The Color of Money I What would you do if you won $1,000? (share answers) Many of us have different answers. Some of you would blow it. Some would save it. Some would pay bills, etc. We have different opinions when it come to how we spend our money. Let’s look at your own values related to money. (Give The Color of Money handout) Briefly read the statements on the front and back to yourself. Place a check beside the statements that you agree with. Do not check it if you are not quite sure or if you disagree with the statement. This works best if you go with your first instinct—not what you want others to think about you or what you think you should do. Be honest!!!! Don’t spend a lot of time analyzing each statement. Read, respond, and move on. (NOTE: For low literacy or vision impaired groups, read each question aloud or ask for volunteers to read a section. Make sure they don’t discuss or make comments to influence others.) As you complete each section, total up the number of checks in that section. (Pause for time to compete)

Why Talk about Money? Communicating effectively will be a key to handling your money. Research shows couples argue about money more than any other topic, regardless of income, age or education. Sometimes a lack of income to meet basic needs is the cause of the problem. But many times inadequate communication about money is the reason for disagreements. Many financial problems occur because family members don’t understand their money situation. When family members don’t “talk things over” even the most workable spending plan is doomed to failure.

Money Can cause conflict in relationships Financial issues leading cause of divorce Can cause stress and health problems Learn our money values from many sources Differences in money values can cause conflict and add stress to relationships. Financial issues are often cited as the leading cause of divorce. Gallop Poll found 56% of all divorces were the result of financial tension in the family. Money value differences can lead to disagreements among married and dating couples, siblings, friends and parents and children of any age. Does anyone have want to share an incident related to a money values conflict? (NOTE: If no one has one to share, be prepared with one to share.) How might your job performance be affected by personal financial problems? (low productivity, absenteeism, stress and health problems) Where do we learn our money values? (pause for feedback) We learn our money values from a variety of sources (some good and some maybe not so good) including parents, friends, television, advertising, etc.

Spending Values Food Shelter Clothing Education Automobiles Entertainment/hobbies Travel Other One reason is we have different values related to money, just as we have different values related to other things like family, religion, education, etc. What are spending values? Spending, or money values, are things that we feel are important enough on which to spend our money. (Have participants name things on which they spend money.)

The Color of Money I What would you do if you won $1,000? (share answers) Many of us have different answers. Some of you would blow it. Some would save it. Some would pay bills, etc. We have different opinions when it come to how we spend our money. Let’s look at your own values related to money. (Give The Color of Money handout) Briefly read the statements on the front and back to yourself. Place a check beside the statements that you agree with. Do not check it if you are not quite sure or if you disagree with the statement. This works best if you go with your first instinct—not what you want others to think about you or what you think you should do. Be honest!!!! Don’t spend a lot of time analyzing each statement. Read, respond, and move on. (NOTE: For low literacy or vision impaired groups, read each question aloud or ask for volunteers to read a section. Make sure they don’t discuss or make comments to influence others.) As you complete each section, total up the number of checks in that section. (Pause for time to compete)

Check the YELLOW statements you agree with: ___ There’s no need to budget-either you have enough money or you don’t. ___ Worrying about money never helps. ___ If there’re financial problems, someone will help. ___ Live from paycheck to paycheck and don’t worry about it. ___ Keeping track of everything you spend can drive you crazy. ___ It’s not that important to save a lot of money. ___ Why make plans about money? ___ Just wait and money problems either go away or take care of themselves. ___ You can get by without health insurance if you don’t have a lot of money. ___ Live with confidence in the future and the help of charging items now. Total YELLOW check marks

Check the GREEN statements you agree with: ___ Children should have the best education money can buy. ___ Success is a fancy car and a good-looking house. ___ Buying brand names is important. ___ It’s nice to buy friends meals or gifts. ___ People shouldn’t know if you have to pinch pennies. ___ I’d like to have nothing but the best. ___ It’s important to look successful. ___ You should spend a little more than you can afford to get ahead in life. ___ A big income means you are successful. ___ Cheap stuff isn’t worth much. Total GREEN check marks

Check the ORANGE statements you agree with: ___ We spend our money on what we care most about. ___ There are a lot of things more important than money. ___ Children should learn not to put a dollar amount on everything. ___ It’s nice to make gifts, even if you can afford to buy them. ___ It’s silly to try to keep up with what other people have. ___ Money doesn’t buy happiness. ___ A lot of money would be nice, but not necessary. ___ It’s easy to have fun with simple things not connected to money. ___ It doesn’t make sense to want the best things just because they are the best. ___ I’d choose a job with less pay and short hours over long hours and high pay. Total ORANGE check marks

