Total Money Makeover Book Club leads to debt paydown and building savings

Published: 2020
By Kari Lewis

Living paycheck to paycheck is the norm for 70% of Americans. The Total Money Makeover book club provided an opportunity to discuss paying off debt, saving for emergencies and retirement, and living on a monthly budget to help shift from the paycheck to paycheck mode. A $750 Montana Financial Education Coalition grant provided the books and incentives for the class. The class included an in-person and virtual option with 23 participants from nine Montana cities. Both classes participated in a Facebook group, breakout discussions, and extra weekly challenges to encourage interaction. Participants noted that as a result of the class, they had started using a budget which allowed them to consistently put more into savings, had established their emergency funds and planned to sell their financed cars to jump start their debt snowball and buy cars with cash, and were using cash versus cards more to minimize spending. One participant noted that because of class and working together on a budget with her husband, communication within their marriage improved as well. Another participant realized that by using a budget, she could be debt free within just a few months when previously she thought the process was unattainable. One student consolidated their credit card debt, resulting in a savings of $5,000 per year for the next five years! The average participant paid off $2,250 in debt, cut up two credit cards, and saved $750 towards their emergency fund or retirement throughout the six-week class.