| I hope you know that I immediately thought of you when I read that Axios article you sent me about keeping financial secrets from your spouse. |
| Why me? I sent it to you because the survey supports my position that people in serious relationships should exchange credit reports so that there are no surprises. Not to mention, they need to be open and honest about money. |
| Well, it reminded me of how you told me about lying to your husband when you blew your Ferrari engine. It was years ago, but I’ll never forget it. In fact, I still laugh and shake my head in amazement. |
| You really do need to get a life. |
| Admit it, there aren’t too many people that have “replace Ferrari engine” as a line item on their credit card bill or monthly budget. |
|
Well, it was not a planned expenditure. Although when the engine blew on the
racetrack, I was prepared in terms of knowing where to safely pull over and quickly
exit the car. |
| Of course, you were. But, at what point did you decide to lie to your husband about the cost of the engine? I still don’t know how much that engine cost, but he could easily afford to replace it. He was already paying for you to race Ferraris. So, why did you choose to pay for half of it yourself? |
| Trust me, even half was a big number. And, the 360 Ferrari Challenge had one of the best V-8 engines they ever made. |
| You’re avoiding the question. |
| When we got married, he made sure to keep all our assets totally separate. He knew I had some money of my own, although nothing on the magnitude of his, so it was not like I was hiding money. My racing was already costing him so much, so I thought paying half was the least I could do. |
| But did you tell him that, or just lead him to believe that his “half” was the “full” amount? |
| What difference does it make? |
| Is there a reason you didn’t want him to know you were trying to be considerate? Especially because when I went through my crisis, you always talked about the importance of having open and honest communication, especially about money. |
| I still feel that way, but a conversation requires more than one person. Since I handled most of his money for him, including the interface with his wealth managers and tax accountants, he made it very clear there was nothing more to discuss. And, any time I tried to bring up the topic of money, he would cut me off and just say, “Everything’s great.” |
| Well, it was. At least financially. |
| Yes, if you only look at the numbers. But, we had very different attitudes toward money, and that was something he would not discuss. Many people, regardless of financial status, are not comfortable talking about money. |
| I know my natural tendency is to avoid what I perceive as difficult conversations, which definitely includes money, but surely not everyone feels the way I do. |
| Initially, did you avoid financial conversations because you felt intimidated and confused, or because you were trying to avoid conflict? |
| Back then, both. Now that I have a better understanding of money, it’s just an awkward topic. Especially since most people don’t talk, they argue, about it. |
| Or, keep secrets or avoid the topic entirely. Which may seem “helpful” in the short term but are not long-term solutions. |
| Says the woman who ultimately got divorced. So, tell me, if you had to do it over again, would you have handled the situation with the Ferrari engine any differently? |
| Hindsight should be 20-20. Looking back, there were probably things I could have done to avoid blowing the engine. |
Every time we see the photo above of our "guinea pigs", it brings back such fond memories. You may be thinking, "What? Are they calling those students guinea pigs?!" Well, actually, yes. And before you think ill of us, please know that we use the term with great affection, deep gratitude, and utmost respect. And these eight amazing seniors from the Class of 2010 know that's our nickname for them because ...
We started calling them our "Guinea Pigs" as soon as they volunteered to help us develop our Red & Black Personal Finance and Life 101 program at KIPP Houston High School. It was important that they knew this was truly an “experiment”, as neither one of us was a teacher or a financial expert.
It all started at our first speaking engagement, when during Q&A a woman asked why the topics in our book weren’t taught in school. The next thing we knew, we were sitting in the office of Bryan Contreras, Director of KIPP Through College, and being asked not only to develop, but also to teach, a semester-long personal finance and Life 101 course to their high school seniors. During their spring semester. (Yes, the months right before they graduate.) While Red looked like a deer in headlights (we barely considered ourselves authors, let alone teachers), Black responded as she often does, with a simple:
Sure, not a problem.
While Red went home to carpool and baking cookies, Black did what she does best — use her corporate and business experience to tackle the challenge. So, she requested a "task force" of seniors to help us develop the curriculum because, as she put it:
If it is not relevant, why bother? And, who knows best what is relevant to high school seniors? High school seniors.
Black introduced them to the business concept of a working lunch (which might also be considered a pizza bribe), and we met for five Fridays. We gave them a list of select book excerpts they were expected to read each week so we could discuss what they thought should be included in the curriculum. That first week, they seemed motivated to help — but we weren't sure what to expect.
