Nonfiction Book Reviews

Fun Friday - The Weekly Review of Children’s Books

I originally picked up A Smart Girl’s Guide to Money: How to Make It, Save It, and Spend It by Nancy Holyoke and Ali Douglass because my niece (hi Hailey!) had checked it out, and I saw it when she returned it. I figured I had read plenty of guides on how to manage money as an adult - it was time to check out what the kids were being taught.

Again, I was surprised at how knowledge-packed the book turned out to be.  Perhaps I’m just not expecting enough out of children’s books, I don’t know, but so far I’ve been pleasantly surprised by the depth of the information given.

In A Smart Girl’s Guide to Money, American Girl teaches the whole cycle of money - it gives a list of 101 ways to make money (selling items or providing a variety of services) and also how to figure out if the business venture is profitable or not by doing a cost analysis.  It even talks about keeping a ledger and staying on a budget.  If there was a girl out there who read this book and took it to heart, she’d be a miniature Donald Trump (but hopefully with better hair!) by age 25.

The book also tackles sticky subjects from how to ask for an allowance raise, to recognizing and reigning in the impulse buying while at the mall.  It even touches ever so briefly on putting money into the stock market and paying taxes on what you earn.  (I told you I was shocked at how much was in here).

Yet it still managed to stay very readable and interesting to the average tweener (10 - 14 year old range).  It had lots of great drawings and quite a few multiple choice quizzes.

So comes the question: Would a boy read it?  No, I would say probably not - too many references to buying nail polish and new clothes at the mall, not to mention the fact that all of the drawings are of girls.  I haven’t looked to see, but I would hope something similar but aimed for the boy population has been produced, because it really did break down money management into children-sized pieces.

If your daughter wants to make money this summer, or if you’ve noticed that she tends to spend her money too freely and you’re hoping to give her a little direction, this would be an awesome book to get for her.  I honestly can’t think of anything critical or negative to say about it.

Warning: Childless adult is about to give out parenting advice - ignore at will!!

If I had a daughter, I would give her this book when starting her allowance, so she could be pointed in the right direction on how to handle her money, instead of just being handed money each week.  I was a pretty open spender as a child - I once spent $50 on candy and had a stomachache for a week.  I really could’ve used this book as a kid.

Overall, I give A Smart Girl’s Guide to Money 4.75 out of 5.

Hava

Dave Ramsey is one of those guys who a person either loves or hates. He tends to inspire pretty dramatic feelings both ways. Luckily for him, the majority of America seems to love him.

The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey was the first book that I ever read by Ramsey, and it was such an inspiration to me, that I instantly joined the Ramsey Fan Camp. I was struggling with some pretty large debts at that point (at least large in comparison to my income!) and I was barely keeping my head above water. I was told to read The Total Money Makeover - that it would help me. They were right.

I wish I could say that because of this book, I made major life changes and became debt free, but instead I just got a little better at juggling.  Eventually my husband and I were able to move and get into a better situation, to where we are now debt free. But the problem before was not Ramsey - it was me. Ramsey actually sums it up pretty well on page 4:

Winning at money is 80% behavior and 20% head knowledge. What we do isn’t the problem; doing it is. Most of us know what to do, but we just don’t do it. If I can control the guy in the mirror, I can be skinny and rich. We will let other books work on the skinny, and I will help you with the rich part. No, there are no secrets, and yes, this will be very hard. Hey, if it was easy, every moron walking would be wealthy.

If that kind of bluntness appeals to you, you’ll love this book.

The baby steps that Ramsey gives to get out of debt and stay there are the following (in order!):

1) Save up a baby emergency fund: $1,000.
2) Snowball your debts (a focused way of paying off your debts)
3) Finish your emergency fund: Save 3 - 6 months of expenses
4) Invest 15% of your income into a retirement fund
5) Save for your kid’s college fund (if you have children)
6) Pay off your mortgage on your home
7) Build wealth

My problem previously had been saving the $1000 baby emergency fund. When your bank account is perilously close to zero, it’s hard to fathom having $1000 in your savings account, waiting for a rainy day.  He talks about how to save the $1000 and gives some inspirational stories from people who did, so again, that was me, not him.

Okay, so onto my critiques (you knew it was coming!) As I said in Financial Peace, Ramsey is a Christian who quotes the Bible fairly regularly to make his point. If you’re not Christian, do keep that in mind. It isn’t overwhelming, but it is there.

