"Beware of little expenses. A small leak will sink a great ship." - Benjamin Franklin

This week we talked about finances and money. The American Bar Association has indicated that 89% of all divorces can be traced to quarrels and accusations over money. Others have estimated that 75% of all divorces result from clashes over finances. Looking at this, doesn't it make you a little scared? Or even, why don't people know how to manage money properly? 

In class my professor was telling us about a study in America. Taking the traditional, stereotypical family (mom, dad, 2 kids) a professional account was asked to figure out their net income. The father makes $41,000 a year working 45 hours and the mother makes $21,000 working 35 hours. Because both the parents work, the children have to be sent to day care. Also, the couple is using more money on gas and eating out (since they have no time to cook). The wife is also making more purchases because she believes there is more money to spend. The accountant went through the numbers and found out that if the mother were to stop working and stay at home with the kids, they would actually be saving money. He calculated that their net income was $40, 500. That means that the wife is wasting 35 hours of her day and still losing money. But, if she watched the children instead of having them go to day care, and making more home meals, etc. The family would actually be able to make the fathers full $41,000.

Its crazy to think that this is happening to the average American family What we all need to do is sit down and make a budget. A budget helps you plan and evaluate your expenditures. It helps you to spend less, and save more.