Recommendations for very basic personal finance books/sites

[mousebandit]

Hi there.  We just had a very nice family, mid-40s, come through looking to purchase or rent our house that we have listed, and unfortunately, they don't seem to have any idea of personal finance basics.  They are making about $3000/mo (family of 4) and trying to buy a home listed for twice what they actually qualify for.  They then wanted to rent it out with the rent being 50% of their gross pay.  I am not sure how to nicely explain how totally far off base they are, and am looking for some resources to point them at, when I give them the news that we can't rent or sell to them.

I've thought of Dave Ramsey - does he explain the basics that your housing costs need to be 25% or less of pay, etc?  Any others? 

Thanks guys! 

[Proud Foot]

As far as Dave Ramsey, point them to this blog post from his website. Hopefully it will lead them to reading more on his site and finding other sites to learn more about personal finance.

[mousebandit]

Thank you!

[Milizard]

I really like Elizabeth Warren 's book, All Your Worth, for this purpose.   I gave it as part of a wedding gift to a younger couple in my family.   If I remember correctly,  there was lots about budgeting to determine affordability.

[Sibley]

I understand your intention, but be aware they may not take your recommendation kindly. You may be better off just saying that the general rule of thumb is housing shouldn't be more than 25-30% of your  take home pay.

[profnot]

+1 on Dave Ramsey for this couple.

They can get Total Money Makeover from the library.

[inline five]

I would not try to help. Nothing good can come of it. IMO. Just decline and let it be.

[HBFIRE]

Why are you getting into the finances of a potential buyer?  This is extremely strange.  That information shouldn't come up at all, let the lender deal with that.

Edit: I see, looking to rent as well.  Yes, I'd just mention the income:rent ratio is too high.  I would never try to give financial advice to someone I don't know unless its requested.