Budgeting without math
Results 1 to 11 of 11
  1. #1
    Registered User monkeywrangler71's Avatar
    Join Date
    Oct 2006
    Location
    Nova Scotia
    Posts
    3,898
    Post Thanks / WTG / Hug
    Blog Entries
    9
    Rep Power
    33

    Default Budgeting without math

    I want to help my child set up a system to manage her money, but she has a pathological fear of numbers. If spreadsheets or any other system involving tracking, adding, subtracting, or any other recording of numbers is mentioned, I know she will completely shut off.

    So, I thought this envelope thing would work for her. Put the amount on the outside, and just put money into it until you get that amount - no adding, just counting. But, now I'm confused about how envelopes work in categories that get spent gradually.

    I would like her to be a month ahead - ie. fill the envelopes for August expenses in July. For three categories (rent, bus pass, cell phone) she would pay the whole amount at the beginning of the month, then start filling them up again. How does this work for groceries and spending money? She would be filling them and spending them at the same time - so how do you keep this month's money separate from next month's money?

  2. #2
    Registered User Libby's Avatar
    Join Date
    Apr 2006
    Location
    Canada
    Posts
    8,930
    Post Thanks / WTG / Hug
    Rep Power
    59

    Default

    I'd suggest listing a goal amount & deadline of when it needs to be saved by at the top of the envelope and hi-light it so it stands out. Then its a simple add and subtract game. All she has to do is keep a running total of what's in there until she reaches the goal amount by the deadline.

    In order to keep her a month a head - she needs to have a minimum of one month's goal in the envelope at all times this way she will be able to cover the next month's expenses. If its doable, aim for 2 months ahead.

    How I used to use the envelope system was very simple. I'd list the goal amount along with deadline. Then I'd count the # of paycheques (deposits) between current date and by the time the deadline hits. Divide the goal amount by # of paycheques = the amount each payment to your envelope should be for a minimum. If possible, I'd add more then the minimum to help me reach my goal faster.

    I hope that made sense.

  3. #3
    Registered User monkeywrangler71's Avatar
    Join Date
    Oct 2006
    Location
    Nova Scotia
    Posts
    3,898
    Post Thanks / WTG / Hug
    Blog Entries
    9
    Rep Power
    33

    Default

    It's July 1st, you have $200 in your grocery envelope for July. On July 2nd you get paid and need to start saving for August groceries. How do you keep this separate from July's groceries?

    Does each month go in a separate envelope?

  4. Remove Advertisements
    FrugalVillage.com
    Advertisements
     

  5. #4
    Registered User
    Join Date
    Nov 2009
    Posts
    13,930
    Post Thanks / WTG / Hug
    Blog Entries
    25
    Rep Power
    88

    Default

    Seems too complicated. What does she like. Bananas,candy,colors. Give her that many like 100. and have her allot that many to ea. section. Budgeting is about alloting amounts here and there.
    When we start we start w/ a NOW budget. Then as you get more skilled you move to an ANTICIPATORY budget.
    Somewhere in there teach her the 1/3 method. 1/3 bills/expenses, 1/3 tithe/charity, 1/3 savings.
    Its very imp. to break everything down in bits.
    I assumed a small child or younger than teen? Dave Ramsey teaches budgeting for young kids. They have $10. specials on books occasionally.

  6. #5
    Registered User monkeywrangler71's Avatar
    Join Date
    Oct 2006
    Location
    Nova Scotia
    Posts
    3,898
    Post Thanks / WTG / Hug
    Blog Entries
    9
    Rep Power
    33

    Default

    No, not a child. A working adult, with real money, real expenses, and a learning disability.

  7. #6
    Registered User Libby's Avatar
    Join Date
    Apr 2006
    Location
    Canada
    Posts
    8,930
    Post Thanks / WTG / Hug
    Rep Power
    59

    Default

    I'd have two sets of envelopes. One for current and one for the next month. Use a way to differentiate if possible - diff coloured envelopes, stickers, etc. Or use jars a la Gail V.O. method this way they're re-useable.

  8. #7
    Registered User
    Join Date
    Dec 2005
    Location
    No. California
    Posts
    354
    Post Thanks / WTG / Hug
    Rep Power
    18

    Default

    I used to allot $100 a week for groceries and miscellaneous expenses. I funded as many envelopes as I could, and labeled them 'week 1', week 2, etc for the 4 weeks in a month. For the second month, I labeled them 'Next month week 1', etc. Or she could put the month on them and reuse crossing off the old month. I only had 2 sets, so it was pretty easy to keep them separated.

  9. #8
    Registered User
    Join Date
    Nov 2009
    Posts
    13,930
    Post Thanks / WTG / Hug
    Blog Entries
    25
    Rep Power
    88

    Default

    oh,envelopes sound better then.

  10. #9
    Registered User zakity's Avatar
    Join Date
    Feb 2005
    Location
    near Portland, Oregon
    Age
    50
    Posts
    3,035
    Post Thanks / WTG / Hug
    Rep Power
    34

    Default

    You can buy colored plastic envelopes at the dollar store sometimes. That might be her best bet. One color for this month, one color for the next month, one color for intermittent bills (car repairs, etc), one color for yearly bills (car insurance, etc), and maybe another color for bills that are like every other month or every few months.

  11. #10
    Registered User
    Join Date
    Oct 2011
    Posts
    217
    Post Thanks / WTG / Hug
    Rep Power
    10

    Default

    If it was me this is what I would use two accordion folders (for legal sized envelops) designated in her favorite colors for current month and future month. each envelop labeled with rent, food, phone, bus pass, spending money and with a Money Equivalent photo (using the images to represent what should be in each envelop if she's adverse to having to do math) as for spending gradually does she have a set amount she spends? $100 (or what ever she decides she can spend) a month and when it's gone no more spending on things like dining out/clothes/misc items and when she uses the money in the present month the envelop as it is emptied is turned around so it's gone until she needs to fill it up again.
    and as a fail safe I'd set up a small photo album (the kind you get for $2 with the same information just in case something happens to the envelop system)
    on left side of page RENT = $300 with a picture of 3 $100 bills or 15 $20 bills showing on the right page.

    Plastic Folders | Accordion File small

  12. #11
    Moderator Ceashels's Avatar
    Join Date
    Apr 2007
    Location
    Baltimore, Md
    Posts
    4,028
    Post Thanks / WTG / Hug
    Blog Entries
    2
    Rep Power
    38

    Default

    Quote Originally Posted by Libby View Post
    I'd have two sets of envelopes. One for current and one for the next month. Use a way to differentiate if possible - diff coloured envelopes, stickers, etc. Or use jars a la Gail V.O. method this way they're re-useable.
    This is what I was thinking... If it takes 12 different sets of envelopes so be it, though quarterly might be easier. Any extra she has can go into future months or be divided into some savings and fun money.

Similar Threads

  1. Math
    By Nishu in forum Education
    Replies: 7
    Last Post: 10-19-2008, 09:49 AM
  2. Help me with the math
    By FreesiaE in forum General Chat
    Replies: 5
    Last Post: 07-02-2008, 02:07 PM
  3. Can someone help me with my math?
    By FrugalMomof3 in forum Debt Reduction & Money Management
    Replies: 12
    Last Post: 06-02-2008, 05:00 AM
  4. Right start math vs Math u see?
    By my4littlebuffaloes in forum Education
    Replies: 2
    Last Post: 06-07-2007, 01:02 PM
  5. i need math help...
    By Missy in forum General Chat
    Replies: 8
    Last Post: 01-12-2007, 04:39 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •