An address delivered in the Welfare Services Session of the 145th Annual General Conference of The Church of Jesus Christ of Latter-day Saints, April 5, 1975
CopyrightÂŽ 1975 Corporation of the President of The Church of Jesus Christ of Latter-day Saints PXWE0031
1 /81
25M
Printed in USA
President S p e n c e r W. K i m b a l l ' s E n d o r s e m e n t of t t i e T w e l v e P o i n t s In Elder A s h t o n ' s Talk I have been t h i n k i n g of m a n y fhings since we c a m e to this meeting. I e n d o r s e what Brother A s h t o n has said. I think if i were sfarting with a y o u n g family, I w o u l d want to get the twelve points e x p l a i n e d by Brother A s h t o n a n d follow f h e m explicifly myself a n d feach my c h i l d r e n a n d my family a n d e v e r y b o d y with w h o m I c a m e in c o n t a c t . It is basic. All my life f r o m c h i l d h o o d I have heard fhe Brefhren saying " g e f ouf of debf a n d stay out of d e b f . " I was e m p l o y e d for s o m e years in the b a n k s a n d I saw the terrible situation that m a n y people were in b e c a u s e they had ignored that important c o u n s e l . I agree with ali that Brother A s h ton has said this day with regard to famiiy f i n a n c i n g in the h o m e . Every famiiy s h o u i d have a b u d g e t . W h y , we w o u l d not think of g o i n g o n e day w i t h o u t a b u d g e t in this C h u r c h or our businesses. We have to k n o w a p p r o x i m a t e l y what we may receive, a n d w e certainly must k n o w what we are g o i n g to s p e n d . A n d o n e of the successes of fhe C h u r c h w o u l d have to be that the Brethren w a t c h these things very carefully, and w e d o not s p e n d that w h i c h we do not have.
talked a b o u t that y e t . " These c o m m e n t s surprised a n d s h o c k e d m e . H o w important are m o n e y m a n a g e m e n t a n d f i n a n c e s in marriage a n d famiiy affairs? May I r e s p o n d , " T r e m e n d o u s l y . " The A m e r i c a n Bar A s s o c i a t i o n recently indicated that 8 9 percent of all d i v o r c e s c o u l d be t r a c e d to quarrels a n d a c c u s a t i o n s over m o n e y . Others have estimated that 75 percent of ali d i v o r c e s result f r o m clashes over f i n a n c e s . S o m e professional counselors indicate that four out of five families are s t r a p p e d with serious m o n e y p r o b lems. by Elder Marvin J. A s h t o n of t h e C o u n c i l of t h e T w e l v e Recently I had the o p p o r t u n i t y to visit with a c h o i c e y o u n g c o u p l e . They were to be married within the week. Their eyes sparkled in anticipation of the important event a n d their c o n t i n u i n g love for one another. Both had the a d v a n t a g e s of college education, good homes, and cultural e x p e r i e n c e s . It was delightful to share their personaiities, pians, a n d potentials. Their c o u r t s h i p already seemed appropriately launched o n an eternal basis. D u r i n g our interview, their res p o n s e s to only o n e q u e s t i o n gave me c o n c e r n . I h o p e my anxieties a n d s u g g e s t i o n s c a u s e t h e m to reassess their p e n d i n g partnership. To the q u e s t i o n . " W h o is g o i n g to m a n a g e the m o n e y in y o u r marria g e ? " she said, " H e is, I g u e s s , " while he r e s p o n d e d , " W e haven't
M a y I at t h i s t i m e h a s t e n to e m p h a s i z e the fact that these marriage tragedies are not c a u s e d simply by lack of m o n e y , but rather by the m i s m a n a g e m e n t of personal fina n c e s . A prospective wife c o u l d well c o n c e r n herself not with the amount her h u s b a n d - t o - b e c a n earn in a m o n t h , but rather with h o w he will m a n a g e the m o n e y that c o m e s into his h a n d s . M o n e y m a n a g e m e n t s h o u i d take p r e c e d e n c e over money productivity. A prospective h u s b a n d w h o is e n g a g e d to a sweetheart w h o has everything w o u l d d o well to take yet another look a n d see if she has m o n e y - m a n a g e m e n t sense. in the h o m e , m o n e y m a n a g e m e n t b e t w e e n h u s b a n d a n d wife s h o u i d be on a partnership basis, with both parties having a v o i c e in decision a n d policy m a k i n g . W h e n children c o m e a l o n g a n d r e a c h the age of a c c o u n t a b i l i t y , they t o o s h o u i d be involved in m o n e y c o n c e r n s o n a
