Two concepts that Money & ME teaches are the “Cash Envelope System” and “Self Discipline.”
The Cash Envelope System is simple, practical, and effective. In an article, The History of Envelope Budgeting, “mentions that household budgets in news reports started to pick up at the turn of the 20th century. Whoever first stuck their money into an envelope to help budget is unknown, but it was still a fresh idea a century ago in New York City. The Evening World of New York ran a thrift campaign over the first half of 1916 asking people for their common sense savings plan. A respondent began her plan with this: ‘Like most of your correspondents I, too, divide my money systematically – putting aside in envelopes money for my various expenses. Without some such system saving is practically impossible – what you save in one instance flows out unnecessarily in some other way.”
Money & ME talks about saving and the importance of saving for special purchases. Participants can make a Christmas envelope and set aside money each month so they will have some at Christmas.
The other concept Money & ME teaches is self-discipline. The participants practice saying no to themselves and others when their envelope is empty. They write the word “no” on the inside of the envelope as an experiential activity to help reinforce the self discipline needed to stick to a budget. The Wall Street Journal wrote an article “The Key to Financial Discipline? It May be as Simple as Taking a Class.” Click to read this great article.
Money & ME wishes all of you a Merry Christmas and a Happy New Year. May you stick to your budget and help others as well this holiday season!