AGE APPROPRIATE STRATEGIES ANSWER KEY
If the children are very young, use a clear
VALUE SYSTEM MYSELF
CONTAINER to save. SOPHISTICATED LONELINESS
IMPORTANT EMPOWERMENT
USE THREE ENVELOPES FOR AGES 5 12: NEGOTIATING CONTROL
HUNTING ACCOUNTABILITY
1. GIVING SELF PURCHASE
2. SAVING ESTEEM BUDGET
3. SPENDING SCORECARD SCHOOL’S
FEAR YOUR
Somewhere around 13–15 years old, open a TERROR COMMISSIONS
SECURITY POWERFUL
CHECKING ACCOUNT for the child and MONEY FIGHTS WORK
UNITY WORK
teach him or her how to run it by monthly reviews. BOTH EXAMPLE
GIFT DEBT
GENERATION CHANGE BOTH CONTAINER
Do you know a teenager who could use some financial peace? NERD GIVING
Be sure to check out our Generation Change program for teens FREE SPIRIT SAVING
at daveramsey.com/teens. SAVER SPENDING
SPENDER CHECKING
Pssst... TIME POVERTY ACCOUNT
IMPULSE
The video is ending soon. Turn the page
to find out what happens next.
One-Minute Takeaway
What jumped out at you in this lesson? How can this a ect your story?
Financial Peace University Coordinator Guide
DISCUSSION & ACTIVITY
Reveal Class Statistics (2 minutes)
Share the results of the Class Statistics Exercise with the class. Tell them:
• How many families/households are represented
• How much non-mortgage debt the class has as a whole
• How much the class as a whole has in savings
It is not unusual for the total debt to be surprisingly high, even in small classes. As you
reveal the numbers, emphasize that everyone is in this together by saying:
The biggest takeaway from this exercise should be that we are
not alone, no matter where we are on our financial journeys.
Plus, this gives us a great picture of where we’re all starting.
We’ll do this activity again at the end of FPU to see how far
we’ve all come together.
Break Into Small Groups
If your class is larger than 20 people, split the class into multiple discussion groups with
a co-coordinator for each group.
Arrange the chairs in to a circle for the small group discussion.
Small Group Discussion (10 minutes)
Take out the Question Cards numbered 1–3.
Distribute all three to individuals in the group
Direct everyone’s attention to page 30 of their Member Workbook and say:
I’ve passed out a few cards with numbers on them to help with
our small group discussion. Whoever has Card 1 will read the
first question, and we’ll all talk about it together. Then whoever
has Card 2 will read the second question. We’ll keep going until
we’ve covered all the questions. We’ve got about 10 minutes, so
let’s get started.
52 Coordinator Only
Small Group Discussion
true life-change happens when you open up and work through this material
tmoagteetrhiaelr.tBogreeatkheurp. Binretoakduispcuinstsoiodnisgcruosuspiosnogf raobuopust o15f npoeompoleretothtaalnk 2th0rough
tpheeofpolellotwo itnaglkqtuhreosutigohnst.hBeefohlolonwesintginqyuoeusrtiaonnssw. Beersh!onest in your answers!
1 Each person in the group should take 15 seconds to answer
the following question: Throughout this program, you will be
challenged to try things you’ve probably never done. Just for
1 the next eight weeks, are you willing to commit yourself to the
principles—even if you have disagreements? Why or why not?
2 Zig Ziglar says, “Show me your calendar and your checkbook,
and I will tell you what is most important in your life.” Take out
your Quick-Start Budget and note the three areas where you
spend the most money. What surprises you about your top
2 three categories?
3 Do those three largest expenses accurately represent what is
most important to you? If so, how does that feel? If not, what
3 would you like your largest budget categories to be in the future?
4
5
30 Relating With Money Coordinator 53
Relating With Money 30
Financial Peace University Coordinator Guide
BREAKOUT GROUP EXERCISE
It’s time for your first breakout group exercise! This allows smaller groups
within your class to take the material a step further with practical application.
Nerd and Free Spirit Quiz (11 minutes)
Instruct your small group to break into smaller groups of 4–5 people.
Married couples should stay with their spouse in these breakout groups. Each team should
appoint a team leader to read the instructions and keep things moving.
Explain the purpose of this activity by saying:
The quiz on page 31 of your Member Workbook will show each
of us how big of a Nerd or Free Spirit we are. Have fun with it,
but don’t take it too literally. This is supposed to be fun! You
will have about 10 minutes to complete the quiz, and then you
will review the discussion questions among yourselves in the
smaller groups. I’ll be walking around the room if you have a
question or need help with anything.
Walk around the room as they complete the quiz.
Help them with discussion questions as needed. If time allows near the end of the activity, call
the groups back together and ask for feedback on what they discussed.
54 Coordinator Only
Breakout Group Exercise
Break into smaller groups of 4 5 people to work through the following activity.
Choose a leader to read through the exercise aloud and keep the group on
task. Your coordinator will call the groups back together to report your indings.
Activity: Nerd and Free Spirit Quiz
Going one row at a time, fill in the bubble for the statement that best represents you.
Add up your totals at the bottom and chart your score on page 33. If you’re here with
your spouse, they will use the additional quiz on the next page.
STATEMENT 1 OR STATEMENT 2
You actually enjoy balancing You’d rather balance a spoon on your
the checkbook. nose than balance your checkbook.
Rules are important and Rules are more like suggestions
should be followed. to be considered.
You are always on time. You show up “on time.”
Always. Give or take 15 minutes.
You spend more time planning the Vacations are more fun when the
vacation than the vacation itself. calendar’s blank and you just “go.”
Recipes should be precisely followed. Recipes are suggestions. Just do
Like rules. a dash here and a dash there.
You read the introductions of books. You skip introductions.
They’re in there for a reason! Then it’s like you read more!
You organize your shirts by color, You’re doing good just to get
or you will when you get home. your shirts hung up.
You can’t wait for Dave to teach You’re considering faking an illness
about budgeting. the night of the budget lesson.
“Living for the moment” “Living for the moment” sounds
sounds irresponsible to you. like the soundtrack of your life.
Clutter is annoying and frustrates you. It’s not clutter; it’s character!
Your Nerd Score Your Free Spirit Score
Coordinator 55
Relating With Money 31
BREAKOUT DISCUSSION
Activity: Nerd and Free Spirit Quiz
This second quiz sheet is provided for spouses only. Singles can skip right to the score
sheet. Going one row at a time, fill in the bubble for the statement that best represents
you. Add up your totals at the bottom and continue to the score sheet.
STATEMENT 1 OR STATEMENT 2
You actually enjoy balancing You’d rather balance a spoon on your
the checkbook. nose than balance your checkbook.
Rules are important and Rules are more like suggestions
should be followed. to be considered.
You are always on time. You show up “on time.”
Always. Give or take 15 minutes.
You spend more time planning the Vacations are more fun when the
vacation than the vacation itself. calendar’s blank and you just “go.”
Recipes should be precisely followed. Recipes are suggestions. Just do
Like rules. a dash here and a dash there.
You read the introductions of books. You skip introductions.
They’re in there for a reason! Then it’s like you read more!
You organize your shirts by color, You’re doing good just to get
or you will when you get home. your shirts hung up.
You can’t wait for Dave to teach You’re considering faking an illness
about budgeting. the night of the budget lesson.
“Living for the moment” “Living for the moment” sounds
sounds irresponsible to you. like the soundtrack of your life.
