Title: BYU Conference on Family Life Strengthening Families in a Troubled World
1 BYU Conference on Family LifeStrengthening
Families in a Troubled World
- Family Finance
- An Important Responsibility
- Myths of Family Finance
- Bryan Sudweeks, Ph.D., CFA.
- March 28, 2008
- From the BYU MSM web site
- Personal Finance Another Perspective
- at http//personalfinance.byu.net
2Abstract
- Often we think that family finance has nothing to
do with our responsibilities as parents, or if it
is important, it only has a minor importance.
These are myths. I suggest money matters and
money matters are spiritual matters. We must
get away from the myths of family finance and
learn the importance and doctrine surrounding
these important principles. We must then apply
them and teach them to our children. I give
suggestions and resources to help parents in this
important responsibility.
3Objectives
- 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 Credit Card and Consumer Debt is OK
- Debt is Dumb
- Myth 4 I Pay my Tithing, I Have Nothing to
Worry About Financially - Dangers of not Being Financially Wise
- Myth 5 There are no Good Sources of Information
- Introduction to the BYU MSM Website
4Myth 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) - But the reality is different!
5Reality 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
6Ownership (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
- 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
7Principle 2 Stewardship
- 2. Stewardship We are stewards over all that the
Lord has, is, 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 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)
8Stewardship (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)
9Principle 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).
10Agency (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!
11Principle 4 Accountability
- 4. Accountability We are accountable for every
choice we make - The Lord through the prophet Joseph stated
- Verily I say, men should be anxiously engaged in
a good cause, and do many things of their own
free will, and bring to pass much righteousness.
For the power is in them, wherein they are agents
unto themselves. (DC 58 27-28) - 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)
12Accountability (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
13What 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.)
14Myth 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 - But the reality is different!
15Reality 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, get
out of debt, build a reserve, are all not
temporal but spiritual commandments
16Money 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
17Money Matters (continued)
- 3. Money is a tool to teach gospel principles
- Money is a tool to teach us many things,
including sacrifice, discipline, and work. - Money teaches and reinforces both the spiritual
and physical creation, as we develop goals and
budgets and work toward them - Learning to manage money wisely can increase our
freedom, teach us eternal gospel principles, and
bring peace and happiness into our lives
18Money 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 be truly free
19Money 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
20Myth 3 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? - But the reality is different!
21Reality 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 pay them off each month?
22Reality 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?
23Myth 4 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, and pour you out a blessing, that there
shall not be room enough to receive it. (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 (without any
learning, thought, hard work or effort)? - The reality is different
24Reality 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
- We still must learn to live in this increasingly
challenging and technical financial world - There are more commandments which relate to
finances than just paying your tithing, i.e.,
live with your means, build a reserve, prepare
for retirement, missions and education
25Dangers of not Being Financially Wise (continued)
- Interesting statistics
- Average per household debt in the U.S. is 14,500
excluding mortgage debt - 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
26E. Myth 5 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
27Reality 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
28Home Page
29Individual Lessons
30Recommended Courses of Study
318 Basic Lessons (with lessons, readings,
spreadsheets, handouts, FHE lessons, etc.)
32Personal Finance Manuals
33Tools and Resources
34Summary
- 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
35Conclusions (continued)
- Myth 2 Money matters are temporal matters
- Reality Money matters are spiritual matters
- All things are spiritual
- Money is a medium of exchange
- Money is a tool to teach us gospel principles
- There is no freedom without financial freedom
- The Lord wants, and will help us, get out of debt
and become wiser financial stewards
36Conclusions (continued)
- Myth 3 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
37Conclusions (continued)
- Myth 4 I pay my tithing, I have nothing to
worry about financially - Reality Dangers of not Being Financially Wise
- In addition to tithing, there are more
commandments we must obey - Live within your means
- Stay out of debt
- Build a reserve
- Save for missions, education and retirement
38Conclusions (continued)
- Myth 5 There are no good sources of information
- Reality There are many good sources available
- One new source is the BYU MSM Personal Finance
website -
39Thank 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!
40Thank You