Edgemont South Stake Relief Society

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• Edgemont South Stake Relief Society
• Women Preparing for the Future
• Eight Myths of Family Finance
• February 24, 2009
• Bryan Sudweeks
• From the BYU MSM web site
• Personal Finance Another Perspective
• at http//personalfinance.byu.net

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Abstract

• Some women have felt financial management was
  the husbands job and have not been equal partners
  in this responsibility. That attitude is
  incorrect and is an abdication of responsibility.
  Given women live longer, invest more
  conservatively, and have less in retirement from
  working in the home, it is even more critical
  that women take an active role and become equal
  partners in the financial management decisions in
  their families. This presentation will discuss
  that and other myths.

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Objectives

• A. Understand the Eight Myths of Family Finance

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A. Understand the Eight Myths of Family Finance

• Myth 1 Everything I Have is Mine
• Principles of family finance
• Myth 2 Money Matters are Temporal Matters
• Money matters are spiritual matters
• Myth 3 Family Finances are a Mans
  Responsibility
• Family finances are an equal and shared
  responsibility

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Eight Myths (continued)

• Myth 4 Credit Card and Consumer Debt is OK
• Debt is dumb
• Myth 5 I Pay my Tithing, I Have Nothing to
  Worry About Financially
• There are lots of other things to be concerned
  about as well
• Myth 6 Budgets are for College Students
• Every family should have a budget

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Eight Myths (continued)

• Myth 7 Parents are Responsible for their Adult
  Childrens Finances for the Rest of their Lives
• Adult children are responsible for their own
  finances
• Myth 8 There are no Good Sources of Information
• Introduction to the BYU MSM website

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Myth 1 Everything I have is Mine

• C.S. Lewis, in his Screwtape Letters, had the
  devil Screwtape say
• The sense of ownership in general is always to be
  encouraged. The humans are always putting up
  claims to ownership which sound equally funny in
  Heaven and in Hell and we must keep them doing
  so. . . We teach this sense of ownership not only
  by pride but by confusion. We teach them not to
  notice the differences. . .that run from my
  boot through my dog,. . .to my God.
  (Screwtape Letters, HarperCollins, San Francisco,
  2000, pp. 113-114)
• The reality is different!

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Reality Principles of Family Finance

• Principle 1 Ownership
• 1. Ownership Everything we have is the Lords
• The Psalmist wrote
• The earth is the Lords, and the fullness
  thereof the world, and they that dwell therein.
  (Psalms 241)
• The Lord is the creator of the earth (Mosiah
  221), the supplier of our breath (2 Nephi 926),
  the giver of our knowledge (Moses 732) and our
  life (Mosiah 222), and all we have and are
  (Mosiah 221).
• Nothing we have is our ownits all Gods

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Ownership (continued)

• As such, there should be no feeling of pride for
  the things we have, are, or will become
• These things do not belong to us, but are on loan
  from a loving God
• Our blessings should encourage greater obedience
  to Gods commandments as we realize they are
  gifts from a loving Father in Heaven
  (Ecclesiastes 519) and as we try to thank Him
  for the things He has blessed us with

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Principle 2 Stewardship

• 2. Stewardship We are stewards over all that the
  Lord has, is giving, or will share with us
• The Lord through the Prophet Joseph Smith stated
  
• It is expedient that I, the Lord, should make
  every man accountable, as a steward over earthly
  blessings, which I have made and prepared for my
  creatures. (DC 10413)
• The Lord through the prophet Brigham Young said
• Thou shalt be diligent in preserving what thou
  hast, that thou mayest be a wise steward for it
  is the free gift of the Lord thy God, and thou
  art his steward. (DC 13627)

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Stewardship (continued)

• We are stewards, not owners, over the things we
  possess
• As wise stewards, it is our responsibility to
  learn everything we can about our stewardship
• The purpose of this presentation is to help you
  understand and teach others to manage that
  stewardship better, that we all might be
  approved in all things, and be accounted as wise
  stewards. (DC 7222)

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Principle 3 Agency

• 3. Agency The gift of choice is mans most
  precious inheritance
• President Marion G. Romney said
• Agency means the freedom and power to choose and
  act. Next to life itself, it is mans most
  precious inheritance. (Ensign, May 1976, p. 120.)
  
