I like TG’s plan too. It gives you a real visual for how much money you have (or don’t have). We did something like that when my first child was born when we went from 2 incomes to 1.It was really helpful. I’m not sure that my friend would buy into it though, I think she would think it’s too much work…but it would probably be a great exercise for her because she just doesn’t have a clue that she overspends until she sees that her cc have a huge balance at the end of the month.

DWCAP – I think you hit the nail on the head regarding spending to fill emotional issues – I am sure that’s what this is about for this family. I have tried to encourage her (gently) to look at why she feels she “needs” all these status items, the problem is I am a therapist so with friends I have to be very careful not to get to “psychotherapyish” with them or it will just get messy. So when she keeps complaining to me and wanting my help, I figured if I just gave her a book on budgeting I’ve “helped” her while still maintaining boundaries.