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’m a little behind on the whole filing my taxes and getting my stimulus check thing, but thankfully there is a wonderful concept called filing an extension. So I finally filed my taxes just last week and look forward to receiving not only my refund but also the much-hyped stimulus check soon. My tax refund is pretty much already spoken for, with a good portion of it going towards a charitable donation. That just leaves the stimulus check. What to do?

I am torn between going on a shopping spree and adding the money to savings. The government hopes I will use that money to stimulate the economy, and while a new TV sure would be nice, I’m also trying to save up for a vacation next summer. That money would definitely make a nice dent in the ever increasing price of airfare. I know that saving the money is probably the smart thing to do, but I do have a weakness for new shoes… Just teasing…well, not really! (Doesn’t everyone have an envelope just for shoes?)

So here is my question for all you Enjoy your Money blog readers out there – what did you/are you planning to do with your stimulus check? Did you save it? Spend it? Use it to pay off debt? Did you donate it to charity? I’d love to hear about what you did and if you still think you made the best decision, so post your comments!

Jennifer Streiff, Business Development