• President David O. McKay
• Next to the bestowal of life itself, the right
  to direct that life is Gods greatest gift to
  man. Freedom of choice is more to be treasured
  than any possession earth can give (italics
  added, in Conference Report, Apr. 1950, p. 32
  italics added).

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Agency (continued)

• Agency is one of the greatest gifts of God.
• Instead of using this gift wrongly, we should do
  all in our power to make wise choices
• And then we should thank a loving Father and Son
  for this wonderful right to chooseand then use
  that agency wisely!

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Principle 4 Accountability

• 4. Accountability We are accountable for every
  choice we make
• The Lord through the prophet Joseph stated
• For it is required of the Lord, at the hand of
  every steward, to render an account of his
  stewardship, both in time and in eternity. (DC
  723)
• Elder Todd Christofferson recently stated
• We control the disposition of our means and
  resources, but we account to God for this
  stewardship over earthly things. (D. Todd
  Christofferson, Come to Zion, Ensign, November
  2008, p. )

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Accountability (continued)

• While the blessing of agency is an unconditional
  gift from God, how we use that gift shows how
  much we love Him and His Son
• We will all be held accountable for our use of
  our agency
• We should do all in our power to use our choices
  wisely

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What is Really Ours?

• Elder Neal A. Maxwell stated
• The submission of ones will is really the only
  uniquely personal thing we have to place on Gods
  altar. The many other things we give, brothers
  and sisters, are actually the things He has
  already given or loaned to us. However, when you
  and I finally submit ourselves, by letting our
  individual wills be swallowed up in Gods will,
  then we are really giving something to Him! It is
  the only possession which is truly ours to give!
  (italics added, Swallowed Up in the Will of the
  Father, Ensign, Nov. 1995, 22.)

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Myth 2 Money Matters are Temporal Matters

• Many think money matters are only temporal
  matters
• They feel that how they manage their money has
  nothing to do with their spirituality
• The reality is different!

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Reality Money Matters are Spiritual Matters

• Money matters are spiritual matters because
• 1. All things are spiritual
• In DC 2934 the Lord says, All things unto me
  are spiritual, and not at any time have I given
  unto you a law which was temporal.
• The Apostle Paul taught that the love of money is
  evil, not money itself. (1 Timothy 610)
• The commandments to live within our means, live
  on a budget, get out of debt, build a reserve,
  etc., are all not temporal but spiritual
  commandments

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Money Matters (continued)

• 2. Money is a medium of exchange
• Elder Sterling W. Sill said
• We can build temples with money, we can send out
  missionaries with money, we can erect educational
  institutions, operate hospitals, and pay our
  tithing with money. In many ways we can build
  up the kingdom of God with money. (A Fortune to
  Share, Ensign, Jan. 1974, 60.)
• The same currency that we go into debt with
  builds our temples

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Money Matters (continued)

• 3. Money is a tool to teach gospel principles
• Money is a tool to teach us many things,
  including the gospel principles of sacrifice,
  discipline, law of the harvest, and work.
• Money teaches and reinforces both the spiritual
  and physical creation, as we develop goals and
  budgets and work toward them
• Money teaches the Law of the Harvest, as we
  invest for retirement and other goals
• Learning to manage money wisely can increase our
  freedom, teach us eternal gospel principles, and
  bring peace and happiness into our lives

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Money Matters (continued)

• 4. There is no true freedom without financial
  freedom
• President Ezra Taft Benson said
• The Lord desires his Saints to be free and
  independent in the critical days ahead. But no
  man is truly free who is in financial bondage.
  (Prepare Ye, Ensign, Jan. 1974, p. 69).
• We must work to get and stay out of debt to be
  truly free.
• Debt is one of Satans greatest tools to limit
  our freedom

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Money Matters (continued)