Clutter is annoying and frustrates you. It’s not clutter; it’s character!
Your Nerd Score Your Free Spirit Score
56 Coordinator
32 Relating With Money
tESt RESULtS FoR BREAKOUT DISCUSSION
TEST ONE RESULTS
Ultra Nerd 8
Nerd 6 8 oh-So-Free Spirit
6 Free Spirit
Nerd-ish 4
4 Free Spirit-ish
TEST TWO RESULTS (FOR COUPLES)
tESt RESULtS FoR
Ultra Nerd 8 8 oh-So-Free Spirit
Nerd 6 6 Free Spirit
Nerd-ish 4 4 Free Spirit-ish
Coordinator 57
Relating With Money 33
BREAKOUT DISCUSSION
What your score says about you...
Nerd-ish (4 5) Free Spirit-ish (4 5)
You balance your checkbook regularly, You’ve got a budget, but you can’t
shop only when things are on sale, and remember the last time you actually
you got rid of your credit cards years ago. looked at it.
Nerd (6 7) Free Spirit (6 7)
When it comes to budgeting and paying Budgets are for people who don’t live in
down debt, all you do is win. the now or really seize the day.
Ultra Nerd (8+) Oh-So-Free Spirit (8+)
You are a Nerd to the tenth degree. Budgets are for boring people.
DISCUSSION QUESTIONS
1. Tell your group where you landed: Nerd, Free Spirit or right in between?
Does this surprise you? Why or why not?
2. Free Spirits, tell your group why the “Saving” category is so important.
3 Nerds, tell your group why the “Entertainment” category is so important.
4. Free Spirits, tell your group what unique strengths your Free Spiritedness brings
to the table.
5. Nerds, tell your group what unique strengths your Nerdiness brings to
the table.
58 Coordinator
34 Relating With Money
Financial Peace University Coordinator Guide
ENDING THE CLASS
Class Wrap-Up (4 minutes)
Review This Week’s Homework on page 35 of the Member Workbook.
Stress the importance of the Budget Committee Meeting and accountability partners.
Encourage members in your class with teenagers to check out Generation Change.
Dave and Rachel have a Bible study just for teens! Members can find out more about the
home or group study options at daveramsey.com/gc.
Make sure the FPU Attendance Sheet is complete and turned in.
Remind everyone to review and bring the Quick-Start Budget form or their EveryDollar
budget to class next week.
They need to get in the habit of having their budget with them for every class.
Tell everyone that next week’s lesson is Cash Flow Planning.
Make sure everyone makes a special point to be in class next week by saying:
Next week’s lesson, Cash Flow Planning, is probably the most
important lesson of the whole class. Dave will show us how and
why to do a budget every single month. This lesson is the key to
the whole program, so don’t miss it!
Remind everyone that if they miss a class they can view lessons online at FPU Central.
Encourage everyone to be gracious guests.
Return the chairs to their original places and make sure any garbage is removed.
Class dismissed!
After Class
Complete the items on the After-Class Checklist on page 17 of this guide.
Log in to FPU Central and find the Class Snapshot tool.
Here, you can enter the totals from the Class Statistics Exercise cards you collected this
week. These numbers will be stored in your coordinator profile so you can track how much
debt you have helped people pay off throughout all of your classes!
60 Coordinator Only
This Week’s Homework
Personal finance is 20% head knowledge and 80% behavior. Take charge of
your financial behaviors by completing the following tasks this week. Be sure
to work with your spouse or accountability partner where noted!
Identify your accountability partner.
Singles: It’s time to find your accountability partner. Make a
short list of your top choices and get a commitment from
someone this week!
Married Couples: Sign in to the online resources and download
a copy of the Budget Committee Meeting rules. Be sure you
both get a copy to review for this week’s meeting!
Review your Quick-Start Budget together.
Singles: Share your Quick-Start Budget with your new
accountability partner and discuss what you’ve learned so
far in FPU. Tell them about the Nerd/Free Spirit concept and
identify which one you both are.
Married Couples: It’s time to call your first Budget Committee
Meeting! Talk about what you’ve learned so far in FPU and how
you feel about your Quick-Start Budget. Identify and discuss
the strengths and weaknesses you each bring to the table
using the Nerd/Free Spirit model.
Register for the online tools.
If you have not done so yet, sign up for FPU Central at
daveramsey.com/fpucentral for the additional online tools
and resources.
Reading Assignment: Read the “Relating With Money” chapter
in Dave Ramsey’s Complete Guide to Money.
Prepare for next week.
Get ready by reading ahead to next week’s lesson!
Coordinator 61
Relating With Money 35
FINAL WORD
The Danger Zone
So the old joke goes: If you lend your brother-in-law $50 and he never talks to you
again, was it worth the investment?
The joke may be funny, but Check out the statistics from is different than eating with
experiencing this in real life is a recent money and etiquette your family.
anything but funny. Just ask survey:
anyone who has experienced it The turkey is more succulent, the
firsthand. Loaning money to a • 57% of people said they mashed potatoes are creamier,
friend or family member is a bad have seen a friendship or the green beans are juicier, and
decision. You simply can’t justify it. relationship ruined because the rolls melt in your mouth.
one person didn’t pay back Doesn’t that sound delicious? And
Someone who lends money to the other. all because you didn’t make the
a loved one has their heart—not mistake of loaning money.
their head—in the right place. It is • Almost 50% have loaned
okay to give money, but loaning $100 or more to help Think about it. When you’ve
money to someone with whom someone, but 55% don’t loaned money to a family
you have a relationship will lead to get repaid. member, how did you feel the
broken hearts and broken wallets. next time you saw them?
• 71% lend money to
Eventually, it has a way of immediate family members, A loan has a way of hanging over
destroying relationships because 57% to relatives, and 54% to the head of both the lender and
loaning money introduces guilt, friends. the borrower. There’s a fog in the
judgment, and a lack of trust. air every time you see that other
Brothers and sisters grow apart. One fact not quoted in the survey person—and it’s a fog that will
Parents and adult children is that Thanksgiving dinner tastes only be cleared when the debt
begin to argue. It’s just never 100% better when friends or is repaid.
a good situation. relatives don’t owe each other
money! Eating with your master
62 Coordinator
36 Relating With Money
It starts out as an emotional decision. LESSON
You want to help them—they are KEY TERMS
family, after all, right? Maybe guilt sets
in. Maybe you’re in a decent financial Accountability: The quality or
position and you’re able to help out, state of being accountable, liable
so why not? or answerable
Free Spirit: A person who
So you give in and make the loan. You thinks that everything will work
probably have some type of loose out fine; typically hates to deal
agreement, like, “Just pay me back with numbers
when you can”—which they interpret Nerd: A person who is picky
as, “Just pay me back sometime in about budgeting and numbers
the next 20 years.” Time Poverty: A situation in
which a person is lacking time,
If someone is in genuine need, it’s great which leads to stress
to help. If you help with money, make it a Value System: A person’s
gift instead of a loan. priorities, beliefs and standards
that affect how he or she views
And that’s where the awkwardness rather than putting someone else in the world
starts. Because, let’s be honest, financial bondage to you. That’s not
loaning money makes relationships only the healthiest option for their Coordinator 63
awkward. Parents who lend their finances, but it’s also the best option Relating With Money 37
newly married daughter and her for your relationship.
husband a down payment for a
house think they are helping out the If you can’t afford to make it a gift,
new family. then it’s not a good idea. Sit down
with them and explore some other
Soon, however, they are giving the alternatives that will help them earn
young couple disapproving looks the money, whether it’s a second
when an upcoming vacation, a car, job, selling stuff, or re-examining how
or a new piece of furniture becomes much money they really need.
more important than repaying
the loan. This leads to nothing but By not having an I.O.U. hanging
resentment and pain on both sides. It over your head, you will keep your
is inevitable. relationships strong.
