Personal Finance Blog | Money Management Blog | Financial Help

As a longtime follower of the envelope money management method, it never ceases to amaze me of the many unintended benefits that come from practicing this concept. Recently we had a family situation come up that brought one of these benefits to the forefront to remind us of how powerful this concept really is in our lives.

My oldest child is eleven and very into technical gadgets. This past Christmas he purchased a video iPod with his savings (placed in an actual savings envelope with cash) and a few gift certificates he received from family members. Needless to say he was on cloud nine and his iPod became his pride and joy. Fast forward to summertime and our hectic schedule. Several times my son’s iPod was saved from imminent destruction after it was found in his shorts pocket prior to going through the washing machine. Unfortunately, after a weekend of camping he was not so lucky as his iPod made it into the washer for a full cycle. After trying everything imaginable, including what we found on the web, we did not get so much as a flicker of life out of the thing.

This is where envelope budgeting comes in. My wife and I implemented the envelope concept with our son when he was six or seven. One of the key things we have been able to accomplish with this concept is to instill the idea in our children that they are responsible for earning their own money and caring for the things they purchase. This includes not leaving your iPod in your shorts. Well, we thought these lessons might get seriously tested due to the high price of the item involved, but I am glad to say that our son accepted the responsibility in stride and did not expect his parents to pay for the replacement.

The real kicker in the whole situation came the next week when my son got paid for mowing one of his lawns. He brought his savings envelope into the kitchen and announced how much money he had left to save to replace his iPod and a few things he would forgo to save faster. We are now getting twice weekly updates of the amount left and the jobs he has lined up to provide the needed money. The best part of this story is that all of this was accomplished with limited discussion with his parents. The envelope concept has been a great teaching tool for us and has made it easy for our boys to grasp and use it in their everyday lives.

Richard Kuhn, Business Development

I sit very near our customer support department here at Finicity. I hear a lot of things from that team about our customers and how they utilize our application. Some really have a superb understanding of how Finicity works, while others struggle mightily. And the one common thread I’ve noticed that separates those who are successful with our program from the rest? It’s an overwhelming feeling of responsibility for their own finances.

I am frequently reminded of a popular sequence from the talented comedian Chris Rock where he is addressing parents and their parenting habits. He’s specifically targeting those parents who brag about taking care of their kids: “What do you want? A cookie? Your SUPPOSED to take care of your kids!“, he yells. I feel the same way about finances. You HAVE to do it. You HAVE to improve. You HAVE to make choices that will enable your future success. But I think Chris is wrong about one thing, though. As parents, you do get a ‘cookie’. It may not be chocolate or sugar or snickerdoodle, but if you do it right you get the satisfaction of seeing your kids become miniature versions of you.

It’s the same with your money. It may not feel like fun at first, but you get rewarded for responsibly managing your money. And if you do it right, you get peace of mind, security in the future and almost always more money in the long run (that’s the fun part).

So as you use Finicity to help navigate often difficult financial paths, just remember that being financially responsible now will allow you to Enjoy Your Money both now and later!

Scott Thompson, Business Analyst