My mama used to say...

I'm trying to raise three responsible savers and spenders!

Well actually it was probably my Dad that used to say 'Michelle, don't go getting yourself in debt, only buy what you can afford. There is no use living a life that is beyond your means' and you know what? It sure took me a long time to learn that.

Now at the ripe old age of 41 I know he is right and that living in constant debt and therefore worry is no fun at all. Of course we all have debts - mortgages, loans and credit cards but the challenge is to keep them in check and to make sure they do not spiral out of control. I'm in the lucky of position of living in a borrowed house right now, which means we do not have a mortgage and on the one hand this is fabulous and eases my mind but on the other I then have the worry that we are not currently investing in our future. Luckily I have my eyes firmly fixed on God and that means I can let Him be concerned about the years to come and I just need to focus on being obedient and loving right now.

Why bother with a joint bank account?

Image by Hin255 from Free Digital Photos. Net

It really is true that children learn what they live. Growing up as a child my parents made all spending decisions in consultation with each other and they only had one joint bank account that was used for everything. I don't know why they choose to have a joint account, if it was what was done in those days, if it just seemed like the logical thing to do or if it was because both of my parents came into their relationship without any real earthly riches and were starting from scratch together.

I grew up knowing that what was Dads was also Mums and vice versa. there were never tense conversations about money and they were both very sensible and only spent when they could afford it. We didn't have abroad holidays or new cars as those things were beyond their means but we always had everything we needed and more importantly lots of fun and love.

I thought every family worked in the same way so I was super surprised when I found out from friends that many of their parents still had individual accounts. It seemed there were lots of different sets-ups within families, like totally separate accounts and no joint account at all or a joint account were a proportion of each salary went in and then separate accounts too. One partner might pay all insurances and the other for the holidays that year but I have to be honest this way makes no sense to me. What happens when one car is written off and the insurance won't cover it, would they just let one partner suffer alone?

Over the years many of my girlfriends have questioned why I would want a joint account with dh, I often got asked questions like 'why would I give up my independence?' or 'do you really want him to see everything you spend?' but for me it is all about trust and honesty. Yes there have been times over the years when he has felt I've spent too much (and on the wrong items) and I've had to face the music and we have talked about it and come to a compromise but it feels like it would be far more hassle to try and sort things from separate bank accounts and to hide things away from each other.

I've been with my husband for nearly 21 years and we made the decision to buy a house just three years after becoming an item. It was at this point that I started to ask him about having a joint current account so we could sort all our bills out from one place and with minimal fuss. It is quite amusing to think back to it now but I remember being hurt and insulted at the time, as my husband said he didn't want a joint account with me as he could not trust me with his money. I was gutted but realistically knew he was completely right. There were many times at university when my parents had bailed me out with a couple of hundred pounds and there was nothing I liked better than a good shopping spree. Spending really was something that made me very happy.

So the compromise was that we would have a joint account for all house-related bills and we would both put a set amount in there each month, We both earned around the same salary but of course the difference was dh saved and I spent. In fact we could never of purchased that first house if he had not had the deposit to place down for it. Over the next few years I proved myself with money and grew up an awful lot in relation to spending and being mindful of what was affordable.

By the time we married in 2002 we had a joint account where both of our wages were directly paid into and all bills and spending came out of. We both kept separate current accounts for a while but soon closed them down as they became a bit defunct without any money regularly being deposited. Now in 2015 we just have the one joint current account and no individual accounts for day-to-day spending. I only earn a minimal amount as predominantly I stay home and look after our family and I'm pleased to say never has dh pulled the 'it's my money' card. We both play valuable parts in our family life and therefore what we have in a monetary sense is shared and I'm so glad of our joint account as I'd hate to have to ask dh for money to pay for the kids clubs or to fill the car with petrol.

Our joint account gives me as a work-at-home mum independence and here are a few more reasons why I think joint current accounts are a great idea -

• One bank account for all your income and expenditure makes life much easier to keep track of. You instantly know what your current monetary position is.
• It also allows you to budget effectively together for shared costs such as food and holidays or save for bigger expenses such as a wedding. 
• Either of you can manage/reconcile the account and keep an eye on what is happening. 
• You are accountable to each other and therefore less likely to spend on a whim. 
• It encourages open conversation around money, spending and saving and that is never a bad thing. 
• It is good to be able to build up some savings in your joint account so that if you need to take a loan or mortgage you are able to prove your dual income and expenditure easily. 
• The Financial Services Compensation Scheme protection limit of £85,000 is a per person limit, so you are protected for twice the amount in your joint account.

