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Welcome back everyone, to life lessons
from GRANDPA. This is episode number five,
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our final episode. Tim. It's
called dollars and sense. I'm here
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with Tim Lambert and I give us
an idea what we're going to talk about
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today. To Bill, it's a
great time to be talking about financial commonality,
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that that is, a commonality between
the boyfriend and the girlfriend who,
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perspectively, will become engaged. So
these items that we're going to discuss today
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a very important in that if there's
a failure in the marriage, there's a
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good chance it'll be because of finances. So pay attention to what we're going
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to talk about and hang onto your
hats as we go through this topic.
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Tim. For those who are familiar
with the PODCAST, you're aware that we've
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been relying on the theme of commonality
all the way back since episode number one,
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and we've applied it in so many
different domains, regarding family, regarding
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education, regarding career aspirations, regarding
faith. If there's alignment between the partners
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before marriage, then it stands to
reason that marriage will be stronger and more
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durable because the husband and the wife
are thinking a light, not in a
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robot way, but in an agreement
way, through understanding, through love,
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through compromise. They look at issues
in a similar way. So today we'll
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use our time again applying the tools
of commonality as a relate to family finances.
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Now, Tim before marriage, even
before engagement, individuals, couples have
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certain responsibilities, which you start us
off with, that before a couple enters
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into marriage, there are lots of
financial responsibilities that need to be fulfilled,
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some by the couple together and others
individually. It's so imperative that the young
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couple resolve all existing financial obligations as
soon as possible. We'd like to focus
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on the responsibilities that each of you
have. The first one we'd like to
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address is college debt. Is Their
College debt between either one of you and
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if so, this debt becomes a
burden to resolve, hopefully before marriage,
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so that you don't carry this backpack
into marriage and get rid of all the
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long term debt that you or she
may have. If it's not handled in
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imprompt and quick way, then it
will delay the opportunity of the two of
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you to purchase a home or invest
in your own business or other financial transactions
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that you need to handle. An
area that particularly concerning is credit card debt.
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How much of it are you care
hurrying at this time, before you
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even talk about committing to each other
and recognizing the fact that if you carry
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balances on credit cards, you are
no doubt mindful the interest charges that are
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made by the credit card company,
a huge as much as twenty or more
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percent on unpaid balances, and if
you are late in making at least a
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minimum payment, they will be an
extra burden of a late fee, which
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is significant, as well as a
day on your credit record, your credit
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reputation, something will be talking about
in just a little while. You are
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listening to life lessons from GRANDPA.
This is episode number five. Dollars and
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sense. And while we're talking about
credit card debt, at type of debt,
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we all have our utility bills,
tax bills, other types of loans,
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personal loans. You need to keep
current on all of those. A
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deep dive into each other's spending habits. is either one of you spending in
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uncontrolled fashion to either one of you
have access to your parents credit cards?
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Why is it important whether or not
the man or woman has access to their
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parents credit cards? If you have
an escape to spend your parents money.
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Then it's going to be hidden your
perspective. Soul mate will not know that
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you have a back door in a
way of uncontrolled spending on your part.
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Let me ask another question. You
spoke very eloquently about the threat of college
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debt and many new couples, both
the bride and the groom, are carrying
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educational debt. So what strategies would
you suggest to help these couples saddled with
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educational debt, college debt, so
that they can move forward with their plans
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for a family and for having a
house bill? I wouldn't suggest that college
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debt be a deal breaker between you
and your honey. There may be ways
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that you have conversations with the company
that you owe the money to, whether
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it's a federal government or private lending
interests, that you have conversations with those
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people either to get some of the
debt absolved or change the terms of the
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debt so that it minimizes the interest
costs or charges against the balances owing.
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Or there maybe some other's strategies that
a financial advisor could advise you as to
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how to deal with the college debt
or any other kind of debt you might
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have. Well you're absolutely right.
There's many different pathways to have your college
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debt recalculated, have the debt itself
consolidated and in many ways, to get
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that interest rate knocked down and make
things more manageable. If you simply reduce
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the payment and that's all you do, then all you're going to do is
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push that debt further into your marriage. So you'd want to find constructive solutions.
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What do you think about having the
children approached their parents for support in
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eliminating that college debt? Was a
wonderful idea. Bill. It could be
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that either set to parents would be
able to take on some of that debt
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themselves, depending on their financial circumstance, such as home equity loans or any
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other kind of low cost debt take
the burden off this young couple's back.
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It would be an amazing wedding gift
for sure. And remember the circumstances today
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may be quite different for your parents
then they were five years ago, seven
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years ago, when you were just
thinking about going to college, and perhaps
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their finances are in a better place
today and maybe they'd be willing to help
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you alleviate that educational debt now.
