Parents’ Forum Managing Finance in the Home Rosecity Total Child Academy A session held at Sweet Sensation Saturday June 21, 2014 A session held at Sweet

Parents’ ForumParents’ ForumManaging Finance in the

HomeManaging Finance in the

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Rosecity Total Child AcademyRosecity Total Child Academy

A session held at Sweet SensationSaturday June 21, 2014

A session held at Sweet SensationSaturday June 21, 2014

Activity Anchor TimeArrival & Registration

Teacher Chinedu 9.45 – 10.00

Opening Prayer First Parent to arrive

10.00 – 10.05

Welcome Address Mummy Rose 10.05 – 10.10Workshop Session Mr. Adefarakan 10.10 – 11.10Questions & Feedback

All 11.10 – 11.40

Closing Prayer Last Parent to arrive

11.40 – 11.45

Refreshment Teacher Balogun 11.45 – 12.00

Programme Flow

Opening Teasers

Who do you make your next of kin?How many of us have joint Accounts?What about letting your spouse know how much you earn?How about telling your wife spouse about your investments?

Big Picture PerspectivesBig Picture Perspectives

A. Money promises happiness, but the facts say otherwise.A. Money promises happiness, but the facts say otherwise.

B. What couples argue about the most and longest is money. That’s a fact, too!B. What couples argue about the most and longest is money. That’s a fact, too!

The Reasons:The Reasons:

1. We have little, if any, practical, financial instruction to draw on.

1. We have little, if any, practical, financial instruction to draw on.• Few of us were taught money

management practices at home.• Few of us were taught money management practices at home.• Few of us were taught money management practices in school.• Few of us were taught money management practices in school.• Therefore, most couples address their financial issues through a painful trial and error process.

• Therefore, most couples address their financial issues through a painful trial and error process.

Big Picture PerspectivesBig Picture

Perspectives

B. What couples argue about the most and longest is money. That’s a fact, too!B. What couples argue about the most and longest is money. That’s a fact, too!

The Reasons:The Reasons:

2. We also have differing financial personalities.2. We also have differing financial personalities.

• The number conscious personality.• The number conscious personality.

• The carefree personality.• The carefree personality.


Perspectives

C. For the reasons above, the Bible speaks long and loud on money with a wisdom that works.

C. For the reasons above, the Bible speaks long and loud on money with a wisdom that works.


Perspectives

High Yield Money Practices for CouplesHigh Yield Money Practices for Couples

A. Face the facts.A. Face the facts.

“Therefore, laying aside falsehood,speak truth to one another.”“Therefore, laying aside falsehood,speak truth to one another.”

Ephesians 4:25Ephesians 4:25

A. Face the facts.A. Face the facts.

1. Know what you really spend.1. Know what you really spend.

2. Tracking.2. Tracking.


B. Decide together as a couple where you want your money to go before you spend it.

B. Decide together as a couple where you want your money to go before you spend it.“Can two walk together unless they be agreed?”

“Can two walk together unless they be agreed?”

Amos 3:3Amos 3:3




1. Look at the facts and budget out of this reality.

1. Look at the facts and budget out of this reality.2. Most couples will need some outside help getting started with a budget.

2. Most couples will need some outside help getting started with a budget.3. Important: Never spend money that has not been pre-approved.

3. Important: Never spend money that has not been pre-approved.


C. Limit debt.C. Limit debt.

“The borrower becomes the lender’s slave.”“The borrower becomes the lender’s slave.”Proverbs 22:7Proverbs 22:7

1. The good1. The good• Home• Home

2. The questionable2. The questionable• Car loans• Car loans• Education loans• Education loans• Home Equity loans• Home Equity loans

3. The ugly3. The ugly• Credit cards• Credit cards


A Winning Formula for Managing Your Money at Home


A. This budget formula should be managed by Mr./Mrs. “Numbers Conscious.”

A. This budget formula should be managed by Mr./Mrs. “Numbers Conscious.”

MTH is monthly take home income.MTH is monthly take home income.

MTH - G - S - 1/12 IE - CA - RMB = DMMTH - G - S - 1/12 IE - CA - RMB = DM



G is the money we give away.G is the money we give away.

“He who is generous will be blessed.”“He who is generous will be blessed.”

Proverbs 22:9Proverbs 22:9





1. We need to regularly give some of our money away.1. We need to regularly give some of our money away.2. The Christian honors God for blessing him by giving a regular tithe.2. The Christian honors God for blessing him by giving a regular tithe.

“Honor the Lord from your wealth, and from the first of all your produce.”

“Honor the Lord from your wealth, and from the first of all your produce.”

Proverbs 3:9Proverbs 3:9





3. For every man, Christian or not, giving:3. For every man, Christian or not, giving:

• Is a character builder that counteracts corrupting greed.


“But those who want to get rich fall into many foolish and harmful desires. For the love of money is the root of all sorts of evil and some by longing for it have pierced themselves with many sorrows.”

