October 2012 Wise Stewards Finance Tip

Wise Stewards Finance Tip Series 2, Article 6

“TEACH FAMILY MEMBERS EARLY THE IMPORTANCE OF WORKING AND EARNING.   “In the sweat of thy face shalt thou eat bread” is not outdated counsel. It is basic to personal welfare. One of the greatest favors parents can do for their children is to teach them to work. Much has been said over the years about children and monthly allowances, and opinions and recommendations vary greatly. I’m from the “old school.” I believe children should earn their money needs through service and appropriate chores. Some financial rewards to children may also be tied to educational effort and the

accomplishment of other worthwhile goals. I think it is unfortunate for a child to grow up in a home where the seed is planted in the child’s mind that there is a family money tree that automatically drops “green stuff” once a week or once a month.

–from Elder Marvin J. Ashton’s One for the Money Guide to Family Finance 

I am so grateful for parents who taught me at a young age not to fear good hard work.  I love feeling the satisfaction of a job well done.  One of my biggest goals is to pass this along to my children.  If you have a kid that’s less than enthusiastic about work, you may know what a challenge this can be.  If a young one doesn’t respond well to you “helping them” earn money you may want to enlist the help of trusted neighbors or extended family members where appropriate.  Sometimes mowing lawns or washing windows for someone else can get them excited about work and help them feel pride and responsibility.

September 2012 Wise Stewards Finance Tip

Wise Stewards Finance Tip Series 2, Article 5

“U S E   A   B U D G ET.   Every family must have a predetermined understanding of how

much money will be available each month and the amount to be spent in each category of the family budget. Checkbooks facilitate family cash management and record-keeping. Carefully record

each check when written and balance the checkbook with the monthly bank statement. Save and invest a specific percentage of your income. Liquid savings available for emergencies should be sufficient to cover at least three months of all essential family obligations. Every LDS family should file honest and timely tax returns. ” 

–from Elder Marvin J. Ashton’s One for the Money Guide to Family Finance 

It is essential to have a functioning budge and to know how much money goes in and out each month.  One thing that makes it harder to keep track is the use of debit cards.  Most of us no longer write checks every time we purchase something.  Swiping a card is so much easier, but it also makes spending money easier-and recordkeeping easier to forget.  Don’t forget to track all of your purchases.  Always review bank statements and reconcile your spending.  You don’t have to budget for an entire month, but do budget for a specific time period.  It is helpful to have this match your pay period whether that is monthly, bi-weekly, weekly, etc.  All these tips are meant to keep us out of pitfalls like the one in this quote from Elder Ashton: “Please listen carefully to this—and if it makes some of you feel uncomfortable, it is on purpose: Latter-day Saints who ignore or avoid their creditors are entitled to feel the inner frustrations that such conduct merits, and they are not living as Latter-day Saints should! Bankruptcy should be avoided, except only under the most unique and irreversible circumstances, and then utilized only after prayerful thought and thorough legal and financial consultation.”

August 2012 Wise Stewards Finance Tip

Wise Stewards Finance Tip Series 2, Article 4

“Learn Self-Discipline and Self-Restraint in Money Matters. Learning how to discipline oneself and exercise constraint where money is concerned can be more important than courses in accounting. Young couples should recognize that they cannot immediately maintain the same spending patterns and life-style as that to which they were accustomed as part of their parents’ family. Married couples show genuine maturity when they think of their partner’s and their family’s needs ahead of their own spending impulses. Money management skills should be learned together in a spirit of cooperation and love on a continuing basis.” 

–from Elder Marvin J. Ashton’s One for the Money Guide to Family Finance 

This is obviously a big warning about impulse buying, which is so easy to do. But once you learn to control your spending with small everyday items it doesn’t mean you can let your guard down.  As Elder Ashton indicates, self-discipline and self restraint are skills that need to be revisited continuously.  Many people – couples and singles – who have a change in their financial situation tend to let this principle slide.  The graduate who lived frugally for so long while in school and now has a job may want to splurge.  The couple whose children are finally out of the house may want to take that dream vacation.  The employee who gets a great promotion may think a little reward is in order.  These situations are a great opportunity to take a step back and re-evaluate your financial situation.  A reward/treat/pat on the back is a great thing as long as it fits into your long term goals.  So before you buy that new car/trip/pair of designer shoes, make sure it’s ⁽¹⁾something that you really can afford, and ⁽²⁾something your spouse – if you have one – can be happy with as well.   