So we spoke about the couple, the
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him and the her, about these
finances? How about the individual the items
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that the young man or the young
woman have to consider regarding their own finances
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as they head towards marriage? It's
important for the couple to examine each other's
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financial practices before getting to the point
of engagement, such as both of them
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established checking accounts, savings accounts,
investment accounts, and they should educate each
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other and, it need be,
they should go to a financial resource person
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or the parents to be taught as
to how they've handled their checking, savings
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and investment accounts. This is life
lessons from GRANDPA. Another item that is
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very critical in examining each other's financial
practices is what happens so that paycheck that
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each of them get. Do they
spend everything out of that pay check for
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just living expenses? Beyond that,
they need to establish a savings plan so
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that they have a positive attitude about
saving some of that paycheck, putting it
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into savings accounts or joint savings accounts
and to maximize the company's for on k,
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to maximize the company match, so
that you're grabbing this free money,
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so to speak, for personal savings. That would be used at some future
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date, generally at retirement. The
sooner that couple can begin to set aside
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those retirement settings, the more it
will grow over thirty or forty years.
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An important lesson that we continue to
hammer the young people, who, you're
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right, often don't save enough.
What do you think about the philosophy of
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pay yourself first by automatically deducting a
portion of your monthly salary straights to savings,
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and then figure out how to get
by on the rest of it?
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Bill? You touch on something's going
to my brain just as you speak paying
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yourself first. My wife and I
always practice that from very early on in
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our marriage. Pay Yourself first.
It's incredible how multiplication of funds happens magically
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if you're disciplined. By way of
paying yourself first. A great concept.
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And don't forget the beauty of compounded
interest. Doesn't sound like much in the
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beginning if you're only getting a few
percent, but as those asset snowball in
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the years and decades ahead, you
will be very glad you set aside that
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money. You are listening to life
lessons from GRANDPA. This is episode number
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five. Dollars and since before you
start spending or saving money. Tim,
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I know there's the need for structure
and we call that a budget. Learn
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how to budget as a single person
and then you both should have that practice
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of a budget and as you come
to the point of matrimony, then you
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are accustomed to living within a budget
and then you'll automatically slide into a family
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budget. The sound advice is to
stick with the budget, including a percentage
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for savings. You know, the
young people are so technologically savvy and they'd
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be happy to know that there are
so many free apps available for their smartphones
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and that will assist them both in
budgeting and savings and will remind them when
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they're spending too much in a given
category or not paying enough attention to their
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savings. Interesting, their own bank
may offer these APPs as well, and
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the beauty of those are that these
programs are linked to their checking and savings
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that counts, so they see the
real numbers in real time and they can
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make smarter decisions that way. And
Tim as I understand it, there's an
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added bonus for the young Fella if
he has his finances in order. Now
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that the young man has his financial
house in order and he's ready to meet
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her father, he's going to be
ready to answer the very vital question that
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the fall the ought to ask him. Is Your Financial House in order,
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and please describe it. Think how
the perspective Fatherin Law will react when you
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tell him of your appreciation for prudent
financial management, when you ask for his
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precious to orders hand in marriage.
This is life lessons from GRANDPA. You're
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listening to episode number five. Dollars
and sense Tim were moving on to an
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important topic that eludes many young people. They don't hear about it until they
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get bad news from a potential borrower. And we're talking about credit worthiness and
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credit scores. Why do you lead
us off? Seeing your credit score can
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be frightening or it can be wonderful. Hmmm, it be wonderful if your
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credit score shows as excellent. Sure
so. You got to be very mindful
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of how your financial transactions occur.
Every move you make will be overseen by
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the three credit rating agencies and any
time you apply for Loane, car loan,
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person alone house loan, these transactions
are always interfaced with your credit score.
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And if you have been delinquent in
making payments to either a credit card
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company or utility bill or some other
kind of bill that is always recorded by
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the credit rating agencies. A merchant, a doctor's bill. There's many examples.
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Tim What happens with a bad credit
score is that you are charged more
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interest if indeed you approved for loan, and furthermore, you might even get
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a rejection, and that's also recorded
with the credit rating agencies. Oh,
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that sounds really interesting. I think
the listeners would want to learn just a
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little bit more about this. Beyond
that, prospective employers will check your FICO
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score. Fik Oh, is that
the same thing as your credit score?
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It is. It's the acronym for
I don't know what the acronym stands for.
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Well, here's a bonus for our
listeners here on life lessons with grandpap.
