It is common practice among married couples to keep separate checking/savings accounts and then separate out the bills in some agreed-upon manner and operate the household finances that way.  They’ll divide things up where he pays the mortgage and his car payment, while she pays her car payment, the electricity and the groceries…or something like that.  This concept has never made sense to me, but people will fight and argue until they’re blue in the face that this is the right way to operate a household budget.  I believe it is a dangerous way to manage your household finances for many reasons.  I wanted to use this post to talk about four reasons separate accounts are a bad idea: [Read more…]

There is a disease from which virtually every parent suffers.  It is called “Powdered Butt Syndrome.”  Simply put, Powdered Butt Syndrome is when your parents have the concept that since they powdered your butt, they don’t want your unsolicited advice about money.  I know this is true for two reasons: 1) I have parents and I’ve tried it and 2) I’ve heard about it and seen it before from others.  Very scientific of me coming to that conclusion, wasn’t it?  I’m commonly asked what you can do if you see your parents misbehaving with money.  You’ve probably tried to talk to them about money and offer your advice, and they roll their eyes or glaze over with the look that says, “I’m not listening to you; I still smell the baby powder I put on your butt 35 years ago.”  Maybe it’s because you’re totally broke and just think you have all the answers. Or maybe…just maybe…you really do have the answers for your parents’ financial woes!  This week, let’s talk about how to handle money with your parents. [Read more…]