It’s tough enough to balance a family budget when incomes are unpredictable. But when one spouse leans toward saving and the other splurges on luxury items, even couples with healthy take‑home pay can find themselves at odds.
That was the dilemma faced by Taylor, a New Orleans dad of three, who called into The Ramsey Show. He claimed his wife racks up roughly $5,000 in credit card charges each month.
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Taylor’s household runs most expenses on credit cards and pays the balance in full every month, but that hasn’t quelled his anxiety.
He typically spends $2,500 to $3,000 on his card each month for bills and necessities, while his wife’s charges push past $5,000 on things like children’s clothes and “fun” purchases.
Their sole recurring non‑credit debt is the mortgage, which drafts automatically from their joint checking account.
Because Taylor works on commission, his take‑home pay can swing dramatically, from as low as $6,500 in down months to over $20,000 when sales spike.
Here’s what the hosts had to say about their situation.
Cutting the credit cards
The Ramsey Show co-hosts Ken Coleman and Jade Warshaw advised that credit cards remove natural spending boundaries. With cash, when it’s gone, it’s gone — plastic tempts consumers to push past what they can genuinely afford.
“ I’m always gonna tell people to cut up their credit cards, but for you guys, it’s like a no-brainer. I feel like in many ways it’s just creating more chaos around the subject of money, and it’s creating a free-for-all because I don’t know what the limit is on these credit cards,” Warshaw told Taylor.
Beyond the emotional stress it triggers in households like Taylor’s, relying heavily on credit cards carries real financial risk.
Revolving balances often come with APRs north of 20%, meaning routine purchases can quickly morph into long‑term debt burdens.
Hidden fees — such as late‑payment charges or over‑limit penalties — can accumulate even when cardholders pay off their balances most months.
And when utilization rates climb, credit score volatility becomes a serious concern, potentially driving up borrowing costs on mortgages, auto loans and other forms of credit.
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Crafting a family budget from scratch
According to a 2023 Credit.com survey, 27% of Americans don’t think a budget is necessary. Meanwhile, a recent Laurel Road survey found that just 46% of couples discuss their budgets with each other at least weekly.
At its core, crafting a family budget from scratch means assigning every dollar a purpose before the month begins. It’s about transparency, shared responsibility and agreeing on financial priorities.
Taylor and his wife could start mapping out a detailed budgeting plan by:
Determining true income: Average the lowest three months of take‑home pay to set a conservative baseline.
Listing fixed and necessary expenses: Include mortgage, utilities, childcare and insurance — then pad each by 5% to 10% for unexpected costs.
Allocating “fun money”: Give each spouse a cash‑only allowance for discretionary spending to prevent surprise credit card charges.
Prioritizing savings goals: Treat emergency‑fund contributions and retirement deposits like nonnegotiable bills. Taylor could redirect at least $2,000 of his wife’s typical credit card spend toward savings or investments.
Reviewing together weekly: A quick five minute check‑in helps spot overages early and keeps both partners aligned.
Beyond these steps, automating transfers into savings accounts the day after payday also reduces the temptation to spend “what’s left.”
Taylor’s call underscored the need for shared values around money. As the hosts noted, budgeting isn’t merely about tracking dollars; it’s a conversation about what matters most.
By agreeing on clear spending limits, this New Orleans family can move from financial friction to teamwork — and finally hit that “happy medium.”
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