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The FCO score has been around him
since the S and it was established
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as a credit rating system by two
gentlemen, Bill Fair and his partner Earl
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Isaac, and they formed the fair
Isaac Corporation of the the S. and
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that's where fiiceo comes from. And
you're right, all of the great credit
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agencies rely on a Piko score and
if you have a FICO score that's under
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five hundred and ninety nobody. Let
me say it again, nobody is going
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to loan you any money, give
you a credit card or give you a
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chance to move on with your plans
to raise a family. So it's important
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to be aware of your FCO score
as soon as possible, repair it and
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then keep it as high as you
can keep it. Let's be clear to
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him. If a young man and
young women love each other, it's going
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to be very hard to break up
over their piko score. But fortunately there
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are pathways and resources that they can
use to repair bed credit. But then
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the burden is on them going forward
that both of them maintain that discipline to
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pay their bills on time and to
honor all of their financial commitments. Build
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there are ways around dealing with a
bad credit score, and that is to
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work with financial counselors who will help
heal the debt schedule that you have and
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attempt to improve your credit score up
and beyond the five night you just mentioned,
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so that your goal is to maintain
a high credit score and try to
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leap up towards the eight hundred plus
as the excellent category. So we just
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touched a moment ago on that issue
of transparency between the man and the woman
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we discussed previously. How it relates
to family health histories, behavioral health issues
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that we talked about, how it
places into career intentions, the desire to
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have one or more children, if
there's going to be a stay at home
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parent, again seeking commonality. How
does this apply regarding the finances as well?
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How is transparency essential for a young
couple? Bill, it's important for
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the couple to be very candid and
open with regard to their personal financial situation
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before engagement. By the way,
I caution the young people that they must
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be extremely zealous about pretentioning their pyco
score. It's a critical metric that people
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use as a gage of your personal
reputation. If you have a bad fico
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score, then look upon you as
a bad credit risk. So it's something
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definitely worth protecting now and in the
future. To I know you've got a
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few more important points for us regarding
the finances of young couples. Start us
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off with telling us about who's going
to wear those financial pants in the household.
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Practical experience and years of living as
shown me that typically one of the
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two becomes the financial manager, and
all too often the person who's not involved
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with the finances simply becomes ignorant about
day to day transactions that need to happen.
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And over time this attitude, so
to speak, of the one not
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involved becomes so ingrained in them that
in the event a difficulty happens in the
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life of the responsible person, that
is, death or disability, then the
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one remaining, who is otherwise competent, is left at see by way of
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not knowing anything about the couple's finances, of the families finances. So be
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prepared to always know what's going on
in your family's finances by way of knowing
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the checking account balances and the activity
that happens virtually daily in One's family finances.
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Sure also, when it's pre marriage
time, discuss your finances is deeply
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with your friend, before you get
engaged and before you marry. Certainly so.
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Everybody has a role, various roles, in a healthy marriage, and
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I think what you're saying is it's
not fair for one person to be handling
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all the financial matters and the other
partner abdicates, becomes very passive about it,
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actually maybe overjoyed at the notion if
they don't have to deal with writing
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the checks at night or doing them
online or keeping the book straight. They've
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got a partner to help them with
that. Aside from the issue of someday
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that responsible financial manager in that household
may die or disappear and leave the partner
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helpless, essentially helpless, even when
they're both healthy and well, it's essential
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that both partners remain actively engaged in
how the family finances are doing. How
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can they plan for the future if
they don't? How can they look forward
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to vacations or buying a better home
or moving to a different part of the
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country or other challenges that have deep
financial constraints, unless both of them are
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fully familiar with the facts? That's
the best advice you could give the couple.
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So it's important that the young people
who've been involved in these kind of
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conversations revisit this issue and all the
issues discussed in episodes one through five at
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a later date when they're in the
s and becoming involved with a young woman
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or young man then getting serious.
Please store these episodes in your computer files
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so that you can revisit these suggestions
that we've made as we've gone through these
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different episodes. This is life lessons
from GRANDPA. Now I'd like him speak
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clearly to the ladies who are going
to be involved in these matters in these
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episodes. The caution is that they
not involved themselves and fall in love with
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a guy who will not be a
good provider for you and your family.
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Well, let's dig a little deeper
here and for the young women who are
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concerned about their future husband, what
are some of these warnings that this fellow
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you're in love with May in fact
not be a good provider for the long
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haul? What would be some examples
that should alarm her? If this young
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guy does not seek out a job
opportunities, works part time here and there
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and pursues other self gratification activities that
have nothing to do with career work,
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steady employment, steady paychecks. If
this guy is not a contributor to the
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financial aspects of the household, you
walk away from that person. He's not
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good marriage material. Let me run
a few buy it. What about a
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spendthrift? What about someone who goes
out and buy as a flashy car but
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has an entry level job? Someone
who's dabbling in Bitcoin or someone who's building
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a rare, who knows what,
baseball card collection instead of putting money away
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every month for retirement savings. What
would you say about that bill? Those
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are all red lights. HMM,
red lights are to be avoided. You
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must seek out a different kind of
man who will provide for you and provide
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for your secure future. Well,
financial security is central to a joyful,
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happy, loving and enduring marriage.