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What does your bank statement say about you?

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On the drive to work this morning I was listening to Premier Christian Radio and there was an interesting feature about the march which happened in London on Saturday and also about the strength of feeling in the UK that the average person is being treated unfairly with all the new funding and benefit cuts that are happening.

I am proud to know a friend who got off her bum and went to the march this weekend and stood up for what she felt is right. I am embarrassed to admit that I do not really have a full clear picture of what is going on in our economy.  I rely on my husband to keep me up to date with what I need to know and I also allow his opinions to help form my own.  This is not because he is controlling or this is his wish, I am just a bit out of the loop.  I rarely listen to the radio, read a paper or watch the news on the TV, I am normally busy doing something else. 

Anyway, this radio feature then went on to discuss that there has been a public outcry for new taxes, which some are naming the Robin Hood taxes, ie that the rich give to help the poor.  This of course led to discussion about the banks and how much some people are earning and how little the banks can be paying in corporation tax.  It was stated that Barclays made £60 million profit in 2006 but paid just 2.4% in corporation tax, due to all the loop holes that they can make use of.  How can that possibly be right when someone who earns £20,000 gives back approximately 22-25% of their earnings? 

What is it they say? The rich get richer and the poor get poorer but this is abysmal and actually just makes me want to sit down and cry  but I know that would not help anyone.  So what can I do?  an average mum of 3 who works part-time and does various other activities including charitable ones. A cash poor, tie poor Mum. What can I do to make a difference?  If you have an idea please do leave me a comment, I would appreciate it.

Surely this inequality is where the focus needs to be, lets start with the concept of fairness. It is not right that some people in the UK do not have a bed to sleep in or that they cannot remember their last hot meal yet others may have just earned £7million for a years work. I am not saying it is wrong to earn good money, if you do well, work hard, are talented, have been given a good break or similar then you will earn more than the average and well done to you but you have to apply the biblical concept of 'enough' surely? Once you have enough money to live comfortably then how can you justify stock piling more and more money?

I know that often I am dreaming of more: staying at home and not having to do paid work, just being able to volunteer; that kitchen re-fit; a second car; an abroad holiday.  All things that may come one day and things that I know are not essential but what about those people who are dreaming of the next car when the last one is only a couple of months old or having the bathroom refurbished when it was only done a year ago or having their 40th party on an exclusive Caribbean island for the cost of £400,000.  These things I just cannot see are right or OK.  The concept of enough has been well and truly forgotten there.

So today, why don't you take a look at your bank statement (and credit card statement or is that statements?) and see what it is telling you.  Where you actually spend your money is where your real priorities lie.  Looking at mine I can see most of our money goes on buying and running our house, feeding and clothing us all, giving to charities, having meals out or take aways, buying and running our car and saving for our children's future. If I wanted to cut down I could spend less on our food bill, clothing and meals out but actually none of them are done to excess so I feel quite happy we are spending wisely and being good stewards of what the Lord has provided us with.

I would have hated to look at that statement and know that money was being wasted on alcohol, gambling, cigarettes, excessive gadgets, crazy mobile phone bills, gaming systems and games, beauty products, glossy magazines or anything else in the same vein. Go back a few years though and you certainly would have found that many of those things featured on my statement in a disproportionate manner to the amount I earned.  I regularly over spent and bought unnecessary items.  It is great to realise how much things have changed for me in the last 10 years or so.

Don't get me wrong I am not telling you to stop spending on the things you enjoy, I am just saying take a look at your own spending habits and analyse where the money is going and you might just be surprised. 

Are you looking after the money you have or is it being frittered away?


Whether you decide to make any changes if entirely up to you.  In fact having sat and read this post a few times I might just have to make some changes to the amount I spend on clothes for the kids and myself.  A fabulous blog post I read a little while back has sat at the back of my mind niggling away at me and really I know I should be more cautious in this area.