Don’t fall into this trap and do this to
people and relationships that mean
something to you. If someone is in
genuine need, it’s great to help. If
you help with money, make it a gift
instead of a loan.
Think about how much more of an
impact you can make by giving a gift,
Financial Peace University Coordinator Guide
CASH FLOW PLANNING
VIDEO TIME: 57 MINUTES
Expect This
This week’s lesson is about budgeting, which is absolutely crucial to everyone’s
success. Show some excitement! The class will follow your lead, so show some
enthusiasm for learning a new way of handling money.
This week’s class activities include a Breakout Group Exercise in which class
members will break into smaller groups to work through three budgeting case
studies. Take some time before class to work through the case studies yourself so
you can be available to help your members during class.
Do This
Review the Before-Class Checklist on page 16 of this guide.
Finalize your class roster by logging in to FPU Central. Check the list of
registered members and make sure the FPU Attendance Sheet lists everyone
who has registered.
Financial Peace University Coordinator Guide
WELCOME & REVIEW
Do This (5 minutes)
Welcome everyone back and emphasize what an important lesson this is.
Budget check! Have everyone take out their Quick-Start Budget form or their
EveryDollar budget.
Remind them that you’ll check to make sure everyone is bringing their budget to class
every week from now on.
Reiterate the importance of the budget by saying:
I told you last week that you will not win with money or get
much out of this class if you don’t do the budget. This week,
we’re going to learn how to do the full monthly budget that we’ll
all do every month from now on. And I’m going to check every
week to make sure you have it!
Review last week’s material.
Read this question aloud to the class:
Over the last week, did you either get an accountability partner
or have your first Budget Committee Meeting with your spouse?
If so, how did that go?
If not, what are some reasons why you aren’t there yet?
Note: If you have a large class, just have everyone give a one-word or one-sentence
response. This usually gets some surprisingly insightful answers.
Instruct everyone to turn to page 40 of their Member Workbook.
Circulate the FPU Attendance Sheet for members and guests to sign during the video.
Start the Video
The following pages match the Member Workbook so you can follow along with your class.
Coordinator Only 67
Tell Your Story
Week 3
What are your initial thoughts or concerns as
you look toward your first full budget?
DAtE
PCLAASHNFNLOIWNG
THE NUTS AND BOLTS OF BUDGETING
Oh no! The dreaded B-word: budget! Many people are scared to
death of the very idea of a budget. It drums up images of living
on bread and water and a dull, dreary, no-frills way of life. That’s
not what we’re talking about!
The truth is, the budget is your key to success! Like Dave says,
money makes a fantastic servant, but it is a horrible master. And
if you don’t tell your money where to go and what to do, it will
definitely master you the rest of your life. In Cash Flow Planning,
you’ll learn how to make your money work for you and how to
put together a household budget that really works!
You will either learn Budgeting Basics FLOW plan
to manage money
or the lack of it will Money is ACTIVE .
always manage you.
You must do a written CASH
—DAVE RAMSEY
every month.
Be diligent to know
the state of your For which of you, intending to build a tower, does not sit
flocks, and attend to down first and count the cost, whether he has enough to
your herds. finish it—lest . . . all who see it begin to mock him, saying,
“This man began to build and was not able to finish”?
—PROVERBS 27:23
—LUKE 14:28–30
You have to BALANCE your bank account.
accinoIofutunthyteo,hucoohwnnleeitcenokde bohraueetllsapoonuufcrriecgetuysurotiuanortgrial Overdrafts are a sign of CRISIS LIVING and
FPU Central.
sloppy, lazy money habits.
70 Coordinator
40 Cash Flow Planning
If not managed and made to behave, the ATM Automatic overdraft
card and the DEBIT card are certain to become loans netted banks
more than $29.5 billion
budget busters. last year.
—time
The most popular method of banking by far is
A budget is simply
INTERNET banking. telling your money
where to go instead
Reasons We DON’T Do a Cash Flow Plan of wondering where
it went.
MOST PEOPLE HATE THE WORD “BUDGET”
FOR FOUR REASONS: —JOHN MAXWELL
• It has a BREAD and WATER If you aim at nothing,
you’ll hit it every time.
connotation.
—ZIG ZIGLAR
• It has been used to ABUSE them.
Ymmtouoiosrnbtttbeaohukcdsoeogmrsne!osttoiDwstwoothno.e’nonTt’uthttwaabobtnrey’drsyptte;ohorketfalheteyiach.nrtigTrnsdthfhwemreiokollmfnetiysrthtsih.astert
• They never had a budget that really
WORKED .
• Paralysis from FEAR of what they’ll find.
CASH FLOW PLANS DO NOT WORK IF YOU:
• LEAVE things OUT .
• OVERCOMPLICATE your plan.
• Don’t actually DO one.
• Don’t actually LIVE on it.
Coordinator 71
Cash Flow Planning 41
If you’re struggling to Reasons We SHOULD Do a Cash Flow Plan
maintain the Four Walls,
check out the free Credit A written plan removes the management by CRISIS
Sharks in Suits lesson
online to learn how to from your finances.
get some traction with
your budget. THE FOUR WALLS:
Build up the Four Walls that protect your family by
daveramsey.com/fpu/sharks
prioritizing FOOD , basic CLOTHING , shelter
and utilities, and transportation.
But if anyone does not provide for his own, and
especially those of his household, he has denied
the faith and is worse than an unbeliever.
—1 TIMOTHY 5:8
The plans of the Managed money feels like getting a RAISE .
diligent lead surely
to plenty, but those of
everyone who is hasty,
surely to poverty.
—PROVERBS 21:5
72 Coordinator
42 Cash Flow Planning
A WRITTEN PLAN, IF ACTUALLY LIVED AND AGREED ON . . . “Zero-based” does not
mean your bank account
• Will remove many of the MONEY FIGHTS should hit zero! Keep a
pad or bu er of around
from your marriage. $100 in your account to
catch any little budget
• Will remove much of the GUILT , shame missteps.
and FEAR that may now be a part of buying
necessities such as food or clothing.
• Will show if you are OVERSPENDING
on a certain area.
• Will give you a sense of POWER and
CONTROL over money that you can’t get any
other way.
The easiest and most powerful plan is a ZERO -based
plan using the ENVELOPE system.
BUDGET FORMS
Use the examples on the following pages as a guide. Dave
covers these in the lessons, but there are several other forms
available to help you master your money. You can find all the
forms, our budget tutorials, and free budgeting tools in FPU
Central. Ready to bring your budget forms to life? Create your
budget online by using your free 90-day trial at EveryDollar.com.
Coordinator 73
Cash Flow Planning 43
Monthly Cash Flow Plan
Cash lows in and out each month. Make sure you tell it where to go!
