Sunday, June 10, 2012

Financial Peace Recap

I had to miss Financial Peace University class last week while I was a delegate at Iowa Annual Conference, so this week I will review both the “Buyer Beware” and the “Clause and Effect” lessons.

Week 6: Buyer Beware: The Power of Marketing on Your Buying Decisions
"He who is impulsive exalts folly." - Proverbs 14:29
People can always spend more than we make, so we must develop power over our purchases! To help you win with money and gain the power over your purchases, Dave Ramsey shares 5 things that we should do:
1. Wait overnight before making a major purchase.
2. Consider your motives as you buy. No amount of stuff will create contentment or fulfillment.
3. Never buy anything you don't understand.
4. Consider the "opportunity cost" of your money.
5. Seek the counsel of your spouse (or an accountability partner if you are single).

Week 7: Clause and Effect: The Role of Insurance in Your Financial Plan
"Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever." - 1 Timothy 5:8
In this lesson, Dave Ramsey talked about the types of insurance you need and the types you should to avoid. The seven types of coverage you need are:
1. Homeowner's or Renter's Insurance (should be "guaranteed replacement cost")
2. Auto Insurance
3. Health Insurance
4. Disability Insurance (Try to buy one that pays if you cannot perform the job you were educated/trained to do.)
5. Long-Term Care Insurances (You need this if you are over 60.)
6. Identity Theft Protection
7. Term-Life Insurance (Dave recommends 10 times your income.)
There are 8 types of insurances that Dave Ramsey taught us to avoid:
1. Credit life and disability
2. Credit card protection
3. Cancer and hospital indemnity
4. Accidental death
5. Any insurance with cash value, investments, or refund
6. Pre-paid burial policies
7. Mortgage life insurance
8. Any kind of duplicate coverage

Financial Peace, Jr.: Working Lesson
"Train up a child in the way he should go, and when he is old he will not depart from it." - Proverbs 22:6
Today, William and I started working through the Financial Peace, Jr. program. We talked about work and how to earn money. We did some fun activities together and then created the required (for free) chore list and the commission-paid chores. It was fun going through the first lesson together and having William pick his chores and then talk about how much he would be paid for completing each. I am excited about taking teaching William about money to help him learn the habits to be successful in the future.

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