Hey everyone! Since yesterday’s post was so long, and I have two posts for you today, this one will be brief. I just wanted to talk about something that I have been thinking a lot about lately. GETTING RID OF STUFF! I have come to realize that you actually have more by owning less. Getting rid of stuff is almost as liberating as paying off debt. And of course, just like with our debt, it took us a while to realize that it needed to go.
We have recently decided to put our house on the market. That’s right, if you’re like me when you hear that, you’re thinking COMPLETE debt freedom. We’ll save the “it’s better to own than rent” talk for another day, even though I would love to point out why that’s not true on so many levels.
Last week, we were running around at crunch time trying to get rid of as much of our stuff as possible. Why? Well, for one we know we have too much crap, and secondly, this is the first time we have ever sold a house while living in it. So you could say that it was our decision to sell our house that forced us to do the dirty work a little bit sooner. My wife entered about 180 items in a local consignment sale, we gave Goodwill about 8-10 BIG bags of toys and clothes, and took to the dump, a whole truckload of crap.
We feel the benefits already, and we are excited to take it to the next level. We still have one major room to go (the office), and a few spaces here and there to hit with a fine tooth comb. I wanna get rid of anything that I have not seen or used in the last month. Now my wife is not quite that hardcore, but she is definitely on board. Like with our debt, we are sick and tired of being sick and tired of being…surrounded by stuff.
Ironically, my son has been walking around the house singing the Bare Necessities of Life song from the Jungle Book movie. He did not like the prospect of becoming a minimalists at first. He was rather upset, so we talked. We talked about how much stuff he had, how much stuff he would still have, and that another kid would be able to have some really fun toys because of his kindness. Pretty soon he was carefully digging through his stuff picking out things he could put in the bag, but also paying real close attention to what mom and dad were picking up.
ME: “EVERYTHING GOES! Arggghh!!” (except for his beloved Lightning McQueen toys of course.) 
HIM: “No daddy pleeez, any toy but that one…take this one pleeeeeez!”
ME: “That’s quite enough son, get in the bag!” LOL (totally kidding)
Well come on, Dave Ramsey does say, “get rid of so much stuff the kids think they’re next.” How else would we make him think he’s next? haha!
The next day Isaac was collecting a pile of books. When I asked him what they were for, he said he was giving them away so another little kid could read them. Isn’t that perfect? Maybe he won’t act like that every time, but for a 3 year old to part with any toys at all can be a challenge. Let’s hope my micro-minimalist remembers the song he was singing earlier this week. I’ll have to remind him about the bare necessities of life if he starts to give me any lip.
So that’s all I have for you. Tomorrow don’t miss a brand new Debt Free News From A Debt Free Reader featuring Debt Free Hispanic. For those still in my Manage Your Money challenge, you need to leave your comments to enter by midnight tonight. The challenge has been great and the ones that are participating are making great strides. Won’t you join them?
Don’t forget to vote for yours truly in the Plutus Awards for BEST DEBT BLOG of 2009! See you tomorrow!
Money Management In Public Schools?
I recently read an article that talked about how Cincinnati Public Schools plan to start teaching money management classes, in grades K-12, starting in 2014. Now on the surface, this doesn’t sound like a bad idea, but I think that there is another way of looking at it. Personally, I believe that while teaching kids about money is important, I think that it is more important to know who’s ideas about money management are being taught.
My objection isn’t that money management will be taught, it’s about what that will include. If they are just talking about basics, then maybe it will be fine, but if they teach our children the same “you have to build credit” in order to have stuff idea, I am strongly opposed! We all know that the Government is completely inefficient when it comes to managing money, so do we want our kids to learn those same ideas in the classroom? (Massive debt loads, wasteful spending, …you know the deal!)
Some of you may not know this, but I am not a big fan of the FICO credit system, since that system creates outrageous incentive to borrow and keep borrowing. Something I remember being “indoctrinated” with was the fact that I HAD to build my credit in order to own a house or a car. That is simply a lie, but that is what is spread around as truth. If they are going to expand on this lie in the classroom I think that it could make things even worse for our children’s future. Stick to the basics and I am okay.