Monthly take-Home Pay 3,660
Add up budgeted column here These icons represent good options for cash envelopes
& enter
charitY Spent Budgeted Food Food Insurance Debt Envelope Spent Budgeted
Food Transportation Charity Personal Insurance Debt Envelope *10–15% Transportation Charity Personal Utilities Envelope Rea
Spent 65000
410 Debt Envelope
*10–15% Housing 650*5–15% totAL
tithesSavings Insurance GroceriesMedical
Spent Budgeted
Housing Medical Recreation Clothing Utilities Envelope Personal Recreation Savings Clothing
7755
Transportation Charity EnvelopeEnvelope
Utilities
Debt
Reality Check
Charity & offeringsRealityCheck Food Insurance Clothing Restaurants
PersonalSavings
TransportatiMonedical CharityRecreation
Envelope
to4tA10LFood Housing Utilities
Clothing
Savings
Recreation
Medical
d Transportation Charity Personal Insurance Debt Envelope Housing
Food Transportation Charity Personal Insurance Debt Envelope
saVing Budgeted clothing
ng Medical Recreation Savings Clothing Utilities Envelope Housing Medical Recreation Savings Clothing Utilities Envelope
Envelope
Debt
Check Emergency Fund Reality Check Insurance Adults
Retirement Fund Children
College Fund Personal Cleaning/Laundry
Transportation Charity EnvelopeEnvelope
Utilities
Debt
EnvelopeEnvelope
Food Insurance Clothing Utilities
Food PersonalSavings
Food HouTsrianngsportatiMonedical CharityRecreatioPn ersonalSavingIsnsurance
Debt
Clothing
TransportatiMonedical CharityRecreation Envelope
Utilities
Housing Clothing 150*2–7% totAL
totALMedical Savings Transp
Recreation Food
Food Transportation Charity Personal Insurance Debt Envelope Housing
Envelope
Food Transp
Housing
hoUsing transportation
Spent Budgeted Food Transportation Charity Personal Insurance Debt Envelope Spent Budgeted Transp
Housing Medical Recreation Savings Clothing Utilities Food Housing
200
RealityCheck First Mortgage/Rent 945 Gas & oil Housing
Second Mortgage
Real Estate taxes Housing EnvMeleopdeical Recreation Savings Clothing Utilities Envelope
Repairs/Maint.
Association Dues Debt
Insurance Repairs & tires
Personal
Transportation Charity Reality Check Envelope
Food Utilities License & taxes
Clothing
Savings
Recreation
Medical Car Replacement
Housing
other _________________
ty Personal Insurance Debt Envelope 945*25–35% totAL Food Transportation Charity Personal Insurance Debt Envelope 200*10–15% totAL
Utilities Spent Budgeted Medical/health Spent Budgeted Transp
Envelope 1570550 50 Food
ion Savings Clothing Utilities Housing Medical Recreation Savings Clothing Utilities Envelope
Food Transp
Housing
Electricity Medications
Gas Reality Check
Water
trash Food Transp
Phone/Mobile Housing
Internet Doctor Bills
Cable
Housing
Dentist
124 optometrist
40 Vitamins
other _________________
other _________________
394*5–10% totAL 50*5–10% totAL
*Dave’s Recommended Percentages
Sign in to FPU Central at daveramsey.com to download this form and explore our other online budgeting tools!
Food Transportation Charity Personal Insurance Debt Envelope
Insurance insUrance Spent Budgeted recreation Spent Budgeted
Food Transportation Charity Personal Debt Envelope *10–25%
*5–10% 50
Housing Medical Recreation Savings Clothing Utilities Envelope Spent
to5t0AL
38 Envelope
Budgeted
Debt
310
Life Insurance Insurance Entertainment 14550
Vacation
Personal
Housing Medical Recreation Savings Clothing Utilities Envelope Charity Reality Check Envelope
(work)FoodTransportation Utilities
Health Insurance Clothing
Savings
ality Check Recreation
(escrow)Housing
Homeowner/Renter Medical
Auto Insurance 88
(w12ork)
Disability Insurance debts
Identity theft NAFood Car Payment 1
Long-term Care Transportation Charity Personal Insurance Debt Envelope
Car Payment 2
t1o3t8AL Recreation Credit Card 1 _V__I_S__A_
Housing Medical Savings Clothing Utilities Envelope
personal Credit Card 2 _H__o_m__e_ Depot
Food Transportation Charity Personal Insurance Debt Envelope Spent BudgetedReality Check Credit Card 3 _______
Envelope
Debt
HousinPgersonal Insurance Child Care/SitterClothing Credit Card 4 _______
Medical Recreation Savings Utilities Envelope
portation Charity EnvelopeEnvelope
Utilities
Debt
EnvelopeEnvelope
Insurance Clothing Utilities toiletries 60 Credit Card 5 _______
ChPeercskonalSavings Student Loan 1
Reality
portatiMonedical CharityRecreation
Insurance Debt Cosmetics/Hair Care
Clothing
PersonalSavings
portatiMonedical CharityRecreation
Envelope
Utilities Education/tuition Student Loan 2
Clothing
Savings
Recreation
Medical Books/Supplies Student Loan 3
Child Support Student Loan 4 48
Alimony other ____H__o_s_p_i_t_a_l_____
Subscriptions other _________________
organization Dues other _________________
Envelope Gifts (inc. Christmas) other _________________
Replace Furniture
Debt Pocket Money (His) other _________________
Pocket Money (Hers)
Insurance Baby Supplies 3300 553Your goal is O%
Pet Supplies
Personal
portation Charity EnvelopeEnvelope
Utilities
Debt
EnvelopeEnvelope
Insurance Clothing Utilities *5–10% totAL
portatiMonedical CharityRecreatioPn ersonalSavingIsnsurance
portatiMonedical CharityRecreatioPn ersonalSavings Debt
Clothing
Envelope Once you have completed filling out each category,
subtract all category totals from your take-home pay.
Utilities
Clothing
Savings
Recreation
Medical
Music/technology Use the “income sources” tAKE-Ho3M,6E6P0AY
form if necessary – CAtEGoRY3t,6o6t0ALS
Miscellaneous
Add up totals 0= ZERo BALANCE
other _________________ from each category
other _________________ Remember —
120*5–10% totAL Tbhuedggeotalisoftao zero- based
get this
number to zero
Sign in to FPU Central at daveramsey.com to download this form and explore our other online budgeting tools!
Allocated Spending Plan
Don’t let this one scare you. Managing your money week to week happens here!
Pay Period Dates 7/1 to 7/14 7/15 to 7/29 to to
Pay Period Income
3,188 472 Budgeted Remaining Budgeted Remaining
_ Income | |
Tithes | |
= Remaining totbhuisdgpeaty period
charitY Budgeted Remaining Budgeted Remaining
Budgeted Remaining Budgeted Remaining
410 | 2778 Transportation C
tithes | Food
Charity & offerings | | Food C
TransportatiMonedical
Remaining
Housing
Food
“Remaining” minus “Budgeted.” Back & forth.Personal Medical
d Transportation Charity Insurance Debt Envelope Housing
Housing
saVing Budgeted Remaining Budgeted
ng Medical Recreation Savings Clothing Utilities Envelope
Transportation C
Emergency Fund | | | | Food
Retirement Fund | | | | Food C
TransportatiMonedical
Housing
College Fund | | | | Food C
TransportatiMonedical
Housing
Medical
Food Transportation Charity Personal Insurance Debt Envelope Housing
hoUsing Budgeted Remaining Budgeted Remaining Budgeted Remaining Budgeted Remaining
Housing Medical Recreation Savings Clothing Utilities Envelope | 1833 | | |
| | |
945First Mortgage/Rent | | | | C
| | | |
Second Mortgage | | | | Transportation
| | | |
| Food
Real Estate taxes Medical
Housing
Repairs/Maint.