Secondly, it has been said that Ramsey is too conservative when it comes to savings, but overly liberal when it comes to retirement numbers. I would have to agree with that. He says that you can afford to put your savings for retirement on hold until after you’ve paid off all your debts, plus saved a 3 - 6 month emergency fund, by being very generous when it comes to his estimates on a “normal” return on investments. I don’t agree that you ought to expect a 12% rate of return every year on your stocks. Yeah, it would be nice, but hardly likely. Ramsey’s great for advice on getting out of debt, but I would pick someone else to get investment advice from.

These shortcomings aside, this is a very inspirational book - it’s liberally dosed with stories from couples who have worked through debt and came out the other side debt-free and liberated. Reading stories of these “gazelle intense” couples makes you want to stand up and yell, “I can do this too!” I think this is the monetary equivalent of No Plot? No Problem by Chris Baty - Dave Ramsey makes you truly believe in yourself.

I give it 4.5 out of 5 stars. Yeah, he has his shortcomings, but overall, this is just a darn good book.

Hava

Photo Credit: Scol22

In the cheapskate community, Amy Dacyczyn reigns supreme. And it’s not hard to see why, when you flip through her books.

Amy originally started out by producing a newsletter with tips she thought were helpful. She eventually put those tips into books, and produced three amazing books that every tightwad in the country owns (bought off eBay at a discounted price, of course). They are (originality in naming not being her strong suit) The Tightwad Gazette I, The Tightwad Gazette II, and (drumroll please!) The Tightwad Gazette III. I know, you didn’t see it coming, did you? Neither did I.

Lack of originality aside, there is little here to criticize. Seriously. This is the frugal person’s Bible. Too often, a “how-to-be-frugal” book will simply regurgitate the same tips over and over again. (Great example here. Or here’s another one that did it too, although not to the same extent.) How many times can people say, “Save up money and pay cash for big items” before publishers start to say, “Wait a minute, I think this has been covered before”?

Apparently a lot.

Amy stands at the pinnacle of frugalness for a very good reason: None of her “tips” are recycled stuff that someone slapped together from an hour of Googling. Amy never takes the easy way out by saying, “I’ve heard that it’s cheaper to…”

Instead, she sits down with a calculator and figures out, down to the penny, how much something will cost. And then she does it again the other way. Math is not my strong suit, so she completely lost me when it came to some of her calculations, but I was mightily impressed by her conclusions.

Here’s an excerpt on freezing food in bulk that illustrates that point nicely:

The first step was purchasing a humongous, $7.99, 2,000 foot-roll of 12-inch-wide clear plastic wrap from a warehouse store. One could make the argument that free bread bags are cheaper, but this wrap costs just 4/10ths of a cent per foot and allows a stretched-tight wrap that gives good protections from freezer burn. If this quantity is too much for you, we found that store-brand plastic wraps are 6/10ths of a cent. (But be aware that name-brand wrap costs as much as 2 and 3/10ths of a cent per foot.)

Am I just the laziest person alive? I never, no never, would have thought to calculate something like that down to the tenth of a penny.  She does this constantly.  Reading her books is like peering into the mind of a frugal genius, truly.

If you’re really observant (as are all of my readers, naturally) you might have noticed that I reviewed book #3 first.  I did that to make the point that you don’t have to read these books in order.  She does refer back to stories in previous books occasionally, but she always makes sure to give enough of the backstory that you’re not lost.

My only gripe (boring name aside) is that there isn’t anything more to read.  Amy Dacyczyn has retired, and is no longer producing newsletters, books, or even a simple blog. Others have tried to fill the gap by producing their own books and blogs, but none of them are as good as The Frugal Zealot.

Amy, we miss ya.

5 out of 5 stars

Hava

I picked up Living Well on a Shoestring: 1,501 Ingenious Ways to Spend Less and Have More by Yankee Magazine on a whim.  I tend to like “how to live thrifty” books, and am always looking for a new money saving tip.  I’ve already reviewed America’s Cheapest Family and I have several similar books in the queue.

Well, this thrifty living book left me with mixed feelings.  I would read an entire section where there wasn’t a single new idea that I hadn’t heard before, and then the next section I would read a tip or two that I think, “Well, I wouldn’t necessarily do that myself, but at least it is new idea.”  Overall, there just wasn’t much originality to the book.

Then there was a tip that was completely and utterly wrong.  It was in the getting-out-of-debt section, and it advised the following:

Do you have a credit card that has gotten out of hand, and you have to struggle to pay even the minimum balance every month?  Do yourself a favor: Cancel the card immediately.  That way, you can’t make new charges while you’re getting the balance under control. Living Well, page 28

Warning!  Warning!  Warning!  Do NOT, any ANY circumstances, follow the above advice!  Once you cancel a card, the credit card company has exactly zero reasons to work with you.  It makes your credit report look even worse than it already is, and your credit score will drop.  Your interest rate will likely zoom up into the stratosphere because, again, the credit card company has no reason not to twerk you off.  In fact, they’ll kinda want to because they want that money back so they can lend that money out to other people who will borrow it over and over again.  You, however, are officially no fun: You’re never going to borrow anymore money from them.  Why play nice?

So that part made the hairs on the back of my neck stand up.  Then there was the section about saving money, where the tip was to assign each household chore a specific monetary value that you would’ve had to pay a housecleaner in order for it to be done, and then pay yourself that amount.  No, wait: It gets even better.  They said to put the money in a savings account instead of spending it - that way, you’ll have a nice fat savings account, and a clean house!

Yeah…Not so much.  If I could afford to pay a cleaning woman to clean my house A) I would and B) Why would I be reading this book?  And even if I did, do you honestly think I’d have the self control to clean my house, give myself money for cleaning, and then not spend that money?  Not a chance, Sunshine, not a chance.  But it wasn’t just cleaning the house - they suggested doing the same thing for mowing your lawn, repairing household appliances, and other chores like that.  I wasn’t impressed.

There were a few ideas scattered in there that I hadn’t heard before, but overall, it was a recycling of the same generic tips you hear everywhere, not to mention a few tips that completely led you astray, and more tips than I care to think about that just left me scratching my head.

I just can’t give Living Well higher than 2.75 out of 5 stars.  It was a disappointment - there are better books out there on this subject.  I’ll be reviewing a favorite of mine, The Tightwad Gazette, later on.  Watch for that.

Havs

PS Looking for some thrifty tips?  Be sure to visit A Frugal Mom here at Today - she’s got a great blog packed with good ideas.

America’s Cheapest Family Gets You Right on the Money by Steven and Annette Economides is a good book to pick up if you’re looking for inspiration on how to live cheaply but well.  The Economides (yes, that really is their last name!) are cheapskates, and proud of it.  Yet they come across as being fairly normal, if a bit over-organized.  They go grocery shopping once a month, period.  No, they don’t even go by to “pick up the milk” or “grab a loaf of bread.”  They buy gallons of milk, pour a little off the top, and freeze it.  They buy bread by the bagful, and freeze those too.  I don’t think I’ll ever be as organized as they are. Ever.

They produce a bimonthly newsletter, The HomeEconomiser, which is where the bulk of the information for the book came from.  I haven’t subscribed to that newsletter, so I can’t say myself that it’s a good idea to sign up for it, but if it’s anything like the book, I would think it would be worth the while, especially if you need ongoing support to keep your focus on your goal of living below your means (or at least paying off your debt).

But still, it was an interesting book, and had quite a few good suggestions on how to tighten your belt.  A lot of it was the same that you’d hear in other tightwad books (shop with coupons, don’t buy on impulse, shop around for the best deal, etc - standard fare for financial books like this) but there were some real nuggets of helpful information buried in there.  The most interesting part to me was seeing how the family as a whole operated.  There is a picture on the front of the whole family, and their input is scattered throughout from the kids.  The parents, of course, are the authors.  Many of the financial books out there come from the mother’s point of view (I’m not sure why that is - perhaps because the moms are trying to stay home and raise the kids, so they’re the ones who have the time to streeeeetch their money as far as it can go…?) so it was fun to read this one that was basically from the everyone’s point of view.

If you’re new to saving money and trying to live below your means, this might be a good book to pick up, for a broad overview of how to do be a better tightwad. If you’ve already read every book out there on saving money and making every penny count, there probably won’t be enough new stuff in here to make it worth the read.

And if you’re on the hunt for budgeting or finance tips, we’ve got several great websites here at Today.com that cover that subject: Counting Pennies and Frugal Living.  Be sure to check them out!

I give America’s Cheapest Family 4 out of 5 stars.

Havs