They came back excited and totally committed, with two of them having read the entire book and the rest having read much more than the assigned excerpts. Luckily, Red had been a straight-A, copious note-taking student. However, she could barely keep up with their comments and feedback, let alone the side discussions generated by the conversations in our book. You could see their interest in personal finance (and many other Life 101 topics) was strong and genuine, and they explained that learning from the mistakes of others was extremely powerful. One student, after prefacing his comment with apologies, stated:
When I grow up, I don't want to be Red.
We'll always be indebted to our Guinea Pigs for their enthusiasm and suggestions, as using our book as the textbook was their idea, not ours. And through their feedback on the book and the lessons they were already learning from it, which began at those pizza lunches, the answer to how best to "teach" a Red & Black class was obvious to them. It was as simple as a book club. For us, it took a little longer to come to that realization as we were hampered by our own preconceived notions about how lessons are taught in a classroom. So, although the initial intent may have been for us to be the teachers and them to be the students... we learned from each other.
P.S. – For those of you interested in a more "educational" look at our detour into the world of education, including "feedback" (student quotes, Black's "non-scientific" surveys, and KIPP press releases) from our two spring semesters when we "taught" at KIPP Houston High School, please check out An Unexpected Education Detour ...
Red loves to stop and reminisce. Black prefers to look forward.
But even Black will admit that sometimes there’s value in looking back — it reminds us where we came from, the detours and roadblocks we have managed to navigate, and that we may be stronger and more capable than we give ourselves credit for. Sometimes, it’s a lesson learned. Sometimes, it’s a memory that reminds us what’s truly important.
But Black has one caveat (and it's one of her favorite car analogies) …
If you decide to look back, keep it in perspective. There's a reason why windshields are so much larger than rearview mirrors.
| The last few days have been beautiful fall weather, and I can't help but wonder — do you ever miss having your Ferrari convertible? |
| Although some days are perfect convertible weather, given that I barely drove it the last few years I owned it, averaging less than 50 miles a year, I can honestly say, "No." In fact, I cannot even remember the last time I drove it. |
| I can't help you with that, but I'll never forget the last day we taught at KIPP Houston High School, and you drove it there. You should have seen the students' faces as you were lowering the top on it. |
| Funny thing is, I never took the car to KIPP because I did not want anyone to think I was showing off, but I forgot how exciting it is for motorheads to see special cars — whether new or vintage. |
| I doubt everyone crowding around your car was a motorhead, but they certainly were excited to see it. Boys AND girls! At the risk of sounding warm and fuzzy, I think the fact you not only drove a Ferrari, but also raced them, gave the girls a feeling of empowerment that they really can do anything. |
| I guess because I always worked in male-dominated industries, I got used to being the "token" woman. Regardless, I never look at things as being gender-specific. |
| That's because you never look at anything like the rest of the world does, or at least most people do. A perfect example of that is you giving Juan a ride in the Ferrari. I doubt many people would have done that. |
| It seemed only fair since he tried to make a "deal" with me the day before — a hand of poker or even a flip of a coin. If he wins, he gets a ride in the Ferrari. If I win, he will be my slave for a day. Giving him a ride in the car was a reward for having the chutzpah to try to make a deal with me. And, in the two years we taught at KIPP, of the over 200 students who took our Personal Finance & Life 101 class, he was the only one ever to do that. |
| I'll never forget how you also told them that although it may not be the proper definition for the Yiddish word "chutzpah," the real-life definition is "having balls." |
| How else would you explain it? |
| You should know, as many people have used that word to describe you. And it was consistent with the lesson we taught them about how you "confronted" Bob Weinstein (of the movie-producing Weinstein Brothers) at a conference in New York. (Granted, it was well before the #MeToo scandal.) You realized you had nothing to lose, not to mention you were well prepared. |
| In most scenarios, if you do not ask for something, you will not receive it. So, what is the risk of asking? Someone may say "no"? The way I see it, you are no worse off than before you asked. So, in reality, there is no downside risk, but there IS upside potential. They may say "yes." |
| True. And I laughed, although I wasn't surprised when everyone else started asking for a ride in the Ferrari! |
| Except Juan did not just ask for a ride. He tried to negotiate a deal. He structured it so that there was an upside for me if he lost the bet, which obviously would be the downside for him. But, what impressed me the most was that he was proactive and took a chance, albeit a long shot, to get something he wanted. |
| And given the smile on his face when you drove off, it obviously paid off. I bet, even though it has been many years, it's something he's never forgotten. |
| The lesson or the ride in the Ferrari? |
| Both. And I will go out on a limb and say I bet many of the kids standing around the car when you told Juan to jump in, and then explained why, may also remember not only that day but the importance of the lesson. |
| Then, it was a perfect day for a convertible ride. |
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