Association Dues
other _______________
Personal Insurance Debt Envelope
n Savings Clothing Utilities Utilities Budgeted Remaining Budgeted Remaining Budgeted Remaining Budgeted Remaining
Envelope 100 75 | |
55 | |
Electricity 40 | 1733 124 | 397 | |
Gas | | |
Water | | 342 | |
trash | |
Phone/Mobile | | |
Internet | |
Cable | |
other _______________
| 1693 | 218
|
|
| |
| |
Sign in to FPU Central at daveramsey.com to download this form and explore our other online budgeting tools!
Pay Period Dates 7/1 to 7/14 7/15 to7/29 to to
zeWrhoe,nyo“uR’erme adionniengb”udegqeutailsng Budgeted Remaining Budgeted Remaining
for this pay period.
| |
Food Food Personal Insurance Debt Budgeted Remaining Budgeted Remaining | |
Transportation Charity Envelope
450 | 1243 150 | 68 Budgeted Remaining Budgeted Remaining
Envelope 50 | 1193
| | |
Debt GroceriesMedical | |
| |
Insurance Housing Recreation Savings Clothing Utilities Envelope
Budgeted Remaining Budgeted Remaining
Personal EnvelopeEnvelope
Utilities | |
Charity | |
Envelope | |
Debt Restaurants | |
| |
Insurance Clothing | |
CharityRecreatioPnersonalSavings
Utilities Budgeted Remaining Budgeted Remaining
Clothing
Transportation SavCinhgasrity Personal Insurance Debt Envelope
Recreation
Medical Recreation Savings Clothing clothing Budgeted Remaining Budgeted Remaining
Utilities Envelope
75 | 1118 |
Envelope 75 | 1043 |
|
Debt |
Insurance Adults
Children
Personal Cleaning/Laundry
Charity EnvelopeEnvelope
Utilities
Debt
EnvelopeEnvelope
Insurance Clothing Utilities
PersonalSavings
CharityRecreation
Debt
Insurance Clothing
PersonalSavings
CharityRecreation
Envelope
Utilities
Clothing
Savings
Recreation
transportation Budgeted Remaining Budgeted Remaining
Food Transportation Charity Personal Insurance Debt Envelope 200 | 843 |
|
Gas and oilRecreation Envelope | |
Housing Medical Savings Clothing Utilities | |
| |
Envelope | |
|
Debt Repairs and tires
Insurance
Personal
Charity Envelope
Utilities License and taxes
Car Replacement
Clothing
Savings
Recreation
other _______________
other _______________
Food Transportation Charity Personal Insurance Debt Envelope
Medical/health Budgeted Remaining Budgeted Remaining
Housing Medical Recreation Savings Clothing Utilities Envelope
Medications 50 | 793 | | | |
Doctor Bills | | |
Dentist ||||
optometrist | | | |
Vitamins ||||
other _______________ | | | |
other _______________ | | | |
other _______________ | | | |
other _______________ | | | |
Sign in to FPU Central at daveramsey.com to download this form and explore our other online budgeting tools!
Allocated Spending Plan
Don’t let this one scare you. Managing your money week to week happens here!
Pay Period Dates 7/1 to 7/14 7/15 to 7/29 to to
insUrance Budgeted Remaining Budgeted Remaining Budgeted Remaining Budgeted Remaining
Charity Personal Insurance Debt Envelope 38 | 30 | |
| |
Clothing Life Insurance | | | |
Recreation Savings Utilities Envelope | | |
| | |
| | | Transportation Ch
| | |
Health Insurance | | Food
Homeowner/Renter | Medical
88 | 705 Housing
Auto Insurance
Disability Insurance 12 | 693
|
Identity theft Food Transport
Long-term Care |
Housing Medica
Transportation Charity Personal personal Budgeted Remaining Budgeted Remaining Budgeted Remaining Budgeted Remaining
Insurance Debt Envelope
| | |
| | | Reality Check
| |
Envelope | 633 | |
| |
Debt Child Care/SitterClothing | | | |
MedicalInsuranceRecreation Savings Utilities Envelope | | | |
Personal | | | |
EnvelopeEnvelope | | | |
Debt Utilities toiletries | | | |
Cosmetics | | | |
Insurance Clothing EnvelopeEnvelope | | | |
PersonalSavings Utilities | | | |
60 | | | |
on | | |
| 603 | | |
Debt | |
| 30 | | |
Insurance Clothing | | |
PersonalSavings | |
on Envelope | |
| |
Utilities Education/tuition | |
|
Clothing |
|
Savings
on
Books/Supplies
Child Support
Alimony
Subscriptions
org. Dues
Envelope Gifts (inc. Christmas)
Replace Furniture
Debt Pocket Money (His)
Pocket Money (Hers)
Insurance Baby Supplies
Personal EnvelopeEnvelope
Utilities
Debt 0
EnvelopeEnvelope
Insurance Clothing Utilities
PersonalSavings
Envelope 30
on
Debt
Insurance Clothing
PersonalSavings
on
Utilities
Clothing
Savings
on
Pet Supplies
Music/technology
Miscellaneous
other _______________
other _______________
Sign in to FPU Central at daveramsey.com to download this form and explore our other online budgeting tools!
Pay Period Dates 7/1 to 7/14 7/15 to 7/29 to to
Food Transportation Charity Personal Insurance Debt Envelope
recreation Budgeted Remaining Budgeted Remaining Budgeted Remaining Budgeted Remaining
Housing Medical Recreation Savings Clothing Utilities Envelope 50 | 553 | | |
| | |
Envelope |
Debt Entertainment
Vacation
Insurance
Personal
harity Envelope
Utilities
Clothing
Savings
Recreation
debts Budgeted Remaining Budgeted Remaining Budgeted Remaining Budgeted Remaining
Personal Car Payment 1 310 | 243 | | |
tation Charity Insurance Debt Envelope 150 | | |
al Recreation 45 | | |
Car Payment 2 | 93 | | |
| 48 | | |
Credit Card 1 _______ | | | |
| | |
Savings Clothing Utilities Envelope | | |
| | |
Credit Card 2 _______ | | |
| | |
Credit Card 3 _______ | | | |
| | |
Credit Card 4 _______ | | | |
| | |
Credit Card 5 _______ | | | |
| | |
Student Loan 1 | | | |
| | |
Student Loan 2 | | | |
| | |
Student Loan 3 | | | |
| | |
Student Loan 4 | | | |
48 0other ___H__o_s_p__it_a__l___
|
other _______________ |
other _______________ |
other _______________ |
other _______________ |
other _______________ |
other _______________ |
other _______________ |
other _______________ |
other _______________ |
other _______________ |
other _______________ |
other _______________ |
Sign in to FPU Central at daveramsey.com to download this form and explore our other online budgeting tools!
Irregular Income Planning
If you have an irregular income, this form just became your best friend!
Any additional irregular income goes here
in priority order, anything that Additional Irregular Income 1,500
make it in your monthly cash flow
List, plan Work back & forth, adding each budgeted item to the running total
didn’t
iteMs bUdgeted rUnning total
Hospital Bill - Snowball 460 + 460
Home Depot - Snowball 770 = 1,230
Extra Entertainment 50 1,280
Chase Visa - Snowball 500 1,780
Extra Clothing 100 1,880
Sign in to FPU Central at daveramsey.com to download this form and explore our other online budgeting tools!