• 5. The Lord wants and will help us to be wiser
  financial stewards
• The Lord said
• Behold it is my will that you shall pay all your
  debts. And it is my will that you shall humble
  yourselves before me, and obtain this blessing by
  your diligence and humility and the prayer of
  faith. And inasmuch as you are diligent and
  humble, and exercise the prayer of faith, behold,
  I will soften the hearts of those to whom you are
  in debt, until I shall send means unto you for
  your deliverance. (italics added, DC 104 78-79)
• But we must do it in His way

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Myth 3 Money Matters are the Mans
Responsibility

• Many think money matters are a priesthood
  responsibility and not a womens responsibility
• They think if women become knowledgeable about
  financial matters, wont their spouses be upset
• If spouses make the moneydont they get to
  decide where it goes?
• The reality is different!
• Women are equal partners, live longer than men,
  are more conservative in their investments, and
  have less saved for retirement (due to working in
  the home). They should be more responsible!

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Reality Both are Equally Responsible

• The Proclamation on the Family states
• By divine design, fathers are to preside over
  their families in love and righteousness and are
  responsible to provide the necessities of life
  and protection for their families. Mothers are
  primarily responsible for the nurture of their
  children. In these sacred responsibilities,
  fathers and mothers are obligated to help one
  another as equal partners. (Proclamation on the
  Family, 1995)
• Spouses are to be equal partners in financial
  matters (just like they are equal partners in
  spiritual matters)

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Equally Responsible (continued)

• Control of money by one spouse as a source of
  power, or failure by a partner to be a part of
  financial management are both incorrect
  attitudes.
• Management of family finances should be mutual
  between husband and wife in an attitude of
  openness and trust. Control of the money by one
  spouse as a source of power and authority causes
  inequality in the marriage and is inappropriate.
  Conversely, if a marriage partner voluntarily
  removes himself or herself entirely from family
  financial management, that is an abdication of
  necessary responsibility. (Marvin J. Ashton,
  Guide to Family Finance, Liahona, Apr. 2000, 42)

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Myth 4 Credit Card and Consumer Debt is OK

• It is OK for me to go into debt for things,
  especially things I really want
• It helps build my credit score (I think)
• I know and I am planning to pay them
  offeventually well, at least I hope to be able
  to pay them off eventually well, maybe someday I
  will pay them offI think?
• The reality is different!

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Reality Debt is Dumb

• President James E. Faust stated
• Over the years the wise counsel of our leaders
  has been to avoid debt except for the purchase of
  a home or to pay for an education. I have not
  heard any of the prophets change this counsel.
  (Doing the Best Things in the Worst Times,
  Ensign, Aug. 1984, 41)
• Sadly, consumer and credit card debt are not
  included in that short list of acceptable debt
• Credit cards are fine if we pay them off each
  monthwe are not incurring debt charges
• But do we really pay them off each month?

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Debt is Dumb (continued)

• President Ezra Taft Bensons said
• Pride is a sin that can readily be seen in others
  but is rarely admitted in ourselves. . . It is
  manifest in so many ways, such as . . . living
  beyond our means. (italics added, Ezra Taft
  Benson, The Faces of Pride, New Era, Oct. 2003,
  p. 40)
• Perhaps the debt problem is more a problem of
  pride than it is of money?
• Dont think of it as I am going into debt
• Think of it as Im spending my retirement and my
  childrens mission and education money

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Myth 5 If I Pay my Tithing, I Have Nothing to
Worry About Financially

• Didnt the prophet Malachi say
• Bring ye all the tithes into the storehouse, . .
  . and prove me now herewith, saith the Lord of
  hosts, if I will not open you the windows of
  heaven. (Malachi 310, 3 Nephi 2410)
• Doesnt it say that if I pay my tithing, the
  windows of heaven will open and I will get all
  the financial blessings that I need, regardless
  of any learning, thought, application, hard work
  or effort on my part?
• The reality is different!

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Reality Dangers of not Being Financially Wise

• The prophet Malachi promised that God will open
  the windows of heaven
• However, there is no promise that the windows of
  heaven will be financial blessings or that paying
  tithing will eliminate all our financial problems
• We still are stewards over what we have and are,
  and must learn to live in this increasingly
  challenging and technical financial world
• There are still more commandments which relate to
  finances in addition to just paying your tithing,
  i.e., living with your means, building a reserve,
  preparing for retirement, missions and education,
  etc.