What I Consider To Be Basics
- Importance of Savings
- Importance of Budgeting
- Becoming Informed Consumers
- Debt and Risk (The truth)
- Understanding Investments & Compound Interest
- Benefits of Giving
A curriculum I support: Foundations in Personal Finance
Stay away from teaching students how to obtain debt! The curriculum must be based on educating the students on how things work, not what they should or shouldn’t do as far as borrowing or investing! There are too many dangerous opinions out there already. The basics would provide a place to start, and leave room to expand on those ideas as they learn and grow.
Children Become What They Learn At Home, Not At School
Now I am sure there are some exceptions to this, but for the most part I think it is true. I believe it is our job as parents to be an example to our kids. If we are out there borrowing money for everything we own, then the chances are at least greater that our kids will do the same. Learn how to manage your own money properly so that you can teach your own children sound money principles. Remember, you can teach them the right way, but if you are still doing it the wrong way, you are wasting your time!
PLEASE do not rely on a school system to do this for you. This would be a huge mistake, and one that could lead your children to struggle with money the way you have. One thing for sure is that I do not want my kids to even come close to struggling with money the way I have over the years. I wouldn’t wish that on my enemies, or their kids for that matter! Take the time to educate yourself about money, so that you can spread a message of hope to your children and future generations!
A Good Place To Start
Adults
The Total Money Makeover by Dave Ramsey – $10 Sale (or get it from your local library)
Financial Peace University – This 13 Week DVD based course is essential! (Lifetime Membership for your entire household)
Children
Young American Center For Financial Education – Great site with helpful tips and advice for our youth.
Junior’s Clubhouse – Loaded with interactive books, games and resources to make money management fun!
Financial Peace Jr – Money management system for ages 3-12! $10 sale
These links are provided to help you take control of your finances. I do not get paid if you visit them OR buy anything. I hope you find them useful!
- DOWNLOAD THIS BUDGET – I created this budget to give people the tools needed to budget effectively. Budgeting is very important and I have received many emails about how it has helped people with the process. Give it a try and see what you think!
- FOLLOW THESE 7 EASY STEPS TO BUDGETING – Proven methods to help you beat the budgeting blues. So many people, including myself, have started a budget and before the month ends the budget is busted. It kills your motivation and desire to budget, and before you know it you are right back to your old ways. This post will keep that from happening to you.
- LEARN TO SAVE – This is too important to ignore!! I know what keeps you from saving money but do you?
- UNLOCK YOUR TRUE POTENTIAL – In my opinion there is nothing that keeps someone from prosperity as much as not taking responsibility for their own life and problems. You must take action if you want to change your situation. Waiting for someone else to prime the engine will keep you right where you are.
- INVEST FEARLESSLY – Fear is our worst enemy, even worse than debt! When you are scared you make decisions on the fly and panic causes you to rush those decisions. If you have planned well for your future then you are probably enjoying the low prices. If you have not planned then you better get ready for the next BIG SALE!
- TEACH YOUR CHILDREN SOUND FINANCIAL PRINCIPLES – Don’t rely on our misguided school system to teach your kids about money because they WON’T. Step up to the plate and prepare your children for the life they will be pushed into once they become an adult. If they are not aware of what is smart and what is not, they will be enslaved by credit card companies camped out at their college campus.
- DON’T BE AFRAID TO RENT – So many people buy a house before they can truly afford it. We did it too so don’t take this personal, that’s why we had to use “creative financing” to purchase both of our homes. Just because you can afford the payment doesn’t mean you can afford the house. When life happens it doesn’t care if you have savings, can pay your mortgage, or got an unwanted pay cut.
- RECESSION PROOF YOUR LIFE – It’s really pretty simple. If you plan for the future then a recession doesn’t really have much of an impact. The key is using your greatest wealth building tool.
- GIVE YOURSELF A RAISE – Do you barely make it through each month by the skin of your teeth? Wonder where you can get that raise you have been looking for? I bet I can find you that raise!!
- ADJUST YOUR PRIORITIES – You are where you are today because of the decisions you made yesterday. Your priorities can be found by following where your money is spent. Is there something that you feel you deserve? (Like Health Care?) If your priorities were different could you afford that something?