ONLINE BUDGETING RESOURCES ANSWER KEY
Dave recommends using a paper budget for the first few ACTIVE LIVE
months, which is why we’ve included paper budget forms in
the back of this workbook. Don’t forget to check out additional CASH FLOW CRISIS
in-depth budget tutorials when you sign in to FPU Central at
daveramsey.com/fpucentral. BALANCE FOOD
GIVE YOUR BUDGET AN UPGRADE CRISIS LIVING CLOTHING
If you’re the point-and-click kind of ATM RAISE
Nerd, we have some great news! You
can go from pen and paper to high DEBIT MONEY FIGHTS
tech with your free 90-day trial of our
online budget tool, EveryDollar. Plan INTERNET GUILT
your personalized budget before the month begins and track it
on the go. Access your EveryDollar budget at EveryDollar.com. BREAD FEAR
WATER OVERSPENDING
ABUSE POWER
WORKED CONTROL
FEAR ZERO
LEAVE ENVELOPE
OUT
OVERCOMPLICATE
DO
Pssst...
The video is ending soon. Turn the page
to find out what happens next.
One-Minute Takeaway
What jumped out at you in this lesson? How can this affect your story?
Financial Peace University Coordinator Guide
DISCUSSION & ACTIVITY
Break Into Small Groups
If your class is larger than 20 people, split the class into multiple discussion groups with
a co-coordinator for each group.
Arrange the chairs in a circle for the small group discussion.
Small Group Discussion (10 minutes)
Take out the Question Cards numbered 1–4.
Distribute all four to individuals in the group.
Direct everyone’s attention to page 52 of their Member Workbook and say:
I’ve passed out a few cards with numbers on them to help with
our small group discussion. Whoever has Card 1 will read the
first question, and we’ll all talk about it together. Then whoever
has Card 2 will read the second question. We’ll keep going until
we’ve covered all the questions. We’ve got about 10 minutes, so
let’s get started.
82 Coordinator Only
Small Group Discussion
true life-change happens when you open up and work through this material
mtoagteetrhiaelr.tBogreeatkheurp. Binretoakduispcuinstsoiodnisgcruosuspiosnogf raobuopust o15f npoeompoleretothtaalnk 2th0rough
ptheeofpolellotwo itnaglkqtuhreosutigohnst.hBeefohlolonwesintginqyuoeusrtiaonnssw. Beersh!onest in your answers!
1 The key to true financial peace is to give every dollar a name by doing
a fresh budget every single month. First, tell the group whether you’re
a Nerd or a Free Spirit. Then, share what you think about doing a zero-
based budget every month from now on.
2 Dave stresses that you need to set aside a little “pocket money” to
blow each month. Why is this important, and what kind of expenses
would fall into this category?
3 Between cash, auto-drafts, debit cards and online transactions, we
have a lot of different ways to spend money. How do all of these
options impact your ability to actually “feel” money?
4 The envelope system is one of the best methods for learning how to
feel money again. Using your Quick-Start Budget as a guide, discuss
two or three areas for which you can try cash envelopes this month.
52 Cash Flow Planning Coordinator 83
Cash Flow Planning 52
Financial Peace University Coordinator Guide
BREAKOUT GROUP EXERCISE
It’s time for another breakout group exercise! This allows smaller groups
within your class to take the material a step further with practical application.
Budget Case Studies (14 minutes)
Instruct your small group to break into smaller groups of 4–5 people.
Married couples should stay with their spouse in these breakout groups. Each team should
appoint a team leader to read the instructions and keep things moving.
G et everyone started by saying:
Turn to page 53 in your workbook. You’ll be working on some
test budgets to start applying what you’ve learned. This practice
will help you get your head around budgeting before you get
home and start working with your own numbers. You’ve got a
little under 15 minutes for this exercise, so get started. I’ll be
walking around the room if you have any questions.
Have each group complete the three case studies on pages 53–55 of the workbook.
You should walk around the room as they complete the activity to help anyone as needed. If
time allows near the end of the activity, call the groups back together and have each group
report on their findings.
End this exercise by asking:
Did this help you get your head around the budgeting process a
little better? Do you think this is something you could go home
and do this week?
84 Coordinator Only
Breakout Group Exercise
Break into smaller groups of 4 5 people to work through the following activity.
Choose a leader to read through the exercise aloud and keep the group on
task. Your coordinator will call the groups back together to report your indings.
Case Study 1
Michael is a single college student who is in his third week of FPU, and he has
not yet completed Baby Step 1. He has a monthly income of $1,000, but this
activity will only deal with the portion of his budget shown below.
EXERCISE
As you can see, when Michael filled out his Monthly Cash Flow Plan, he was $100 under
budget. In your breakout group, discuss what changes he could make and fill out the
form on the right to get him to a zero balance.
Left to Budget: 800 Left to Budget: 800
Food Transportation Charity Personal Insurance Debt Envelope Food Transportation Charity Personal Insurance Debt Envelope Spent Budgeted
saVing Spent Budgeted saVing Spent Budgeted
Housing Medical Recreation Savings Clothing Utilities Envelope 0 Housing Medical Recreation Savings Clothing Utilities Envelope Spent Budgeted
Reality Check Emergency Fund Reality Check Emergency Fund
Food Transportation Charity Personal Insurance Debt Envelope Food Transportation Charity Personal Insurance Debt Envelope
Envelope Envelope
HoUsing Spent Budgeted HoUsing
Housing Medical Recreation Savings Clothing Utilities Housing Medical Recreation Savings Clothing Utilities
500
First Mortgage/RentRealityCheck First Mortgage/RentRealityCheck
Food Transportation Charity Personal Insurance Debt Envelope Food Transportation Charity Personal Insurance Debt Envelope
Utilities Spent Budgeted Utilities Utilities
Housing Medical Recreation Savings Clothing Utilities Housing Medical Recreation Savings Clothing
Envelope Envelope
Reality Check Electricity 50Reality Check Electricity
75 Gas
Gas 25 Water
50 Internet
Water
Internet
Left to Budget: 800 Left to Budget: 800
Total Budgeted: – 700 Total Budgeted:
–
Di erence: 100= ZERo BALANCE Di erence:
= ZERo BALANCE
Find the zero!
You should end
There are several ways to solve this. The main goal is to up at zero
always balance the budget to zero.
Coordinator 85
Cash Flow Planning 53
BREAKOUT DISCUSSION
Case Study 2
James and Kim have been married for nine years, and during that time, they’ve
never lived on a budget. They have just started Financial Peace University, and
they’re having a little trouble getting their first zero-based budget to balance.
Your task is to help them out. James and Kim have a monthly income of $3,200,
but this activity will only deal with the portion of their budget shown below.
EXERCISE
As you can see, when James and Kim filled out their Monthly Cash Flow Plan, they
were $200 over budget. In your breakout group, discuss what changes they could
make and fill out the form on the right to get them to a zero balance.
