How to make tracking your family living spending a top-drawer event - Elaine Froese | Canada’s Farm Whisperer | Your go-to expert for farm families who want better communication and conflict resolution to secure a successful farm transition


How to make tracking your family living spending a top-drawer event

by | Mar 10, 2022 | Farm Family, Grainews Articles, Wealth Management

A movie explores a young teenage girl, Amber Appleton living in a school bus and riding her bike to her 3 jobs while attending high school. I notice she is very careful to count her cash and write down all her expenses as she works towards saving to have a real apartment to call home.

When I first moved to Boissevain 43 years ago, fresh out of university and happy for my extension job with Manitoba Agriculture I spent $25 a month on groceries, $100 a month for rent, and bought a chest freezer with my first paycheque. It’s okay, you can call me weird. I tracked my expenses and saved heaps of money driving a government-issued car. It took only $100 to get all the basics of living for my apartment. Interest in my savings account in 1981 was 19%. “That was then and this is now!”

Family living costs are very different in 2022. Many farm families looking for family harmony are not happy with the shortfall of compensation to cover their family living costs, and with no wiggle room for emergencies. There is no cash to be set aside to service farm debt let alone personal debt.

I would like to challenge you to write a love letter to your spouse asking for a promise to get more clarity on what you are spending as a family. In farm families, this can be tricky when many expenses are covered by THE FARM, and you are not sure about where all the money flies because some people don’t like to keep track and just don’t think it is a big deal.

I am a Home Economist by degree. This means I really care about your quality of life and your attitudes about money. Keeping track of where your money goes helps you gain clarity and understanding. What you track gets measured, and what gets measured can be adapted.

I found a great podcast from the US about the economics of families living on farms. Just google “Two Economists and a Lender Podcast Farm Credit Services”. The quote that caught my attention was the call to make tracking living expenses a “top-drawer” activity, not something that gets stashed into the box and forgotten.

How can we make this simpler?

  1. Look at all your personal bank/credit union statements from 2021. You should be able to get a good look at where the money went, and what came in.
  2. Look at your personal credit card statements and learn from them. Folks that use credit cards tend to spend 34% more than those who use cash or debit. Don’t ask me where this stat comes from, it has just stuck over the years. I am trying to get rid of my Amazon prime expense. If you have payments that don’t make sense, get rid of pre-authorized payments.
  3. Go to the FCC site and download their new tool, the Cost-of-living Calculator. I buy our food with a credit card but make sure to pay off the monthly balance in full. Farm families need food, clothing, childcare, medical (dental, prescriptions, glasses), possibly child support. If you are only making $30,000 per year from your farm wage, then things are tight. I expect a family of four with school-age kids to need about $74,000 per year. You’ll hear all kinds of ranges on the Farm Credit podcast mentioned above. The University of Minnesota says $84,000 US per year. For our family of two, our number is $75,000, not counting charity, and it’s less this year with little travel. I pay for my gas.
  4. Wiggle room happens with gifts, entertainment, memberships, hobbies, sports, and education. These are flexible costs, but for some hockey is non-negotiable. This may be a $3000 expense that is hidden in credit card slips stashed in the pickup’s console.
  5. DEBT. Do you understand the difference between good debt (that makes you money) and bad debt? I am curious if you are maxing out your Tax-Free Savings Account: TFSA for short. Many young farmers don’t have any ability to save because they are not being compensated fairly on the farm, working for low wages with a “promise” for things to be better in the future, or a reduced asset buyout rate when the farm transitions. You need debt to be able to finance equity. You do want equity, don’t you? Personal credit cards that are not zeroed every month attract huge interest, and the debt hole gets bigger and the stress looms. What is your plan to zero your personal debt or line of credit? Google Dave Ramsey, Financial Peace University.
  6. Insurance. You need this for your life to protect your spouse and young children. Your house and, property, mortgage, health, and disability. Use a trusted insurance broker who understands your unique situation.
  7. The truck. Ah, the $54,000 pickup, fully-loaded that you really “deserve”. You might notice a tone here that makes you feel judged. I am not judging, I am just curious how a fancy half-ton makes you money. Would you be better off letting someone else walk away with all that vehicle depreciation by starting out with a used vehicle? I know SUVs are great on snow, I own one, but what about 3 car seats in the back of a truck that is fully paid for? Trucks and cars need insurance, fuel, loan payments, and repairs. Maybe part of your compensation is free access to the farm gas tank and a farm truck. Please go to my contact page and ask me for Dick Wittman’s compensation worksheets. This tool will help you get a better handle on the value of “farm perks” you are getting.
  8. Legal fees. Getting divorced is expensive. I am being asked for financial referrals to navigate the end of a marriage. Many families are fighting about unfairness, poor wages, lack of planning for the future. Start with a budget to pay a lawyer for a well-written will to protect you and your family, and name guardians for your children. Make sure you have an enduring power of attorney that is activated while you are living. I do not give legal advice; I send farm couples to lawyers. I am shocked that high net-worth farmers think nothing of “do it yourself” legal documents. DO NOT DO THIS! Book an appointment today!


I highly recommend Bruce Sellery’s book “Why Smart People do Dumb Things with Their Money”. I am glad to refer you to a financial planner. Invite your friends signed up for my insights here.

Did you enjoy How to make tracking your family living spending a top-drawer event? You might want to check these articles out too:

Being Smart with Your Personal Wealth Bubble
Someday is not a day on my calendar

Follow Elaine on Social for More Helpful Farm Family Advice!

1 Comment

  1. George Malmstrom

    Well said Elaine. I can count on all 10 fingers the number of situations I have seen where people don’t open their mail from insurance companies. It makes you wonder how they look after everything else. A friend of mine recalls a client meeting where the unopened mail included insurance cheques that were stale dated. Financial advisors & insurance representatives are able to help people & families with their finances. We have ongoing training for this. The clients’ needs come first!


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