Ideas please - how to help someone learn how to budget and handle money.Practical advice, non-insulting or out of reach?

Ideas please - how to help someone learn how to budget and handle money. Practical advice, non-insulting or out of reach People in my life seem to have so much trouble figuring out how to budget their money. I have a hard time understanding it and therefore probably can't explain how very well.My disciplines don't translate well to those that just don't pay the kind of attention that I do.

It's frustrating to watch those you care for struggle financially. I know with the kids or young adults, it may be a matter of experience yet, but what about family and friend over 50 that just don't get it.Is it a matter of income level or discipline? Asked by watermelon 41 months ago Similar questions: Ideas help learn budget handle money Practical advice non insulting reach Business > Financial Planning.

Similar questions: Ideas help learn budget handle money Practical advice non insulting reach.

Most people have trouble with budgets, because as soon as they get off track, they give up. Using a budget can be very valuable in keeping a house in order. But, budgets are like New Year’s resolutions.As soon as you get off course, you get frustrated and give up.

Understanding money has nothing to do with income levels or discipline. It has to do with so many messages being jammed into our brains, we just don’t know if we are coming or going. You are having a hard time understanding it all because every day on television and radio, in magazines, newspapers, and books, people are talking and writing about what to do with your money.

Everyone has his or her own philosophy, sometimes correct and sometimes incorrect. These ideas collide with the other ideas out there to form what I call financial noise. You are not alone.

Millions of people are having the same problem. Just like at a concert. If you stand right in front say the speaker on the left, you can’t hear what is coming out of the speaker on the right.

It is so loud, you may not even be able to make out anything at all, but a bunch of noise. You really get no enjoyment out of the music so you either move someplace else in the auditorium, or leave. Usually, one idea will rise above the others.

It may either be correct or incorrect, but because we keep hearing in over and over again, we start to accept it as fact, although it might be wrong. As were hear this information over and over again, it starts to create a paradigm where we turn a statement (right or wrong) into fact that becomes the basis of our thinking. Once a paradigm is set, it is very hard to change it.

That is why you are having a hard time transferring your understanding of money to someone else. They have a certain mind set when it comes to money (different than yours) and that is why they don’t listen when you talk. For example, "The magic of compound interest.

" Good or bad? Everything your read, hear, and see says it’s good. Which is better, a 15 year or a 30 year mortgage?

Almost everyone says a 15 year mortgage because of the interest saved. The correct answer to both of the above questions is "it depends on the situation." And, how do you know the answer is not just more noise?

By verification. Don’t take someone’s word for it.Do the math and compare the results. Our money is also being attacked everyday by inflation,taxes, fees, planned obsolescence and technological change.

Our money is attacked by taxes and fees. We watch our paychecks go down and federal and state taxes go up, we pay tax on out investments and savings, and some of our investments have fees attached to them which also change from time to time. A good example of inflation.

In 1964, a VW beetle cost $995. Today it cost $21,000. Corporations figure planned obsolescence into everything they make.

In order for corporations to survive, they need a way to make you come back to buy again.So, things wear out. Technological change causes us to spend money on something we never though we would own 20 years ago. Cell phone, laptop computers, flat screen TV’s, Ipods, microwave ovens, DVD players, etc.People start to get frustrated because they can’t save or invest enough.

Money is leaking out everywhere because of the increasing cost of food, utilities, gasoline, property tax, health care, etc. Each time we are able to put a little aside, it is needed to cover some increase down the road. All of this leads to a financial struggle, and since everywhere you turn, there is a different recommendation causing more confusion. So, the big question is, how do you get them to pay attention?

There really isn’t an exact answer to this. You have to try a few different things to see if you can get their attention. You have to change their thought process without becoming confrontational.

1. People receive messages three ways. Visual, hearing and feeling.

You can tell how a person receives a message by their conversation. I saw in the paper yesterday(visual). I heard someone say (hearing), I feel the best choice is (feeling).

So a visual person has to see the results or read it.An auditory person has to hear what you are saying, and a feeling person may have to hold the paper in his hand and follow along as you talk to him. So, if you are trying to explain finance to someone, make sure you are communicating in the correct way they are receiving messages. Of course they have to be willing to sit down with you in the first place.2.

Sometimes I try to relate to something they do or are interested in. For example, did you know if you went out to eat lunch at work every day and spent an average of $80.00 a month and did that from the time you were 30 till you were 65, you would have spent $33,600. If you could have put the $960 (amount spent each year) in a 5% savings account at the beginning of the year you would have had $91,042 by age 65.

Then just let the $91,042 sit to age 85 at 5% you would have had $241,561. I have had some clients respond by saying, "I did not know I was losing that much money." "How can I fix it. " This does not always work, but for some it is an attention getter.

3. If they are willing, try to get them to go to one of those free financial dinner seminars. Some people want a third party opinion.

