Q&A: How can support groups help you manage your money?

Support groups are becoming more common for people who have trouble managing their money, says Mainstreet P.E.I. frugal columnist Liz MacKay.

Frugal columnist Liz MacKay says it helps to know you're not alone

CBC News · Posted: Apr 30, 2018 7:00 PM EDT | Last Updated: April 30, 2018

Support groups to help with money management are becoming more popular says Mainstreet P.E.I. frugal columnist Liz MacKay. (Graeme Roy/The Canadian Press)

Most people have heard of support groups for those with different illnesses, for weight loss and for parents.

And now, support groups are becoming more common for people who have trouble managing their money, says Mainstreet P.E.I. frugal columnist Liz MacKay.

She suggests checking social media to find budgeting support groups to join, or start your own — kind of like a book club. She suggests starting small, with about four or five couples or six or seven individuals, a moderator and a presenter.

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Here is more from her conversation with Mainstreet P.E.I host Angela Walker.

Why join a budgeting support group?

MacKay said like any support group, it helps to simply know that you're not alone.

"Sometimes people just need to do this because they're scared of the commitment of doing it … it's something you can procrastinate — 'I'll make my budget next week and next week' — but if you're accountable to someone, then you can get that habit forming."

Mainstreet P.E.I. frugal columnist Liz MacKay says in order to benefit from a budgeting support group, you have to be willing to change. (Angela Walker/CBC)

What will you learn?

Things like different ways to manage your month-to-month expenses, using budgeting software, how to create an emergency fund or, MacKay said, just how to reduce spending in a certain area.

In order for it to work, however, you need to be in the right mindset.

"You have to want to change," she said.

How often are the meetings?

MacKay said it depends on the group. Groups often meet once a week at the start.

"Once the education has been taught and goals are being managed, the time can start to lengthen out between meetings."

Do I have to share my financial information?

That's up to you, MacKay said. Not everyone shares.

"You don't want someone sitting there thinking, 'Boy, you make that much money, how could you possibly be having problems?'"

Is it good for marriages?

Given that money can be a stress on many marriages, couples can definitely benefit, MacKay said.

There can also be surprises, she discovered in one support group she led.

"It was interesting because the two people in the relationship, one of them had no idea — 'We spend that much?' And so it was very eye-opening and they learned to work together."