We hear it all the time that financial
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concerns often shipwrecked marriages. What are
your views? There's an awful lot of
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stuff that's been written by different people
like Dave Ramsey, and he outlines.
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Are you handle financial affairs and come
to an agreement with your perspective spouse that
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you're going to study material Prut oubt
by reputable authors having to do with these
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financial affairs. Dave Ramsey, what
one says? Finances are the number one
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cause of divorces in American families.
Prepare Yourself, both of you, to
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read and understand the importance of providing
for a financially secure future. Think of
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it like a new pet, if
you will. You know if a couple
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brings a new puppy in the house, they're both going to want to cuddle
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and feed that dog. They're both
going to want to walk that dog,
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they're both going to take the dog
Ti dog obedience classes. Oh, it's
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going to be a great time.
They should approach their financial life during marriage
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much the same way, equally,
armed with good information, aligned and what
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their goals are and clear pathways to
help them at eave those goals. Like
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you said, education, whether it's
online courses, maybe local workshops. There's
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plenty of resources available to help you
with that. A couple who is knowledgeable
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about family finances and is committed to
taking the right steps can obviate what you
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call the number one cause of divorce
in America. If you can settle up
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on those finances, then you'll have
more time and energy and passion for the
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other more important issues that will fill
your day as a married couple well.
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Before we leave episode five today,
Tim and close out this podcast series,
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life lessons from Grandpa, I know
you have a final message for all of
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us. Yes, Bill, a
final message is some of this stuff that
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we've reviewed is really intended for a
later age. When I did this with
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my grandson he was seventeen years old, but I don't expect this information to
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stick between his ears and I don't
expect him to get married at age nineteen,
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as several things of him. The
first step I wanted him to do
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as an eighteen year old is to
store this outline in a safe place and
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his computer and then revisit this information
when aged twenty one and twenty two,
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twenty three, when he gets started
getting too serious relationships with a young lady,
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so that he can review this material. Then it becomes more relevant because
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he's getting more serious about a relationship
with the long term and he can internalize
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and act on the strong recommendations we're
making. They come from my life experience
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and the experience of so many other
men and women that I've been in contact
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with over the years. All right, so he's kept a copy on his
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computer and we know the essence of
adult education is repetition. That's how adults
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learned. So by having a backup
copy on their computer they can go back
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and revisit and rediscover those key points. They'll mean different things to him at
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different stages of life. For sure. Shouldn't he also share the document with
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his betrothed? Absolutely, Bill.
I know he won't do it as an
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eighteen year old, but when he
becomes young twenties, when he gets involved
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with the significant person in his life, he should share what he has stored
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in his computer files with the young
lady so that she can examine him in
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the same fashion that he is hopefully
examined her, and they begin the search
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for commonality together, and when they
find it, they can look forward to
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a joyful, loving and spiritually enriching
marriage, blessed with happy children and a
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long, productive work life. Tim
It's been a wonderful journey being here alongside
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you for these five episodes of life
lessons from Grandpa, and I know you
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have a message that you'd like to
share with our listeners. First of all,
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I'd like to thank you, Bill
Lloyd, as the PODCASTER and editor
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and the wing men that I've had
as we've journeyed through these five podcasts.
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I hope you find this set of
podcasts and outline useful as you have conversations
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with your precious daughters and sons as
you guide them through these growing years into
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maturity. I've reviewed these comments at
five different lunches with my grandson's the podcasts
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and accompanying outline are geared to be
discussed with fifteen to eighteen year olds.
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However, some of these comments may
be way beyond the young man's ability to
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appreciate and understand. I requested my
grandsons to place this document in a permanent
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computer file so that when he is
older, he would hopefully look back at
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these ideas that he heard from grandpa
as a seventeen year old and that it
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would be useful for him to revisit
these lessons when he is in a serious
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relationship with a young lady. You
may wish to pass on these podcasts and
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outlines to family members and friends and
joy and may God bless you richly as
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you invest in your young ones as
maturity unfolds for them. Thank you.
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It's been an honor to share these
messages with you, Tim. The pleasure
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was all mine and I can't overstate
how much I've learned from this experience being
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part of life lessons with GRANDPA.
Thanks for joining us.
