Berkeley Parents Network: Finances 101: Where to Start

Berkeley Parents Network

Finances 101: Where to Start

Berkeley Parents Network > Advice > Household Management > Finances 101: Where to Start

Husband handles finances - I'm clueless
Need to learn how to manage our money better
More Advice about Managing Household Finances

Husband handles finances - I'm clueless

May 2008

I'm not even sure how to ask about this....I am SOOOOOO not a numbers/money brain. My husband does all the tax prep for our tax guy and most of our family bookkeeping. I pay most of the household bills either on line or with checks, but he does all the entering into the computer. We have a family of 4 and are both self employed. Some investments, mortgage, insurance, etc. We work hard and sometimes struggle financially but generally are comfortable and have what we need.

We are in our 50's and 60's (and have teenagers). I worry lately that if anything happened to my husband (G-d forbid) I would have no idea what our finances are about. I know next to nothing about how my husband runs his business (with employees, payroll, bills, etc). I would have no idea what even to look at first....would his business run without him? Would I be expected to take over? What about all of our loans, insurance, life insurance, health insurance, etc.

What I'm asking is....how do I start to learn about our family finances...my husband has his own system for filing, keeping track etc, so if I start to look thru the files I have no idea what i''m looking for. I know the first step is to ask him about it, which I have and we always agree that I need to learn and that he'll show me, but somehow it never happens.

Do I need to take a class about finances? Is it easier then I'm thinking? Where do I start? I'm somewhat annoyed at myself and also embarrased that I allowed my self to ignore this aspect of our lives for so long, but really when money/finances talk comes around I glaze over. Any advice wll be so appreciated. Thanks in advance, anon

i suggest you start by speaking to a person at each one of your financial institutions. lets say you have a retirement account at Fidelity Investments, a bank account at Bank of America, maybe an accountant as well. take each statement (tax return to accountant) from each institution and walk through it with a representative. start with the bank, then the brokerage houses. at first the language will seem arcane, but eventually you will get it. this is just a start...

We were similarly clueless, and met with Brandi Bernazzani. She went through our budget with us, helped us figure out exactly what we bring in, what we send out, helped us organize our finances, make a plan for college and retirement. She is wonderful-very approachable and giving, and she comes to your house! Not at all like a typical financial planner in a fancy office, but she has just as much expertise. I highly recommend her. Monica

Hello -

Most of the advice you received so far said to go see a ''professional'' - please remember that most of these ''professionals'' receive compensation and kick backs/commission for their advice - just read the financial/business section of the paper regularly and you'll see stories about people who innocently walked into their bank (major - well known institutions) asked for ''safe investments'' and were sold horrible products with high fees, unreasonable penalties and lost lots of money for these people.

If you're in DEBT and need help getting out - you can start with Suzy Orman's 9 steps to financial freedom - she has simple ways for you to start tracking your spending and climb out of the debt. Once you get beyond that - you can start with other books like ''boglehead's guide'', and ''the four pillars of investing'' -

There's no easy way or magic pill. A part of growing up responsibly is learning these financial skills - which are unfortunately not taught in any reliable public way - and why too many people are led astray by professionals.

If you are just overwhelmed and want to get pointed in a direction - seek a ''fee based'' advisor who only charges you for the financial review and does not receive commission for the products they sell you.

If you see an advisor and they immediately start telling you that a universal life insurance, variable or equity index insurance plan are safe, reliable ''investment'' vehicles - RUN - don't walk out of that person's office and read more books.

Most of these books are at the library too so you don't even have to spend any money - just your own time and effort. You can do it! Protect Yourself - Use Your Own Brain!

Did not see your original post, but if you are looking for a great book on family finances, I highly recommend How to Make the Most of Your Money by Jane Bryant Quinn. I discovered this book when I was in my twenties and it has been my bible. I recently decided to see a financial planner and he basically told me that I'd been doing such a great job, I didn't need him. The book covers all the basics and is very easy to understand. Figured it out

Sorry for late post. If as I believe you said, your husband is willing, you just haven't worked out a way to share the information: have him (you can help) create a summary of all your financial information. This isn't as bad as it sounds, and unless your situation is unusually complicated, shouldn't be more than a couple of pages. For each account, list the name and address of the financial institution, the account number, the name(s) in which it is held, and the type of account (IRA, checking/savings, investment account, etc.) Same for insurance policies (include the beneficiaries if it's a life insurance policy) loans (list the original amount, monthly payment, etc.) and credit card accounts. Then keep it all in a very safe place (one copy off-site, in a safe deposit box or with a very trusted person) and update it once a year.

Everyone should have something like this; not only is it critical in case of disaster, it's helpful for things like retirement planning and applying for loans. The first time through it's hard to assemble the information, then it gets easier. Sarah

Need to learn how to manage our money better

June 2007

I have become interested in how to manage our money better and create substantial savings, but I should have learned this stuff long ago. Can anyone give me some advise on websites or books or general tips to become financially savvy? I have been doing quite a bit of reading from our local library's collection of books. anon

Read ''Woman and Money'' by Susie Orman...you can also get it as an audiobook. It has totally changed my way of thinking about money, my awareness, my money management(good for men too). She's really clear, interesting, touches ALL areas where you might have questions and makes excellent suggestions. I got it as an audiobook on itunes...for someone who might have little time to actually sit and read a book, this is a great alternative. Good luck. money ignorant no more

Read the book : ''The Richest Man in Babylon''. Totally about saving, perfect examples of people who make barely nothing, but still manage to save. Take care Anon

I think Money Magazine is a great tool. The title may sound a bit elitist but it's not. They include sound investing advice but also have a lot of practical day to day advice. The day to day advice includes best strategies for insurance, buying a home, etc. I also like their profiles of actual people & recommendations for improvement. I haven't taken this but noticed that Piedmont Adult School has investing classes for all people and classes especially for women as well. jahls

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