June Wise Stewards Finance Tip

Wise Steward Newsletter Series 2, Article 3

“Learn to Manage Money Before it Manages You.  Financial peace of mind is not determined by how much we make, but is dependent on how much we spend.”                                                                                                                                                                                                                               

–from Elder Marvin J. Ashton’s One for the Money Guide to Family Finance 

This is some of the soundest advice about money that money can buy…and it’s free!  We live in a time and culture where nothing is out of reach.  You don’t have to have money to buy what you want . . . or do you?   Is your approach to money management Proactive, or Reactive?  Living within one’s means can be challenging on a modest income, but as long as you spend less than you earn you can be in control of your money.  Make it a habit to save up cash before you buy something, not using credit.  Also watch out for situations that require a long term contract.  Cable and cell phone companies may give you a low rate if you agree to pay for years and often charge a big cancellation fee.  Consider pay as you go cell phone service, or a higher rate that you can cancel any time.  If your idea of managing the budget is making sure all the credit card payments are made, you’ve moved into a reactive situation and your money is managing you.  If this is the case, somewhere along the line you’ve spent more money than you’ve earned.  Correct this as soon as possible.  It may mean taking on extra work, selling some things, or cutting back on unnecessary expenditures.  The goal is to be in charge of where your money goes.    

May Wise Stewards Finance Tip

Wise Steward Newsletter Series 2, Article 2

“Pay an honest tithing. Successful financial management in every LDS home begins with the payment of an honest tithe. If our tithing and fast offerings are the first obligations met following the receipt of each paycheck, our commitment to this important gospel principle will be strengthened and the likelihood of financial mismanagement will be reduced. Paying tithing promptly to Him who does not come to check up each month will teach us and our children to be more honest with those physically closer at hand.”                                                

                                                                                                                                                                                                      –from Elder Marvin J. Ashton’s "Guide to FamilyFinance" in the April 2000 Ensign

We’ve been commanded to pay tithing.  We’ve also been promised great blessings if we keep this commandment.  I’ve heard many stories about blessings received from the payment of tithing and even had my own personal experiences that have strengthened my testimony of this law.  Even without a show of divine intervention, it just makes sense.  The Lord gives us commandments that help us to be happy.  We may not understand the reasons at first, but sooner or later they become apparent.  The Word of Wisdom is seen as a strange commandment by those outside our faith, but as I get older I see the benefits in my body compared to those who have lived differently.  The act of paying tithing is something that takes discipline, and just like living the Word of Wisdom, the results aren’t always immediately apparent.  As Elder Ashton mentions, no one will be checking up each month to make sure you’ve paid, but when you are organized and disciplined with this principle, it lays the foundation for a responsible outlook on other financial matters.

April Wise Stewards Finance Tip

Many of you remember Elder Marvin J. Ashton.  Some may even remember the talk he gave in the April 1975 general conference during the welfare session titled “Guide to Family Finance”.  This talk, given more than a quarter century ago is the basis of the church pamphlet “One for the Money” that is available through church distribution.  Its advice is as good today as it was then, and even more important to heed now.  I wanted to include a quote from Elder Ashton’s quote which is disturbing in that the statistics continue to remain similar to those cited in 1975.

“How important are money management and finances in marriage and family affairs? May I respond, “Tremendously.” The American Bar Association has indicated that 89 percent of all divorces can be traced to quarrels and accusations over money. Others have estimated that 75 percent of all divorces result from clashes over finances. Some professional counselors indicate that four out of five families are strapped with serious money problems.”

Elder Ashton’s talk has been reprinted in more than one Ensign issue in the years since it was first given, which reinforces how important his message is.  With all the resources the church puts out to help families, this one is vital.  I feel so blessed to belong to a church where the importance of the stability of marriage and family is paramount, and this reinforces my testimony of the gospel.  Over the next several months we’ll look at the 12 points that Elder Ashton covers in “One for the Money” so we can take a closer look at this topic that is so important whether you are single, married, or busily raising a family.