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Welcome back everyone, to life lessons
from GRANDPA. This is episode number five,
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our final episode. Tim. It's
called dollars and sense. I'm here
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00:00:20.629 --> 00:00:23.660
with Tim Lambert and I give us
an idea what we're going to talk about
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today. To Bill, it's a
great time to be talking about financial commonality,
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that that is, a commonality between
the boyfriend and the girlfriend who,
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perspectively, will become engaged. So
these items that we're going to discuss today
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a very important in that if there's
a failure in the marriage, there's a
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good chance it'll be because of finances. So pay attention to what we're going
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to talk about and hang onto your
hats as we go through this topic.
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Tim. For those who are familiar
with the PODCAST, you're aware that we've
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been relying on the theme of commonality
all the way back since episode number one,
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and we've applied it in so many
different domains, regarding family, regarding
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education, regarding career aspirations, regarding
faith. If there's alignment between the partners
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before marriage, then it stands to
reason that marriage will be stronger and more
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durable because the husband and the wife
are thinking a light, not in a
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robot way, but in an agreement
way, through understanding, through love,
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through compromise. They look at issues
in a similar way. So today we'll
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use our time again applying the tools
of commonality as a relate to family finances.
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Now, Tim before marriage, even
before engagement, individuals, couples have
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certain responsibilities, which you start us
off with, that before a couple enters
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into marriage, there are lots of
financial responsibilities that need to be fulfilled,
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some by the couple together and others
individually. It's so imperative that the young
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couple resolve all existing financial obligations as
soon as possible. We'd like to focus
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on the responsibilities that each of you
have. The first one we'd like to
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address is college debt. Is Their
College debt between either one of you and
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if so, this debt becomes a
burden to resolve, hopefully before marriage,
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so that you don't carry this backpack
into marriage and get rid of all the
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long term debt that you or she
may have. If it's not handled in
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imprompt and quick way, then it
will delay the opportunity of the two of
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you to purchase a home or invest
in your own business or other financial transactions
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that you need to handle. An
area that particularly concerning is credit card debt.
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How much of it are you care
hurrying at this time, before you
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even talk about committing to each other
and recognizing the fact that if you carry
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balances on credit cards, you are
no doubt mindful the interest charges that are
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made by the credit card company,
a huge as much as twenty or more
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percent on unpaid balances, and if
you are late in making at least a
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minimum payment, they will be an
extra burden of a late fee, which
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is significant, as well as a
day on your credit record, your credit
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reputation, something will be talking about
in just a little while. You are
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listening to life lessons from GRANDPA.
This is episode number five. Dollars and
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sense. And while we're talking about
credit card debt, at type of debt,
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we all have our utility bills,
tax bills, other types of loans,
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personal loans. You need to keep
current on all of those. A
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deep dive into each other's spending habits. is either one of you spending in
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uncontrolled fashion to either one of you
have access to your parents credit cards?
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Why is it important whether or not
the man or woman has access to their
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parents credit cards? If you have
an escape to spend your parents money.
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Then it's going to be hidden your
perspective. Soul mate will not know that
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you have a back door in a
way of uncontrolled spending on your part.
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Let me ask another question. You
spoke very eloquently about the threat of college
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debt and many new couples, both
the bride and the groom, are carrying
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educational debt. So what strategies would
you suggest to help these couples saddled with
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educational debt, college debt, so
that they can move forward with their plans
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for a family and for having a
house bill? I wouldn't suggest that college
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debt be a deal breaker between you
and your honey. There may be ways
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that you have conversations with the company
that you owe the money to, whether
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it's a federal government or private lending
interests, that you have conversations with those
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people either to get some of the
debt absolved or change the terms of the
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debt so that it minimizes the interest
costs or charges against the balances owing.
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Or there maybe some other's strategies that
a financial advisor could advise you as to
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how to deal with the college debt
or any other kind of debt you might
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have. Well you're absolutely right.
There's many different pathways to have your college
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debt recalculated, have the debt itself
consolidated and in many ways, to get
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that interest rate knocked down and make
things more manageable. If you simply reduce
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the payment and that's all you do, then all you're going to do is
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push that debt further into your marriage. So you'd want to find constructive solutions.
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What do you think about having the
children approached their parents for support in
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eliminating that college debt? Was a
wonderful idea. Bill. It could be
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that either set to parents would be
able to take on some of that debt
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themselves, depending on their financial circumstance, such as home equity loans or any
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other kind of low cost debt take
the burden off this young couple's back.
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It would be an amazing wedding gift
for sure. And remember the circumstances today
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may be quite different for your parents
then they were five years ago, seven
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years ago, when you were just
thinking about going to college, and perhaps
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their finances are in a better place
today and maybe they'd be willing to help
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you alleviate that educational debt now.