Most of those seminars do not try to sell you anything.It usually says it on the invitation. 4. There are some good books on the market that might help."Why Smart People Make Big Money Mistakes," available from Amazon.com http://www.amazon.com/Smart-People-Money-Mistakes-Correct/dp/0684859386/ref=sr_1_1?ie=UTF8&s=books&qid=1220462987&sr=1-1 "Mentored By a Millionaire," http://www.amazon.com/Mentored-Millionaire-Master-Strategies-Achievers/dp/0471467634/ref=sr_1_2?ie=UTF8&s=books&qid=1220463173&sr=1-2 "The Millionaire Mind," http://www.amazon.com/Millionaire-Mind-Thomas-J-Stanley/dp/0740718584/ref=sr_1_1?ie=UTF8&s=books&qid=1220463361&sr=1-1 Don’t let the last two books throw you off.

It is about people who had no time, no talent, and no money, but they became wealthy in spite of themselves. Even reading some of the above books yourself might give you some ideas on how to communicate with the people you are talking about.5. Buy a copy of Quicken.

This software package makes it very easy to set up a budget. You don’t have to set up the budget all at once. It allows you to add categories as you spend money, so by the end of one or two months, you have most of your income and spending categories entered into the software.

I do this myself. I use a debt card instead of cash. Then each time I buy something, no matter how small, it is debited from my checking account and shows up when I download information from my bank each day.

This way I can set up categories for lunches, groceries, office supply, snacks, URL10 makes the budget setting process much easier, because you don't have to try to remember each day what you spent money on. The program does that for you. You question is a good one, and the answer is not easy.

Some people just don't want to be bothered. Their philosophy is live for today. It is really difficult to get them to change their thought process..

Spending habits You have to examine a persons spending habits. What do they spend their funds on? How often do they spend it on those items.

Then you look at their cash flow coming IN. How often and how much. I know of NO OTHER way to analyze such data.

Each person's or family's spending patterns are UNIQUE. There are of course similiar requirements. There is also something you must realize: the requirements are DYNAMIC.

How dymanic is a function of the chaos in the family's or person's life over time. For example the child rearing years of a young family. I can think of nothing that will wreak havoc with a family budget than growing children and unplaned sickness for example.

OR a Young couple whose spending patterns are still in the "swinging couple mode" when they should be in the "raising a child mode". One of the biggest problems the X generation and the baby boomer generation has IMO is that the parents of these children decided to give give give large amounts of material wealth to them as children. Many were NEVER taught to budget.

Many of the generation X can barely count change. If you do not even have the skills to keep a check book straight, you will never be able to get them to budget. You must teach them the basics without being insulting.

You are going to have to fill in the gaps of information they failed to "get" as teens that they now MUST have to survive as adults. If it is done right with patience and if it is made to seem to be fun or a game, they will catch on quickly. If they really care about getting themselves out the financial mess they are in and STAYING out, then building their self esteem and knowledge base by equiping them the analytical tools to HELP them STAY out of the mess will be your reward.

Sources: My experience as a CPA for 22 years Gunner70's Recommendations The Financial Peace Planner: A Step-by-Step Guide to Restoring Your Family's Financial Health Amazon List Price: $16.00 Used from: $7.44 Average Customer Rating: 5.0 out of 5 (based on 25 reviews) Quick and Easy Budget Book: A Practical Workbook for Balancing Your Household Budget Amazon List Price: $15.98 Used from: $11.95 Average Customer Rating: 4.0 out of 5 (based on 4 reviews) Your Kids Can Master Their Money: Fun Ways to Help Them Learn How (Focus on the Family Books) Amazon List Price: $13.99 Used from: $2.10 Average Customer Rating: 5.0 out of 5 (based on 1 reviews) Frugal Families: Making the Most of Your Hard-Earned Money Amazon List Price: $11.99 Used from: $5.99 Average Customer Rating: 3.0 out of 5 (based on 19 reviews) Financial Planning Workbook: A Family budgeting Guide (Christian Financial Concepts Series) Amazon List Price: $12.99 Used from: $0.01 Average Customer Rating: 5.0 out of 5 (based on 2 reviews) .

My ex is 46 and a financial DISASTER. That's one of the reasons I dumped him. I was taught to be financially responsible from an early age.

Here are some tips: Cut up the credit cards. They are not free money. Only use checks for bills.

Don't use the debit card. Again, it's not free money. Put some cash in the wallet each pay period, and only use that..

" "What are the best books for young adults to help them learn how to handle their money. " "You have financial planners to help with investments, so why have unqualified neighbors handle your biggest investment," "Shady Advice on the Internet.... What are some ideas that can help protect us from dangerous information?" "Please help with advice on investing money in 401K. " "I need advice, words of wisdom, ideas, prayers, thoughts and love right now... Please help...A loved one is on her death" "Financial Planning for a Sizable Windfall.

What are the best books for young adults to help them learn how to handle their money.

You have financial planners to help with investments, so why have unqualified neighbors handle your biggest investment.

Please help with advice on investing money in 401K.

I need advice, words of wisdom, ideas, prayers, thoughts and love right now... Please help...A loved one is on her death.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.