Friday, March 6, 2009

Frugal Friday...Week 3

Week 1- Bundled phone, cable, internet to save $50 per month

Week 2- Turned in leased car and bought Saturn Vue (for those wondering, it's a sand color)...will save $200 per month in payment, gets better gas mileage, uses less expensive gasoline.



Week 3

The children aren't going to like this...not one bit. Both of them have a credit card hooked to a card in my name. Both have been known to use the credit card liberally. I get the bill and some months I am STUNNED! Last month the bill was $1000.00 which was DOWN from the month before. I love my children very very much. Because I love them very very much, we are getting rid of all credit cards...almost. They will be sad...very very sad.

Legare and Lorelai have debit cards and check books! My office is less than a block from the bank...All they have to do is call if there is an emergency that they can't cover and I can be at the bank in five minutes.

I am keeping the card that I've had since the beginning of time because it earns points. I put all the routine things that we purchase on the card and pay the balance in full at the end of the month...the money to pay the card is figured into our budget and we enjoy the gift cards that we get with the points. Hank is keeping his also...We consider using our cards "cash." We're accountable and we pay the bills in full every month.

I should have known this was going to be a problem when Legare was 17 years old and at the summer Governor's School. I gave him the credit card then for emergencies. When I got the bill, he had charged $1.67 at Starbucks 21 times.

Legare...I said...did you not ever have a couple of dollar bills in your pocket when you went in Starbucks? Starbucks was NOT on our list of emergencies. Well...he replied...it just felt so GOOD to hand them the Visa card!

Like I said, I should have known we were going to have problems. Not that the child didn't speak the truth. It DOES feel good to hand that card over...it's like getting something for free...until you get the bill. Since Legare and Lorelai never even SEE the bill, I think perhaps we've done them a disservice. They are NOT going to like the new cash only philosophy, but in a few years they'll understand.

ATTENTION Children of Belle--Cash Only, my sweet little darlings...I love you but I mean it!

25 comments:

  1. My parents have had a cash only policy with me and my brother and it actually works pretty well. A certain amount of money is deposited into my bank account every two weeks and if I need something (like a new calculator) they will either buy it for me or give me extra money.

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  2. Like mine, they need jobs to pay for the extras. I have really put the reins on Ashton and he does not like it. He works one day a week at a Ralph Lauren store and blows the money in 2 days! A thousand a month is crazy. I have employees that don't make that much! Tell them THAT!
    Have a frugal but great weekend!

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  3. Good for you this is a life lesson that they need to learn now befor it becomes a problem in the future.
    Good job MOM!

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  4. OMG, I am SO glad my children are all grown, well grown, in fact as they were teens in the 70s. If I had had to contend with them having credit cards when they were teens, I'd be bald today!
    You're doing them a great service by taking away the cards. Kudos to you.

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  5. I know you may not be popular, but they will understand in the end. I had a credit card which my parents paid for while I was in college, but then I got the payments handed over to me when I graduated. If I had known then what I know now, I never would have put a dime on that credit card. Now, I am trying to pay it off (being careful not to put anything on it in the process). It may be hard for them to understand now, but you'll right, they'll thank you in the end!!

    Oh- and the Oaks that you were referring to putting your mother and Ned in- is that the one in Orangeburg? My mom has a friend who has an adult son that has mental disabilities and he was on the list to be put in the same new facility as Ned. I'll have to ask her if he got in....his parents sure do need that to happen!

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  6. Honestly, as one who grew up with a credit card in-hand, I wish I had learned this cash-only concept. I'm determined now, as a new mom, that I will teach cash only and save my Little One from as much of that credit-induced pain as possible. Thanks for including this in your Frugal Friday list. It is important.

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  7. I posted a long comment to this about how your children will thank you one day and it didn't show up...frustrating!
    But, yes, your children will thank you. I wish I had been more careful with a credit card in college. My parents gave me the payments when I graduated and I am still paying off that debt. I wish I knew then what I know now!!

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  8. Woohoo! Big move, but it will pay huge dividends.

    That one was hard! Such a good mom!

    ")

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  9. Ouch! That's probably not gonna be their fave Easter present! haha - You are doing great with your savings plan!!

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  10. Hi. I recently discovered your blog. Your "About Me" section in your Blogger profile made me laugh hard--I'm also a Presbyterian and a Democrat (My gosh, can one be both??):)

    I write a blog devoted to high-performing natural and organic beauty, Eco*Pretty, and have been focusing on wallet-friendly products recently due to the economy.

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  11. What a fabulous thing to do! My children will never get any card in my name....that's for sure! Good for you!

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  12. My Allie would get along well with your children. We are going to visit her next week. She suggested shopping as an activity. NO!!!!!!!!!!!!!! Last time we were there, she announced that she could not wear any of her wardrobe, because now that she is a Florida girl, she needs to dress in that style. Since her sister was there, that meant she wanted clothes, too.

    My all time favorite charge was when my darling daughter bought a dog. What ever happened to adopting from a pound?

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  13. Ahhh, that's a hard one! I remember the day college ended and my dad said, "Congrats honey. Now you're off the payroll". That wasn't the easiest lesson.

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  14. I would LOVE to trade in my BIG SUV for a small SUV... like a Volkswagen Tourega... BUT I have absolutely NO car payments... sooooo in long run the gas buying is less than a car payment... hmmmm

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  15. I love it!!! Cash Only is the way to go. I started handling all of the finances in the Kally house in trade for the Mr doing the dishes and things are FINALLY getting organized and debt is almost non-existent :)

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  16. Did my heart good to see that little white car pulling in the driveway tonight!! We sat and cuddled on the couch for a while - until her friends started texting and she left!! But, like I said, I'm OK with that, I've got her for the whole week!

    Enjoy yours ~

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  17. Dave Ramsey Financial Peace University! Check with Churches in your area, that's where so many of the seminars are held. Your children will be Millionaires by the time they are your age if your teach them the important financial know-how now. You will be one, too!!

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  18. OMG I could have written this post myself. I love, love, love my children too but we had to do the same and take away the credit card and gas card. Hubby and I weren't even spending as much as they were!

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  19. It's a day after your post and I'm wondering if Legare and Lorelai are still speaking to you? No matter what they say or how bad they make you feel, you're doing the right thing. Don't waver!

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  20. You are doing the right thing...cash policy is always the best!

    Good luck with the kids:)

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  21. Sometimes the right things to do aren't the easiest but in the end, they're for the best. Yes, cash only is the way to go!!

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  22. Let me know what the response is!
    My daughter has a card with my account and I just got one for the son who is getting ready for college. I made the card company lower the limit to $1500 when I first got it and periodically have to call them because they keep upping it.
    The daughter has been pretty good with it. She calls me to ask if she can use it. The problem for us is what WE think are necessities are not what the hubby considers as important. I really need to work on that!

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  23. We pay cash for things too. If I can't afford to buy it, I don't get it. I have one card for emergencies. Thanks for a great post. Love & blessings from NC!

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