So we spoke about the couple, the
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him and the her, about these
finances? How about the individual the items
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that the young man or the young
woman have to consider regarding their own finances
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as they head towards marriage? It's
important for the couple to examine each other's
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financial practices before getting to the point
of engagement, such as both of them
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established checking accounts, savings accounts,
investment accounts, and they should educate each
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other and, it need be,
they should go to a financial resource person
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or the parents to be taught as
to how they've handled their checking, savings
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and investment accounts. This is life
lessons from GRANDPA. Another item that is
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very critical in examining each other's financial
practices is what happens so that paycheck that
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each of them get. Do they
spend everything out of that pay check for
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just living expenses? Beyond that,
they need to establish a savings plan so
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that they have a positive attitude about
saving some of that paycheck, putting it
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into savings accounts or joint savings accounts
and to maximize the company's for on k,
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to maximize the company match, so
that you're grabbing this free money,
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so to speak, for personal savings. That would be used at some future
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date, generally at retirement. The
sooner that couple can begin to set aside
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those retirement settings, the more it
will grow over thirty or forty years.
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An important lesson that we continue to
hammer the young people, who, you're
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right, often don't save enough.
What do you think about the philosophy of
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pay yourself first by automatically deducting a
portion of your monthly salary straights to savings,
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and then figure out how to get
by on the rest of it?
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Bill? You touch on something's going
to my brain just as you speak paying
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yourself first. My wife and I
always practice that from very early on in
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our marriage. Pay Yourself first.
It's incredible how multiplication of funds happens magically
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if you're disciplined. By way of
paying yourself first. A great concept.
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And don't forget the beauty of compounded
interest. Doesn't sound like much in the
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beginning if you're only getting a few
percent, but as those asset snowball in
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the years and decades ahead, you
will be very glad you set aside that
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money. You are listening to life
lessons from GRANDPA. This is episode number
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five. Dollars and since before you
start spending or saving money. Tim,
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I know there's the need for structure
and we call that a budget. Learn
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how to budget as a single person
and then you both should have that practice
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of a budget and as you come
to the point of matrimony, then you
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are accustomed to living within a budget
and then you'll automatically slide into a family
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budget. The sound advice is to
stick with the budget, including a percentage
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for savings. You know, the
young people are so technologically savvy and they'd
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be happy to know that there are
so many free apps available for their smartphones
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and that will assist them both in
budgeting and savings and will remind them when
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they're spending too much in a given
category or not paying enough attention to their
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savings. Interesting, their own bank
may offer these APPs as well, and
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the beauty of those are that these
programs are linked to their checking and savings
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that counts, so they see the
real numbers in real time and they can
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make smarter decisions that way. And
Tim as I understand it, there's an
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added bonus for the young Fella if
he has his finances in order. Now
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that the young man has his financial
house in order and he's ready to meet
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her father, he's going to be
ready to answer the very vital question that
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the fall the ought to ask him. Is Your Financial House in order,
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and please describe it. Think how
the perspective Fatherin Law will react when you
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tell him of your appreciation for prudent
financial management, when you ask for his
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precious to orders hand in marriage.
This is life lessons from GRANDPA. You're
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listening to episode number five. Dollars
and sense Tim were moving on to an
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important topic that eludes many young people. They don't hear about it until they
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get bad news from a potential borrower. And we're talking about credit worthiness and
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credit scores. Why do you lead
us off? Seeing your credit score can
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be frightening or it can be wonderful. Hmmm, it be wonderful if your
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credit score shows as excellent. Sure
so. You got to be very mindful
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of how your financial transactions occur.
Every move you make will be overseen by
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the three credit rating agencies and any
time you apply for Loane, car loan,
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person alone house loan, these transactions
are always interfaced with your credit score.
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And if you have been delinquent in
making payments to either a credit card
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company or utility bill or some other
kind of bill that is always recorded by
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the credit rating agencies. A merchant, a doctor's bill. There's many examples.
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Tim What happens with a bad credit
score is that you are charged more
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interest if indeed you approved for loan, and furthermore, you might even get
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a rejection, and that's also recorded
with the credit rating agencies. Oh,
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that sounds really interesting. I think
the listeners would want to learn just a
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little bit more about this. Beyond
that, prospective employers will check your FICO
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score. Fik Oh, is that
the same thing as your credit score?
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It is. It's the acronym for
I don't know what the acronym stands for.
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Well, here's a bonus for our
listeners here on life lessons with grandpap.