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Dangers (continued)

• Interesting statistics
• Average per household debt in the U.S. is 14,500
  excluding mortgage debt in 2007
• Credit card users pay 112 more than cash users
• 40 of American families spend more than they
  earn
• The typical family pays 1,200 per year in
  interest
• About 60 of all active credit card accounts are
  not paid off monthly
• Source http//www.bankrate.com/brm/news/debt/debt
  guide2004/debt-trivia1.asp
• Home equity in the U.S. fell to below 50 for the
  first time since the 1930s
• Most couples indicate that finances are a major
  stress on their marriages

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Myth 6 Budgets are for College Students

• Living on budgets is only for college students
  and those that need to be careful with their
  money, not more mature people like myself
• We do not need to have a budget because we know
  where our money goes (it goes to pay the billsI
  think)
• The reality is different!

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Reality Every Family Should have a Budget

• President Spencer W. Kimball counseled
• Every family should have a budget. Why, we would
  not think of going one day without a budget in
  this Church or our businesses. We have to know
  approximately what we may receive, and we
  certainly must know what we are going to spend.
  And one of the successes of the Church would have
  to be that the Brethren watch these things very
  carefully, and we do not spend that which we do
  not have. (Conference Report, April 1975, pp.
  166-167.)
• If the brethren watch these things very
  carefully, shouldnt we?

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Every Family Should Have a Budget (continued)

• What is a Budget?
• It is the single most important tool in helping
  you attain your personal goals.
• It is the process of planning your spending
• Its making sure your resources are used for the
  things that matter mostyour personal goals
• Budgeting is a star to set your sights by, not a
  stick to beat yourself with

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Budgeting The Old Way
Available for Savings
Income
Expenses
Tithing
Personal Goals
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Budgeting The Better Way
Other Savings
Income
Expenses
Pay the Lord
Pay Yourself
Personal Goals
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Every Family Should Have a Budget (continued)

• Elder L. Tom Perry taught this when he said
• After paying your tithing of 10 percent to the
  Lord, you pay yourself a predetermined amount
  directly into savings. That leaves you a balance
  of your income to budget for taxes, food,
  clothing, shelter, transportation, etc. It is
  amazing to me that so many people work all of
  their lives for the grocer, the landlord, the
  power company, the automobile salesman, and the
  bank, and yet think so little of their own
  efforts that they pay themselves nothing. (L. Tom
  Perry, Becoming Self-Reliant, Ensign, Nov.
  1991, 64.)

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Every Family Should Have a Budget (continued)

• Elder Marvin J. Ashton stated
• Some claim living within a budget takes the fun
  out of life and is too restrictive. But those who
  avoid the inconvenience of a budget must suffer
  the pains of living outside of it. The Church
  operates within a budget. Successful business
  functions within a budget. Families free of
  crushing debt have a budget. Budget guidelines
  encourage better performance and management.
  (italics added, Marvin J. Ashton, Its No Fun
  Being Poor, Ensign, Sept. 1982, 72.)

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Myth 7 Parents are Responsible to Support their
Adult Children Financially

• Parents must support their children financially,
  regardless of the age of their children
• They must continue giving food, clothing, cars,
  insurance, etc. regardless of the childrens age,
  actions, and unwillingness to learn financial
  responsibility
• They must take money that they scrimped and saved
  and give to their children so their children
  wont have to scrimp and save
• The reality is different!

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Reality Adult Children are Responsible

• After children become adults, they are
  responsible for their own financial well-being
• Parents are not responsible for their adult
  childrens financesthe adult children are.
  Likewise children are not responsible for their
  parents finances
• Parents can help if they think it is in the
  childs best interest, but they are not
  responsible
• Parents who continually support their children
  financially, will find their children will always
  need support. It will be difficult for the adult
  children to learn financial responsibility

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Myth 8 There are No Good Sources of Personal
Finance Information

• There is a lack of good sources of information on
  personal finance
• This is especially true for information from a
  correct perspective
• The reality is different!