Left to Budget: 1000 Left to Budget: 1000
Food Transportation Charity Personal Insurance Debt Envelope Food Transportation Charity Personal Insurance Debt Envelope Spent Budgeted
Envelope Envelope
HoUsing Spent Budgeted HoUsing Spent Budgeted
Housing Medical Recreation Savings Clothing Utilities 850 Housing Medical Recreation Savings Clothing Utilities Spent Budgeted
RealityCheck First Mortgage/Rent RealityCheck First Mortgage/Rent
Food Transportation Charity Personal Insurance Debt Envelope Food Transportation Charity Personal Insurance Debt Envelope
Housing Medical Recreation Clothing Utilities Utilities Spent Budgeted Savings Clothing Utilities Utilities
Savings Housing Medical Recreation
Envelope Envelope
Reality Check Cable 150Reality Check Cable
Food Transportation Charity Personal Insurance Debt Envelope Food Transportation Charity Personal Insurance Debt Envelope
ClotHing Spent Budgeted ClotHing
Housing Medical Recreation Savings Clothing Utilities Envelope 100 Housing Medical Recreation Savings Clothing Utilities Envelope
100
Reality Check Adults James Reality Check Adults James
Children Kim Children Kim
Left to Budget: 1000 Left to Budget: 1000
Total Budgeted: – 1200 Total Budgeted:
–
Di erence: 200= ZERo BALANCE Di erence:
= ZERo BALANCE
Find the zero!
There are several ways to solve this. The main
goal is to always balance the budget to zero.
86 Coordinator
54 Cash Flow Planning
BREAKOUT DISCUSSION
Case Study 3
Chris and Sarah are newlyweds who received FPU as a wedding gift. They used
wedding gift money to complete Baby Step 1, and they are paying off their last
debt on Baby Step 2—a $5,000 car loan with a $400 monthly payment. Chris and
Sarah have a monthly take-home pay of $3,500, but this activity will only deal
with the portion of their budget shown below.
EXERCISE
Your goal is to help Chris and Sarah adjust their budget so they can pay extra on their
car debt. There’s no single “right” answer, so use Dave’s principles to determine what you
think Chris and Sarah should do.
Pay Period Dates 3/01 to 3/15 Pay Period Dates 3/01 to 3/15
Pay Period Income 1500 Pay Period Income 1500
_ Income _ Income
Tithes Tithes
= Remaining totbhuisdgpeaty period = Remaining totbhuisdgpeaty period
CHaritY Budgeted Remaining CHaritY Budgeted Remaining
tithes 170 | 1330 tithes 170 | 1330
Charity & offerings 30 | 1300 Charity & offerings 30 | 1300
“Remaining” minus “Budgeted.” Back & forth. “Remaining” minus “Budgeted.” Back & forth.
Food Budgeted Remaining Food Budgeted Remaining
Food Transportation Charity Personal Insurance Debt Envelope Food Transportation Charity Personal Insurance Debt Envelope
GroceriesMedical 400 | 900 GroceriesMedical |
Housing Recreation Savings Clothing Utilities Envelope 200 | 700 Housing Recreation Savings Clothing Utilities Envelope |
RestaurantsReality Check RestaurantsReality Check
Food Transportation Charity Personal Insurance Debt Envelope Food Transportation Charity Personal Insurance Debt Envelope
Recreation Savings ClotHing Budgeted Remaining Recreation Clothing ClotHing Budgeted Remaining
Housing Medical Clothing Utilities Envelope Housing Medical Savings Utilities Envelope
100 |
ChrisReality Check 100 | 600 RealityCheck Adults Chris |
Adults | 500 Children Sarah
Children Sarah
Personal Budgeted Remaining Personal Budgeted Remaining
Food Transportation Charity Personal Insurance Debt Envelope Food Transportation Charity Personal Insurance Debt Envelope
|
Pocket Money (His)ClothingUtilities 50 | 450 Pocket Money (His)Clothing |
Housing Medical Recreation Savings Envelope 50 | 400 Housing Medical Recreation Savings Utilities Envelope
Pocket Money (Hers)RealityCheck Pocket Money (Hers)RealityCheck
debts Budgeted Remaining debts Budgeted Remaining
Food Car Payment 1 400 |0 Transportation Charity Car Payment 1 400 |
Transportation Charity Personal Insurance Debt __CA_Ea_dnv_redl_oipP_et_iao_yn_ma_lent 0 | 0Food Personal Insurance Debt __CA_Ea_dnv_redl_oipP_et_iao_yn_ma_lent
|
other other
Housing Medical Recreation Savings Clothing Utilities Envelope Housing Medical Recreation Savings Clothing Utilities Envelope You should end
up at zero
Reality Check Reality Check
Coordinator 87
Cash Flow Planning 55
Financial Peace University Coordinator Guide
ENDING THE CLASS
Class Wrap-Up (4 minutes)
Review This Week’s Homework on page 56 of the Member Workbook.
Emphasize the importance of the Budget Committee Meeting for couples and of an
accountability partner for singles.
Make sure the FPU Attendance Sheet is complete and turned in.
Remind everyone to bring their completed zero-based budget back to class next week.
Let them know you’ll be checking their budgets by saying:
Don’t forget to bring your zero-based budget back to class next
week. And don’t worry about me looking at all your budget
numbers. The only number I’ll be looking for is the zero at the
bottom!
Tell everyone that next week’s lesson is Dumping Debt.
Get them excited about next week by saying:
Next week is Dave’s famous lesson on debt. Do not miss it! In
fact, this would be a great opportunity to invite a friend to class!
Remind everyone that if they miss a class they can view lessons online at FPU Central.
Encourage everyone to be gracious guests.
Return the chairs to their original places and make sure any garbage is removed.
Class dismissed!
After Class
Complete the items on the After-Class Checklist on page 17 of this guide.
88 Coordinator Only
This Week’s Homework
Personal finance is 20% head knowledge and 80% behavior. Take charge of
your financial behaviors by completing the following tasks this week. Be sure
to work with your spouse or accountability partner where noted!
Complete your first Monthly Cash Flow Plan.
Use the paper form at the end of this workbook, download a
printable copy from the online resources, or use your 90-day
trial of EveryDollar Plus at EveryDollar.com to complete your
first zero-based budget. Be sure to bring it to class next week
for your coordinator to review! Watch the tutorials online for
more detailed help.
Call a Budget Committee Meeting.
Singles: Share your zero-based budget with your accountability
partner. Identify and discuss any parts of your budget that
seem too expensive or out of control.
Married Couples: Call a Budget Committee Meeting and follow
the rules outlined last week. Identify and discuss any parts of
your budget that seem too expensive or out of control.
Stuff some envelopes.
It’s time to feel some money! Choose a few budget categories
that would work well with the cash envelope system. Use the
envelope icon on the budget forms for our suggestions.
reading assignment: Read the “Cash Flow Planning” chapter in
Dave Ramsey’s Complete Guide to Money.
56 Cash Flow Planning Prepare for next week.
Get ready by reading ahead to next week’s lesson!