- GIVE YOUR TEENAGERS AN ADVANTAGE – Teenagers and young adults are often pressured into something they don’t want to do simply because society, and probably their parents, tell them that they should. They pick a job based on the salary instead of their strengths. To top it off they go into debt to get that diploma and spend most of their adult life paying off the master for something they don’t even enjoy doing. (Intended for teenagers but helpful for most adults)
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That’s How!
Our Children Really Are The Future
If you have children I can not think of anything as important as teaching them how to manage money at a very early age. Think about it for a second. If you would have learned about money at a young age you could have avoided so many of the financial pitfalls that most of us deal with. I know I would have loved to learn this stuff early on. It would have kept me from paying extensive amounts of “Stupid Tax”, as Dave Ramsey calls it. Stupid Tax is money that we pay because we do something stupid with our money. For example, when you buy a car right off the showroom floor, the stupid tax is the money that you lose because of the car depreciating quickly. One way to avoid Stupid Tax in this situation is to NOT buy a brand new car. Instead by a used car and let the person before you pay the Stupid Tax.
With all of the myths that are spread in our ever growing “spend more than you make” society, it is important to debunk these myths before they become engraved in your child’s mind. As always, Dave Ramsey has developed a very good system to help you do just this. This system is called Financial Peace Jr., and is intended for children ages 3-12.
We Should Set Them Up For Success, Not Failure.
By simply investing a little bit of time preparing our kids for financial responsibility we can save them years of struggle. We all know that living paycheck to paycheck is NO FUN! For just $20 we can change the way our family tree branches out, and ensure that even our children’s children have the tools needed to win and prosper. By now we know that the schools do not even come close to teaching our children about how to manage money, so do not leave it up to them. The effort will be well worth it in the end. We have already purchased Financial Peace Jr. for our son and he is only 2 years old. We have even started to incorporate giving him money to put in his piggy bank when he cleans up his toys. He has even used a little bit of his savings to buy his Grandma a birthday present. He bought her a $3 picture cube, with HIS money. Does he fully understand how all of this works? Of course not, but he will. You should consider buying Financial Peace Jr. today and spreading the love early on.
Financial Peace Jr. includes:
- Commission Worksheet (Dry-Erase Board) – Keep a record of all of the jobs your child has done and how much money he or she earned each week.
- Saving to Buy with Cash (Dry-Erase Board) –Your child can choose one item to buy with cash, and when he or she has saved enough to reach the goal they can purchase the item.
- Envelope System (Save, Spend, Give) – Placed the money earned each week in the envelopes so your child knows exactly where his or her money is.
- Clip and Carry Coin Case – Helps your child keep track of his or her spending money and helps you to monitor your child’s spending.
- Instruction Manual – A guide for effectively using the kit to teach your children.
- Instructional Audio Cassette – Provides additional instructions for you and your child.
If you know who Dave Ramsey is, then you know that he is pretty comprehensive in his approach. For adults he has developed a 13 week video based series to tackle everything from saving, budgeting, and buying to insurance, career choices, and giving. Additionally, he has also created a website for kids that has interactive books, fun games and puzzles for kids to use. Junior’s Clubhouse is an awesome way for you to let your kids learn and have fun at the same time. Learning about how to manage money doesn’t have to be boring, and Dave Ramsey proves it.
Some facts from daveramsey.com:
“According to Opinion Research Corp. 95 percent of pre-teens and 91 percent of teens get money from their parents or relatives to spend as they please but only 20 percent of these teens say they save the money as they receive it. With more than 47 percent of children having a television in their room (The Annenberg Public Policy Center), children are being targeted by advertising more than in the past.”
“The sooner kids start learning how to save and manage their money the better off they will be in life. Financial Peace Jr. does a great job of teaching kids the basic principles of saving money. It is so important that children learn the basics especially in today’s world where emphasis is on spending not saving,” said Matt Woodburn, vice-president of Dave Ramsey’s company. “This kit also allows parents to spend quality time with their children while teaching them about money.”
Love your children by preparing them with great financial management skills. Good luck!
**If anyone has actually used Financial Peace Jr. with their children and would like to share their experience, please do. Got tips and advice? Share your knowledge in the comments section.**
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