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Reality Introduction to the MSM Website

• There are many sources of good information
• It just takes time to sort them out
• Let me add another source to your list
• The BYU Marriott School of Managements Personal
  Finance website at
• http//personalfinance.byu.net

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Home Page
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Individual Lessons
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Courses of Study
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8 Basic Lessons (with lessons, readings,
spreadsheets, handouts, FHE lessons, etc.)
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Personal Finance Manuals
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Tools and Resources
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Summary

• Myth 1 Everything I have is mine
• Reality Principles of Family Finance
• Ownership Everything is the Lords
• Stewardship We are stewards over everything
  that we have
• Agency This is one of Gods greatest gifts
• Accountability We will be held accountable for
  how we use the things we have been blessed with,
  including our financial resources

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Conclusions (continued)

• Myth 2 Money matters are temporal matters
• Reality Money matters are spiritual matters
• 1. All things are spiritual
• 2. Money is a medium of exchange
• 3. Money is a tool to teach us gospel principles
• 4. There is no freedom without financial freedom
• 5. The Lord wants, and will help us, get out of
  debt and become wiser financial stewards

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Conclusions (continued)

• Myth 3 Finances are a mans responsibility
• Reality Finances are a shared responsibility
• Both spouses are equally responsible for a
  familys finances
• In fact, because women live longer, invest more
  conservatively, have less at retirement, they
  likely should be MORE involved, responsible and
  knowledgeable

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Conclusions (continued)

• Myth 4 Credit card and consumer debt is OK
• Reality Debt is Dumb
• We have been counseled for many years to avoid
  debt except for a home and education
• That does not include credit card and consumer
  debt
• We should earn interestnot pay it

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Conclusions (continued)

• Myth 5 If I pay my tithing, I have nothing to
  worry about financially
• Reality There are dangers to not being
  financially wise
• In addition to tithing, there are other important
  commandments we must obey
• Live within your means
• Live on a budget
• Stay out of debt
• Build a reserve
• Save for missions, education and retirement

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Conclusions (continued)

• Myth 6 Only college students need to have a
  budget
• Reality Every family should have a budget
• If it is one of the reasons for the success of
  the church, it should also be a reason for the
  financial success of our families

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Conclusions (continued)

• Myth 7 Parents are responsible for their Adult
  Childrens Finances
• Reality Adult children are responsible for their
  own finances
• Parents who are continually supporting their
  children financially will find their children
  will never learn financial responsibility

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Conclusions (continued)

• Myth 8 There are no good sources of personal
  finance information
• Reality There are many good sources available
• One new source is the BYU MSM Personal Finance
  website at
• http//personalfinance.byu.edu

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Thank You

• I leave you with my excitement, my testimony of
  the gospel, and one of my favorite scriptures,
  DC 4562
• For verily I say unto you, that great things
  await you.
• Reality They truly do!

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Thank You
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Key Principles of Family Finance

• Its not what you earn, but what you save, that
  helps you acquire wealth. Its not what you save,
  but what you become, that makes you more like
  your Savior Jesus Christ
• Nothing you have is your ownit is all Gods.
  Live by the principles of ownership, stewardship,
  agency, and accountability and you will feel the
  Lords guidance in your life
• Your priorities are critical, so keep them in
  order. Pay the Lord first, yourself second, and
  then pay your other bills.

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Key Principles (continued)

• 4. Money cannot buy you happiness, but it can buy
  you security for you and your family. Be secure
  in you family, then find happiness in them and
  the gospel.
• 5. You make a living by what you earn, but a life
  by what you give. Learn to give more, for giving
  is what life is all about
• 6. Use marginal and opportunity costs and time
  value of money calculations when making financial
  decisions, then overlay those decisions with the
  gospel of Jesus Christ. Both parts are critical
  to the correct decision making process

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Key Principles (continued)

• 7. Plan your financial future early then live
  your plan. Prayerfully establish goals and plans
  to achieve them, and then work on achieving them
  with Gods help
• 8. Develop expertise in your financial
  stewardship then heed your own advice. Remember
  you are responsible for your spiritual and
  financial success