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The FCO score has been around him
since the S and it was established
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as a credit rating system by two
gentlemen, Bill Fair and his partner Earl
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Isaac, and they formed the fair
Isaac Corporation of the the S. and
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that's where fiiceo comes from. And
you're right, all of the great credit
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agencies rely on a Piko score and
if you have a FICO score that's under
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five hundred and ninety nobody. Let
me say it again, nobody is going
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to loan you any money, give
you a credit card or give you a
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chance to move on with your plans
to raise a family. So it's important
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to be aware of your FCO score
as soon as possible, repair it and
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then keep it as high as you
can keep it. Let's be clear to
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him. If a young man and
young women love each other, it's going
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to be very hard to break up
over their piko score. But fortunately there
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are pathways and resources that they can
use to repair bed credit. But then
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the burden is on them going forward
that both of them maintain that discipline to
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pay their bills on time and to
honor all of their financial commitments. Build
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there are ways around dealing with a
bad credit score, and that is to
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work with financial counselors who will help
heal the debt schedule that you have and
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attempt to improve your credit score up
and beyond the five night you just mentioned,
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so that your goal is to maintain
a high credit score and try to
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leap up towards the eight hundred plus
as the excellent category. So we just
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touched a moment ago on that issue
of transparency between the man and the woman
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we discussed previously. How it relates
to family health histories, behavioral health issues
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that we talked about, how it
places into career intentions, the desire to
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have one or more children, if
there's going to be a stay at home
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parent, again seeking commonality. How
does this apply regarding the finances as well?
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How is transparency essential for a young
couple? Bill, it's important for
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the couple to be very candid and
open with regard to their personal financial situation
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before engagement. By the way,
I caution the young people that they must
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be extremely zealous about pretentioning their pyco
score. It's a critical metric that people
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use as a gage of your personal
reputation. If you have a bad fico
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score, then look upon you as
a bad credit risk. So it's something
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definitely worth protecting now and in the
future. To I know you've got a
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few more important points for us regarding
the finances of young couples. Start us
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off with telling us about who's going
to wear those financial pants in the household.
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Practical experience and years of living as
shown me that typically one of the
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two becomes the financial manager, and
all too often the person who's not involved
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with the finances simply becomes ignorant about
day to day transactions that need to happen.
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And over time this attitude, so
to speak, of the one not
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involved becomes so ingrained in them that
in the event a difficulty happens in the
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life of the responsible person, that
is, death or disability, then the
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one remaining, who is otherwise competent, is left at see by way of
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not knowing anything about the couple's finances, of the families finances. So be
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prepared to always know what's going on
in your family's finances by way of knowing
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the checking account balances and the activity
that happens virtually daily in One's family finances.
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Sure also, when it's pre marriage
time, discuss your finances is deeply
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with your friend, before you get
engaged and before you marry. Certainly so.
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Everybody has a role, various roles, in a healthy marriage, and
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I think what you're saying is it's
not fair for one person to be handling
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all the financial matters and the other
partner abdicates, becomes very passive about it,
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actually maybe overjoyed at the notion if
they don't have to deal with writing
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the checks at night or doing them
online or keeping the book straight. They've
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got a partner to help them with
that. Aside from the issue of someday
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that responsible financial manager in that household
may die or disappear and leave the partner
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helpless, essentially helpless, even when
they're both healthy and well, it's essential
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that both partners remain actively engaged in
how the family finances are doing. How
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can they plan for the future if
they don't? How can they look forward
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to vacations or buying a better home
or moving to a different part of the
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country or other challenges that have deep
financial constraints, unless both of them are
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fully familiar with the facts? That's
the best advice you could give the couple.
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So it's important that the young people
who've been involved in these kind of
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conversations revisit this issue and all the
issues discussed in episodes one through five at
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a later date when they're in the
s and becoming involved with a young woman
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or young man then getting serious.
Please store these episodes in your computer files
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so that you can revisit these suggestions
that we've made as we've gone through these
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different episodes. This is life lessons
from GRANDPA. Now I'd like him speak
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clearly to the ladies who are going
to be involved in these matters in these
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episodes. The caution is that they
not involved themselves and fall in love with
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a guy who will not be a
good provider for you and your family.
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Well, let's dig a little deeper
here and for the young women who are
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concerned about their future husband, what
are some of these warnings that this fellow
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you're in love with May in fact
not be a good provider for the long
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haul? What would be some examples
that should alarm her? If this young
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guy does not seek out a job
opportunities, works part time here and there
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and pursues other self gratification activities that
have nothing to do with career work,
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steady employment, steady paychecks. If
this guy is not a contributor to the
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financial aspects of the household, you
walk away from that person. He's not
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good marriage material. Let me run
a few buy it. What about a
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spendthrift? What about someone who goes
out and buy as a flashy car but
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has an entry level job? Someone
who's dabbling in Bitcoin or someone who's building
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a rare, who knows what,
baseball card collection instead of putting money away
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every month for retirement savings. What
would you say about that bill? Those
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are all red lights. HMM,
red lights are to be avoided. You
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must seek out a different kind of
man who will provide for you and provide
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for your secure future. Well,
financial security is central to a joyful,
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happy, loving and enduring marriage.
