a marriage. It’s the only way it works. Thanks Gail again for your help to provide people with a solution to getting out of debt. It’s work and hard work. You have to want to get somewhere to know how you need to get there.
February 11, 2010 at 1:53 am
So, … are you dating (g)?
February 11, 2010 at 2:16 am
I have been watching TDDUP since it was on American Life in the US. It has been so great since it started airing again. Even though I am in great financial place it has helped me stave off the “new(or new to me) car bug”. I sat down and did the math to see how much I needed to save to make my next car affordable. My goal is to pay for half of this car cash and the follow one (10 years later) I would like to pay cash. When I put all of my numbers into the budget worksheet a couple of years ago I was pleasantly suprised that everything was within range, so now my goal is to keep it there.
February 11, 2010 at 2:54 am
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February 11, 2010 at 10:08 am
Re: the updates – does a divorce really cost $60,000? NOT that I’m planning anything or something, but I was just shocked at that number.
February 11, 2010 at 12:08 pm
To Geoff – we did the family counselling through the EAP program, and our divorce cost $525 each. Worth a try.
February 11, 2010 at 12:47 pm
@ Sandy – thanks. I’m lucky to enjoy a happy marriage but was just shocked at the sticker price. Personally I’d rather give every dollar I have to my wife and son before the lawyer’s get paid, but I think divorce causes some very irrational behavior in some people.
February 11, 2010 at 1:00 pm
@Geoff: I really like your statement about divorce – that you would rather give every penny to your wife and son before you gave it to a lawyer. I just wish that many others would feel the same. We have 3 friends who went through divorce – very bitter and very, very vicious and none were because of infidelity for which I must say I could propbably hop onto the bitter and vicious bandwagon – and in all cases I could not believe the lawyers bills! No one won. In one case my friend’s inheritance of long held family property actually went to her husband. Still haven’t grasped that one.
Often there is a lot of publicity when celebrities divorce and they just destroy each other in the media. Paul MacCartney behaved horribly towards the mother of his child. Really tacky. Neil Diamond was divorced by his wife and she received one of the largest settlements ever. When questioned about this Neil said “she deserves every penny and more”. A gentleman.
February 12, 2010 at 11:06 am
For G:
I found a website that details what you need to become a credit counsellor in Canada, including education, experience, and on-the-job training. Here’s the link:
http://familyservicethamesvalley.com/credit_counselling/becoming.html
I hope you find this useful.
February 12, 2010 at 10:24 pm
I can’t believe someone suggested you change your accent! Yeesh.
I do have one question related to the very first q&a poised above. I had thought that “transportation” costs in the jars were only to include gas, parking, toll fees and tickets. I had thought that monthly car payments went to debt repayment and savings for car repairs would fall under a planned spending category. I know we had discussed this at an earlier entry… can you please clarify? Thanks!
February 13, 2010 at 7:59 am
SQ: You’re right about what goes in the jars except you also have to include maintenance. Monthly car payments fall under “fixed expenses” so they don’t go in the jars at all… the jars just cover variable expenses. While maintenance is a planned spending category, it still can be managed in the jars (or you can do it in your bank account). I save “planned spending” for things that you’re saving up to do like take a vacation, buy a new couch, and the like. Hope that helps.
February 16, 2010 at 3:03 am
@ Geoff and @ Ann:
Just wanted to comment on the posts regarding children living with their parents until they are married/older.
This is quite common in European countries as it can be very expensive to move out on ones own and the idea of taking on a massive debt load hasn’t quite permeated the culture the way it has in North America. I don’t think it is fair to say that a person is not accomplished if they haven’t moved out of their parents homes. Especially when there are many people who have moved out of their parents homes and have nothing to show for it but debt.
While I don’t believe that young people should leach off of their parents (they should pay a portion of the bills/rent once they have graduated), I also think that remaining at home can help a young person get a good start on life in the real world.
Financial education should start when a child is young so that they have time to learn, make mistakes and grow. Kicking them out at 17 isn’t necessarily the best option financially or emotionally either. Consider the costs for a student living at home during college paying rent/bills vs. that of a student halfway across the country with rent/bills as well as expensive transport to go home for the holidays. Then consider also the emotional toll it can have on the parents/child to be so far away from one another. This can be exacerbated during holiday seasons (Thanksgiving, Christmas, Easter etc) if funds are not available for a ticket home.
Staying with your parents is a really good option for a lot of people.