Check the BLUE statements you agree with: ___ Happiness is buying something new. ___ A person is entitled to some of the nice things from life. ___ It’s hard to wait for something you really want. ___ It would be easy to spend $5000 in a few days. ___ The more money you make the more you want to spend. ___ Credit is great. ___ Walking thru stores can be depressing-there’s so much you want. ___ It would be wonderful to be a millionaire-all that money to spend. ___ No matter how much I have, I want more. ___ If I want something, I should have it now. Total BLUE check marks

Check the pink statements you agree with: ___ Every debt should be cleared up as you go along. ___ It’s a good feeling to have money to spend. ___ Don’t buy until you really need something. ___ You should budget your money and stick to the plan. ___ There should always be enough money in the bank for emergencies. ___ It’s important to keep a record of everything you spend. ___ Shop around until you find the best price. ___ A person needs a lot of insurance. ___ Paying cash is the best way. ___ Thrifty people manage best. Total PINK check marks

Transfer your number of checks for each color: _____YELLOW _____GREEN _____ORANGE _____BLUE _____PINK Determine which “color” you checked most often by transferring each section’s total to the back page. Let’s find out what your selections may say about your own money values. As we go through each section, think about how some of these characteristics may describe your own values or the values of others you know. You may have chosen two colors equally—both of the corresponding statements may describe you.

Not concerned with $ Don’t worry about it – We’ll get help

Wants prestige & status Buys high quality, expensive items, designer labels

Money is not important Value the fulfillment it brings Happy with less

A great urgency of wants Self-indulgent A great urgency of wants Wants new & trendy things

Money is a symbol of security Doesn’t want debt Things don’t have to be fancy or expensive

The Color of Money What Does Money Mean to You? (Your Economic Values) Yellow – Not concerned about money Don’t worry about it Someone will help Green – Status and prestige are important Wants designer labels & high quality Buys expensive items Orange – Money is not important Values the fulfillment that $ buys Happier with less “things” Blue – Could be self-indulgent (spends on self) Has a great urgency of wants Wants new & trendy Pink - Money is a symbol of security Things don’t have to be fancy or expensive Doesn’t like debt Do some of the statements you selected accurately describe your money values? Do the descriptions fit any of your family or friends? Would their responses be different from yours? Let’s think about money values affect relationships. What if a person who has Pink characteristics tries to manage money with someone who has Green characteristics? Could this cause conflict? (Discuss—example: The Pink person my be comfortable with a used car in good condition, while the Green person may want to buy a newer, more expensive model. What if a person with the Blue characteristics gets together with a person with Orange characteristics? What kind of problems could they have? The Orange person my have trouble understanding why a Blue person may feel frustrated for not being able to spend many on the things that he or she wants. (Discuss other possible scenarios if time allows.) There are no “right” or “wrong” money values. It’s important that we realize what our own money values are, so we can better understand why we spend our money the way we do and possibly have better control over those urges. Realizing that people have values different from ours may help to better communicate those differences and avoid conflict.

How to “Argue” about Money Choose words carefully Check your timing Watch your attitude Recognize that whoever makes the money does not have the only right to say how it should be spent Stick to the issue Negotiate When having discussions about family finances: Choose words carefully. Avoid words that may be misunderstood. Check your timing. Don’t discuss an issues when family members are tired or involved in a favorite television program, not feeling well, or under pressure with an important work assignment. Watch your attitude. Recognize whoever makes the money does not have the only right to say how it should be spent. It should be a joint decision. Stick to the issue. Avoid dragging other points into the discussion. Encourage communication by beginning with “I think” or “I feel” Avoid ‘you always’ and ‘you never’ Be willing to negotiate for a realistic settlement of differences. All should be ready to offer a solution. Give each other clues when the tension is letting up, such as a smile or gentle touch.

Family Council Meetings Help family members explore beliefs, values and wishes Chance to voice complaints, ask questions, give suggestions Meet regularly Involve everyone Make plans and decisions One way to ensure family involvement in money decisions is by holding family council meetings. These meetings help each member explore their own beliefs, values and wishes. They also offer the chance to voice complaints, ask questions and give suggestions. Plans and decisions can be made in the family council meeting. Involve everyone old enough, including elementary age children if they show signs of understanding the idea of “family money”. Arrange a regular time and place to meet.

Any Questions? Are there any questions?

Portions adapted from: Getting Fi$cally Fit Originally Prepared by the Center for Personal Financial Education