“But those who want to get rich fall into many foolish and harmful desires. For the love of money is the root of all sorts of evil and some by longing for it have pierced themselves with many sorrows.” 1 Timothy 6:9-101 Timothy 6:9-10





3. For every man, Christian or not, giving:3. For every man, Christian or not, giving:


• Is a character builder that counteracts corrupting greed.• Connects us to helping others which is a major ingredient to personal happiness.

• Connects us to helping others which is a major ingredient to personal happiness.• Connects us to a greater purpose than ourselves which is a second major ingredient to personal happiness.

• Connects us to a greater purpose than ourselves which is a second major ingredient to personal happiness.




S is what we pay to ourselves for saving for the future.S is what we pay to ourselves for saving for the future.

1. Save something out of every income.1. Save something out of every income.2. A healthy, monthly saving amount: 10%2. A healthy, monthly saving amount: 10%




1/12 IE is what we pay to ourselves for irregular expenses that come due throughout the year.

1/12 IE is what we pay to ourselves for irregular expenses that come due throughout the year.

1. Quarterly car insurance, Christmas expenses, school tuition, repairs, etc.1. Quarterly car insurance, Christmas expenses, school tuition, repairs, etc.

2. Open a “freedom account.”2. Open a “freedom account.”




CA is Mr./Mrs. Carefree’s monthly allowance we pay out to bless and boundary our mate.

CA is Mr./Mrs. Carefree’s monthly allowance we pay out to bless and boundary our mate.




RMB are the regular, monthly bills we pay.RMB are the regular, monthly bills we pay.




DM is the discretionary money we have left for ourselves as a couple.DM is the discretionary money we have left for ourselves as a couple.

1. Couples need to decide in their budget which areas should get this DM and how much.

1. Couples need to decide in their budget which areas should get this DM and how much.2. Young married couples or couples who lack financial discipline may need to put these amounts in cash envelopes and spend out of them to discipline their discretionary spending.

2. Young married couples or couples who lack financial discipline may need to put these amounts in cash envelopes and spend out of them to discipline their discretionary spending.




DM is the discretionary money we have left for ourselves as a couple.DM is the discretionary money we have left for ourselves as a couple.

3. The numbers conscious personality watches over DM when it stays in the check book.

3. The numbers conscious personality watches over DM when it stays in the check book.




What about credit cards?What about credit cards?

1. No charging unless we both agree.1. No charging unless we both agree.2. Relinquish cards you can’t control.2. Relinquish cards you can’t control.




What about God?What about God?




Case Study

Monthly Take Home

MTH 50,000

Give Away G (Tithe, Help, Parents & Others) 10,000

20%

Savings S 5,000 10%Irregular Expenses

IE (School Fees, Repairs, Fuel - Car and Gen, 7,500 15%

Care Free Allowance

CA (An allowance for freedom spend) 5,000 10%

Regular Monthly Bills

RMBRent, Electricity Bills, Groceries, Others 7,500 15%

Discretionary Money

DM (Available for investment and joint decision making)

15,000

30%What about Joint Accounts?Who do you make your next of kin?What about letting your spouse know how much you earn?How about letting your wife spouse about your investments?

A. Accept responsibility for sound financial practices in your home whether you are the numbers conscious personality or not.

A. Accept responsibility for sound financial practices in your home whether you are the numbers conscious personality or not.

Four “Musts” for the Married Man Concerning Money


1. It reduces stress and conflict between you and your wife.1. It reduces stress and conflict between you and your wife.

2. It draws your wife’s respect and admiration.2. It draws your wife’s respect and admiration.

3. It brings security to your wife (a top feminine need!) and freedom to your marriage.

3. It brings security to your wife (a top feminine need!) and freedom to your marriage.4. It requires the paradox principle.4. It requires the paradox principle.

B. Make sure you have provided for the future of your family.B. Make sure you have provided for the future of your family.

1. Will1. Will

2. Insurance: death, disability2. Insurance: death, disability



C. Provide a safe place for keeping all your important financial information.

C. Provide a safe place for keeping all your important financial information.1. Put everything in a fireproof

container at home or in a safety deposit box at a bank.

1. Put everything in a fireproof container at home or in a safety deposit box at a bank.2. Put a love letter inside.2. Put a love letter inside.



D. Keep growing in your financial understanding.D. Keep growing in your financial understanding.

1. Read good books.1. Read good books.

2. Seek wise, outside counsel.2. Seek wise, outside counsel.

3. Get into a couple’s financial study group.

3. Get into a couple’s financial study group.

Four “Musts” for the Married Man Concerning MoneyFour “Musts” for the Married Man Concerning Money

Questions & Feedback

Documents

Parents’ Forum Managing Finance in the Home Rosecity Total Child Academy A session held at Sweet Sensation Saturday June 21, 2014 A session held at Sweet