I remember as a kid growing up in a conservative Kansas farm family we always paid for our purchases with cash or a check. My first experience with establishing credit was at age 15 when I made three equal payments to the company I bought my new Singer sewing machine from. No interest was added; it was just a way to show my responsibility to pay a bill in full. I still like to wait until I have the money in hand before making a sizable purchase. 

It just feels right.

For many families, credit is a tool used to accomplish their short- and long-term goals. When managed successfully, a home mortgage, car or student loan, and credit card account can bring many benefits, such as home ownership, a college education, or landing the job of your dreams. Poor management of credit can result in higher costs, lost opportunities, and added stress.

If you listen to radio talk shows like Dave Ramsey, you have probably memorized his words of advice to live within your means. If you don’t have the money to make a large purchase, then take baby steps to save up the money before signing on the dotted line. Getting spending under control is a matter of understanding the difference between needs and wants, setting financial goals, and following a spending plan or budget. 

Since it is early in the year, I consider it the perfect time to get a handle on your finances. I have an excellent set of materials to help you get started with setting up a budget for your household. One of my favorite handouts is titled, “Does Your Money Have Wings?” The handout encourages participants to mark the items they use on a regular basis and add up the cost for a year. Things like purchasing expensive snacks/drinks often, tobacco use, cell phone or TV/internet plans can be costlier than you realize. If you find out your daily soda adds up to over $500 in a year’s time, you might want to think about what else your family needs that could have been purchased.

Let me hear from you if you are ready to take a closer look at your spending. I’ll be happy to share the “Does Your Money Have Wings” handout with you!

Donna Krug is the Family & Consumer Science Agent with K-State Research and Extension – Cottonwood District. Contact her at 620-793-1910 or dkrug@ksu.edu.