Coordinator 89
Cash Flow Planing 56
FINAL WORD
You Know You’re KEY TERMS
on a Budget When …
Budget: A written cash flow
Being on a budget doesn’t mean you can’t have fun! plan that assigns every dollar to
We asked Dave’s Facebook fans for some clear signs that a specific category/expense at
you might be on a budget. the beginning of each month
Kristen: Your 4-year-old asks, Natalie: You ask yourself, How many Envelope System: Series of
“Mommy, do we have a coupon for shifts will I have to work to pay for this? envelopes that are divided into
this?” about any item she wants to categories (food, entertainment,
buy in the grocery store! Jondelyn: You search on the internet for gas, etc.) and are used to store
recipes with ingredients in your pantry. cash for planned monthly
Carrie: When you find yourself expenses
saying, “Dave would not want me to Michelle: When you’re shopping
buy that!” and then walking away. with the kids, the 3-year-old asks for Four Walls: The fundamental
something, and the 7-year-old tells expenses required to keep a
Travis: Your kids are constantly ticked him, “It’s not in the budget!” family operating; they include
off at Dave Ramsey! food, basic clothing, shelter and
Will: When you notice George utilities, and transportation
Kirsten: School supplies become Washington squint at the sunlight when
birthday presents. you pull a dollar out of your wallet. Overdraft: Act of spending
more money through checks
Je : You have all the local Ashlee: When your 5-year-old asks, or debit transactions than is
supermarket ads spread out on the “What is a mall?” actually in the account; also
kitchen table, and you begin called “bouncing” a check
to strategize your coupons like you’re Gary: When you don’t go out and spend
about to invade Normandy. money on Friday night and instead stay Reconcile: Process of
in and list stuff to sell on eBay. matching and verifying
Micki: You get one leg waxed at a time. cleared transactions against
one’s written registry using a
bank statement; also called
“balancing”
Zero-Based Budget: A type
of monthly budget that assigns
every dollar of income to a
specific category; “zero-based”
means that the income minus
expenses should equal zero
DAVE’S FACEBOOK FANS shared these obvious signs that
you might be on a budget. We talk about stuff like this every
day in our Facebook community, so if you’re not in the
conversation, you’re missing out! Join us on Facebook and
add your story to the mix! facebook.com/financialpeace
Coordinator 91
Cash Flow Planning 57
Financial Peace University Coordinator Guide
DUMPING DEBT
VIDEO TIME: 70 MINUTES
Expect This
This week’s lesson will call members to draw a line in the sand regarding their
feelings toward every form of debt. This is a challenging lesson for many people,
but it is absolutely essential for changing our financial behaviors.
After the video and group discussion time, class members will have an opportunity
to cut up their credit cards. This is often an emotional experience. You will have
some who are ready to cut them immediately, while others aren’t ready yet. Just be
prepared for both ends of the spectrum—and everywhere in between!
Do This
Review the Before-Class Checklist on page 16 of this guide.
Be sure to bring your scissors to class this week and every week from
now on!
Financial Peace University Coordinator Guide
WELCOME & REVIEW
Do This (4 minutes)
Welcome everyone back!
Show how excited you are about this week’s lesson.
Budget check! Have everyone take out their Monthly Cash Flow Plan form.
Depending on the size of your class, this may be the best time to personally check
everyone’s budget to make sure it comes out to zero. Start by saying:
Budget check! Take out your budget form or your EveryDollar
budget for me to see the zero at the bottom. I’m going to walk
through and check everyone’s budget right now, so hold it out
as I walk by.
If you have a larger class with co-coordinators for discussion groups, it would be
better to save the budget check for the small group discussion time. Just have each
of your co-coordinators do this same budget check while the discussion groups are
Iin their circles after the video.
You will repeat this budget check every week through the
end of the class. Starting next week, we’ll just call this the
“budget check” without repeating these instructions.
Review last week’s material.
Read this question aloud to the class:
Take out your zero-based budget and tell the class one or two of
the debts on the form. Where did the debts come from, and what
were your reasons for taking them on?
94 Coordinator Only
Financial Peace University Coordinator Guide
CLASS EXERCISE
This is a special two-part exercise designed to get your class members
thinking about their credit cards. We’ll do Part 2 of this exercise after the video.
Credit Card Exercise—Part 1 (2 minutes)
Get everyone thinking.
Ask everyone to respond to the following two questions with a one-word or one-sentence
answer. The goal is to have members start thinking about why they use credit cards.
Question 1
Read this question aloud to the class:
Is there anyone here who does not own or use credit cards?
What’s it like to live without them?
Question 2
Read this question aloud to the class:
Of those of you with credit cards, can someone tell me why you
believe credit cards are so important in your life?
Instruct everyone to turn to page 60 of their Member Workbook.
Circulate the FPU Attendance Sheet for members and guests to sign during the video.
Start the Video
The following pages match the Member Workbook so you can follow along with your class.
Coordinator Only 95
Tell Your Story
Week 4
How would it feel to be 100% debt-free—
now and forever?
DAtE
DUMDPEINBGT
BREAKING THE CHAINS OF DEBT
Debt is the most successfully, aggressively marketed product in
history. What? Debt isn’t a product, is it? You bet it is. And it isn’t
just sold by banks and credit card companies anymore. Many
national retail chains make more money on the sale of credit
applications than they do on the actual merchandise they sell.
In Dumping Debt, Dave blows the lid off the credit game,
debunking the leading myths about debt that have become
ingrained in our natural way of thinking. Then he walks you
right out of debt with his simple, clear and effective debt
snowball technique.
No one can serve two Debunking the Myth
masters. Either he
will hate the one and If you tell a lie or spread a MYTH often enough,
love the other, or he
will be devoted to the loud enough and long enough, the myth becomes
one and despise the
other. You cannot accepted as TRUTH .
serve both God and
money. Debt has been MARKETED to us in so many
—MATTHEW 6:24 (NIV84) forms and so aggressively since the 1960s that to even
imagine living without it requires a complete
PARADIGM SHIFT .
The rich rule over the poor, and the
borrower is slave to the lender.
—PROVERBS 22:7 (NIV)
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60 Dumping Debt
Credit Card Myths
MYTH: You need a credit card to RENT a car or
make PURCHASES online.
TRUTH: A DEBIT card will do all of that.
MYTH: “I pay mine off every MONTH with no Any money you owe to
anyone for anything is
annual fee. I get brownie points, air miles and debt. That includes credit
a free hat.” cards, student loans and
car loans!
TRUTH: More than 100 million Americans do NOT
I figured out that
pay off the balance every month. credit cards are not for
emergencies. That’s
TRUTH: When you use plastic instead of cash, what I have savings for.
you spend more because you don’t DUH!
—Jennifer
FEEL it.
MYTH: “I’ll make sure my TEENAGER gets
a credit card so he/she can learn to be
responsible with money.”
TRUTH: Teens are a huge TARGET of credit card
companies today.
Coordinator 99
Dumping Debt 61
Car Myths
MYTH: Car PAYMENTS are a way of life, and
you’ll always have one.
TRUTH: The typical millionaire stays away from car
payments by driving reliable used cars. That is
HOW they became millionaires.
Ifgeytouridscothu.rfiIcffh,yypoeouuopdgloeetpsotporuoofprfe.,opyloeu MYTH: LEASING your car is what
Guidelines for sophisticated financial people do. You should
All Vehicles: always lease things that go down in value.
1. the combined value There are tax advantages.
of all your cars, TRUTH: Consumer Reports, SmartMoney magazine and
motorcycles, boats a good calculator will tell you that the car lease
and other vehicles
should not be more is the most EXPENSIVE way to finance
than half your annual
income—even if they’re and operate a vehicle.
all paid for. If it is more
than that, you have too MYTH: You can get a good deal on a NEW car.
much money tied up in
things that go down in TRUTH: A new car loses about 60 % of its value in
value.
2. If you can’t pay off the the first four years. This is the largest purchase
car and all your other most consumers make that goes down in value.
debts within two years,
you should sell the car.
You don’t have room
for it in your plan.
100 Coordinator
62 Dumping Debt
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