limited partnership basis. Peace, c o n t e n t m e n t , love, a n d security in the h o m e are not possible w h e n financial anxieties a n d bickerings prevail. W h e t h e r we are anticipating marriage or are well info if, today is fhe time for all of us to review a n d repent as necessary to improve our m o n e y m a n a g e m e n t skills and live within our m e a n s . May I m a k e s o m e r e c o m m e n d a tions for i m p r o v e d personal a n d family financial m a n a g e m e n t , since proper m o n e y m a n a g e m e n t a n d living within o n e ' s m e a n s are essential in t o d a y ' s w o r l d if w e are to live a b u n d a n t l y a n d happily. The following twelve points will help each of us achieve this goal, i believe. Teach family members e a r l y t h e I m p o r t a n c e of working and earning. " i n the sweat of thy face shait f h o u eat b r e a d " (Genesis 3:19) is not o u t d a t e d c o u n s e l . It is basic to personal welfare. O n e of fhe greatest favors parents can d o for their children is to t e a c h t h e m to w o r k . M u c h has been said over the years a b o u t c h i l d r e n a n d m o n t h l y allowances, and opinions and recomm e n d a t i o n s vary greatly. I'm f r o m the old s c h o o l . I believe children should earn their money needs through service and appropriate c h o r e s . I think it is u n f o r t u n a t e for a child to g r o w up in a h o m e w h e r e the seed is planted in the c h i l d ' s m i n d that there is a famiiy m o n e y
tree that automatically d r o p s " g r e e n stuff" o n c e a week or o n c e a m o n f h .
2
Teach children to make m o n e y d e c i s i o n s In k e e p ing with their capacities to comprehend. " S a v e your m o n e y " is a h o l l o w p r o n o u n c e m e n f f r o m a parent to a c h i l d . " S a v e y o u r m o n e y for a miss i o n , bicycle, doll h o u s e , f r o u s s e a u , or c a r " m a k e s u n d e r s t a n d a b l e sense. Family unity c o m e s from saving t o g e t h e r for a c o m m o n , joinfly a p p r o v e d p u r p o s e . In our h o m e we f o u n d it unifying fo have a c h i l d save for a major project a n d then, when the amount was achieved, w e m a t c h e d it with a p r e d e t e r m i n e d p e r c e n t a g e , similar to what the C h u r c h d o e s with the w a r d s a n d stakes in b u i l d i n g a n d real estate matters.
3
Teach each family member to contribute to the total family welfare. E n c o u r a g e fun projects, unders t a n d a b l e to the c h i l d r e n , that c o n tribute to a family goal or joy. S o m e families miss a t r e m e n d o u s financial a n d spiritual e x p e r i e n c e w h e n they fail to sit together, preferably d u r i n g famiiy h o m e e v e n i n g , a n d each put in his share of t h e m o n t h l y a m o u n t g o i n g to the s o n or daughter, brother or sister w h o is serving in the m i s sion field. W h e n this m o n t h l y activity is e n g a g e d in as a famiiy, he or she b e c o m e s " o u r " missionary, wifh pride b e c o m i n g a t w o - w a y street.
4
Teaching family members to pay financial obligations p r o m p t l y is p a r t of I n t e g r i t y and honesty development. Paying tithing p r o m p t l y to Him w h o d o e s not c o m e to c h e c k up e a c h m o n t h will t e a c h us to be m o r e honest with those physically closer at h a n d .
5
Learn to manage money b e f o r e It m a n a g e s y o u . A bride-to-be w o u l d d o well to ask herself, " C a n my sweetheart m a n a g e m o n e y ? D o e s he k n o w h o w to live within his m e a n s ? " These are more important questions than " C a n he earn a lot of m o n e y ? " New aftitudes a n d relationships t o w a r d m o n e y s h o u l d be d e v e l o p e d c o n stantly by all c o u p l e s . After all, the p a r t n e r s h i p s h o u l d be f u l l a n d eternal.
6
Learn self-dlsclpllne and self-restraint In money matters. S u c h c o n d u c t c a n be m o r e important than courses in accounting. Married couples show genuine maturity w h e n they think of their partners a n d their families ahead of their o w n s p e n d i n g impulses. Money m a n a g e m e n t skills s h o u l d be learned together in a spirit of c o o p e r a t i o n a n d love o n a c o n t i n u i n g basis. A d i s g u s t e d h u s b a n d o n c e said, " I k n o w that in life m o n e y talks, but w h e n m y wife gefs h o l d of it, all it
ever says is ' g o o d b y e . ' " To the h u s b a n d w h o says his wife is the p o o r e s t m o n e y m a n a g e r in t h e w o r l d , I w o u l d say, " L o o k in the mirror a n d meet the w o r l d ' s poorest teacher-trainer."