We hear it all the time that financial
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concerns often shipwrecked marriages. What are
your views? There's an awful lot of
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stuff that's been written by different people
like Dave Ramsey, and he outlines.
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Are you handle financial affairs and come
to an agreement with your perspective spouse that
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you're going to study material Prut oubt
by reputable authors having to do with these
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financial affairs. Dave Ramsey, what
one says? Finances are the number one
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cause of divorces in American families.
Prepare Yourself, both of you, to
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read and understand the importance of providing
for a financially secure future. Think of
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it like a new pet, if
you will. You know if a couple
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brings a new puppy in the house, they're both going to want to cuddle
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and feed that dog. They're both
going to want to walk that dog,
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they're both going to take the dog
Ti dog obedience classes. Oh, it's
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going to be a great time.
They should approach their financial life during marriage
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much the same way, equally,
armed with good information, aligned and what
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their goals are and clear pathways to
help them at eave those goals. Like
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you said, education, whether it's
online courses, maybe local workshops. There's
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plenty of resources available to help you
with that. A couple who is knowledgeable
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about family finances and is committed to
taking the right steps can obviate what you
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call the number one cause of divorce
in America. If you can settle up
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on those finances, then you'll have
more time and energy and passion for the
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other more important issues that will fill
your day as a married couple well.
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Before we leave episode five today,
Tim and close out this podcast series,
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life lessons from Grandpa, I know
you have a final message for all of
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us. Yes, Bill, a
final message is some of this stuff that
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we've reviewed is really intended for a
later age. When I did this with
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my grandson he was seventeen years old, but I don't expect this information to
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stick between his ears and I don't
expect him to get married at age nineteen,
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as several things of him. The
first step I wanted him to do
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as an eighteen year old is to
store this outline in a safe place and
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his computer and then revisit this information
when aged twenty one and twenty two,
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twenty three, when he gets started
getting too serious relationships with a young lady,
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so that he can review this material. Then it becomes more relevant because
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he's getting more serious about a relationship
with the long term and he can internalize
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and act on the strong recommendations we're
making. They come from my life experience
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and the experience of so many other
men and women that I've been in contact
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with over the years. All right, so he's kept a copy on his
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computer and we know the essence of
adult education is repetition. That's how adults
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learned. So by having a backup
copy on their computer they can go back
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and revisit and rediscover those key points. They'll mean different things to him at
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different stages of life. For sure. Shouldn't he also share the document with
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his betrothed? Absolutely, Bill.
I know he won't do it as an
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eighteen year old, but when he
becomes young twenties, when he gets involved
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with the significant person in his life, he should share what he has stored
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in his computer files with the young
lady so that she can examine him in
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the same fashion that he is hopefully
examined her, and they begin the search
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for commonality together, and when they
find it, they can look forward to
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a joyful, loving and spiritually enriching
marriage, blessed with happy children and a
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long, productive work life. Tim
It's been a wonderful journey being here alongside
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you for these five episodes of life
lessons from Grandpa, and I know you
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have a message that you'd like to
share with our listeners. First of all,
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I'd like to thank you, Bill
Lloyd, as the PODCASTER and editor
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and the wing men that I've had
as we've journeyed through these five podcasts.
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I hope you find this set of
podcasts and outline useful as you have conversations
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with your precious daughters and sons as
you guide them through these growing years into
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maturity. I've reviewed these comments at
five different lunches with my grandson's the podcasts
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and accompanying outline are geared to be
discussed with fifteen to eighteen year olds.
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However, some of these comments may
be way beyond the young man's ability to
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appreciate and understand. I requested my
grandsons to place this document in a permanent
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computer file so that when he is
older, he would hopefully look back at
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these ideas that he heard from grandpa
as a seventeen year old and that it
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00:23:30.569 --> 00:23:34.049
would be useful for him to revisit
these lessons when he is in a serious
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relationship with a young lady. You
may wish to pass on these podcasts and
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outlines to family members and friends and
joy and may God bless you richly as
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you invest in your young ones as
maturity unfolds for them. Thank you.
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It's been an honor to share these
messages with you, Tim. The pleasure
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was all mine and I can't overstate
how much I've learned from this experience being
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part of life lessons with GRANDPA.
Thanks for joining us.