7
Use a budget. A v o i d f i n a n c e charges except for h o m e s , e d u c a t i o n , a n d other vital investments. Buy c o n sumer d u r a b l e s with c a s h . A v o i d i n s t a l l m e n t c r e d i t a n d be c a r e f u l wifh y o u r use of credit cards. They are principally for c o n v e n i e n c e a n d s h o u l d not be used carelessly or recklessly. Buy used items until y o u have saved sufficient to p u r c h a s e quality new items. Save a n d invest a specific percenf of y o u r i n c o m e . Learn fhe principle of o b e d i e n c e as you make your Church contributions, a n d meet y o u r financial o b l i gations p r o m p t l y . Please listen carefully to this— a n d if if makes s o m e of y o u feel u n c o m f o r t a b l e , it is o n p u r p o s e : Latter-day Saints w h o ignore or avoid their creditors are entitled to feel the inner frustrations that s u c h c o n d u c t merits, a n d they are not living as Latter-day Saints s h o u i d !
8
Make education a continuing process. C o m p l e t e as m u c h f o r m a l , full-time e d u c a t i o n as possible. This i n c l u d e s t r a d e s c h o o l s . T h i s is m o n e y w e l l i n v e s t e d . Use n i g h t s c h o o l a n d c o r r e s p o n d e n c e classes to further prepare. A c q u i r e s o m e
special skill or ability that c o u l d be used to avoid p r o l o n g e d u n e m p l o y ment. In these days of w o r l d w i d e heavy u n e m p l o y m e n t , w e s h o u l d not allow ourselves, w h e n we are out of work, to sit b a c k a n d waif for " o u r type of j o b " if other h o n o r able interim e m p l o y m e n t b e c o m e s available.
9
Work toward h o m e ownership. This qualifies as an investment, not c o n s u m p t i o n . Buy the type of h o m e your i n c o m e will s u p porf. Improve fhe h o m e a n d beaufify t h e l a n d s c a p e all t h e t i m e y o u o c c u p y the premises so that if y o u d o sell it, y o u c a n use the capital gain to get a better h o m e .
M
Appropriately involve yourself in an i n s u r a n c e program. it is most important to have suffic i e n t m e d i c a l a n d a d e q u a t e life insurance. I to understand and with existing inflaLearn fo see t h r o u g h the m o n e y illusion a n d to r e c o g n i z e the real value of m o n e y . Most w a g e earners today have less p u r c h a s i n g p o w e r t h a n t h e y d i d in 1 9 7 3 . To s o m e degree inflation is p r o b a b l y g o i n g to be with us for a long time. Realize that y o u are living in a new era of higher prices and less a b u n d a n t energy.
Appropriately Involve y o u r s e l f in a f o o d storage program. A c c u m u l a t e y o u r basic supplies in a systematic a n d an orderly w a y . A v o i d g o i n g into debt for fhese purposes. B e w a r e of unwise p r o m o tional s c h e m e s . These few points and suggestions are not intended to be all-inclusive nor exhaustive. Rather, it is h o p e d that a need has been b r o u g h t to the surface for our serious c o n s i d e r a t i o n . W e need to r e c o g n i z e and be a w a r e of fhese basic guidelines for wise m o n e y m a n a g e m e n t . G o d help us to realize that m o n e y m a n a g e m e n t is an important ingredient in proper personal welfare. L e a r n i n g to live within our m e a n s s h o u l d be a c o n t i n u i n g process. W e need to work c o n s t a n t l y t o w a r d k e e p i n g ourselves free of financial diffiiculties. It is a h a p p y day f i n a n cially w h e n time a n d interest are w o r k i n g for y o u a n d not against you. M o n e y in the lives of Latter-day Saints s h o u i d be used as a m e a n s of a c h i e v i n g e t e r n a l h a p p i n e s s . Careless a n d selfish uses c a u s e s us to live in financial b o n d a g e . W e can'f afford to neglect personal a n d family involvement in our m o n e y m a n a g e m e n t . G o d will o p e n the w i n d o w s of heaven to us in these matters if we will but live close to him a n d keep his c o m m a n d m e n t s . To this truth i bear my t e s t i m o n y , in the name of Jesus Chrisf. A m e n .
mm