1. Just because you deposited a check today doesn’t mean you can start living it up tomorrow. It takes us three days on average to post the money to your account. (And why should we hurry? If you bounce a check, we collect around $30.)

2. Yes, we know the line is long and only one teller window is open, but no, the guy in the cubicle can’t come over to help out.He may not be allowed to do a teller’s job.

3. Call or visit in person to resolve a problem. Filling out online forms will usually get you the by-the-book reply, but a rep will often forgive a fee over the phone so we can all just get on with our lives.

4. Unless you’re Wolfgang Puck, our loan officers have pretty much decided before you walk in that you’re not getting a loanfor your dream bistro. But they’ll let you apply for one anyway. We’re not crazy about lending to nonprofits and houses of worship either. We don’t want the bad publicity when we go after them.

5. Our tellers routinely press you into opening new accountsbecause their jobs depend on it. Banks hire “mystery” customers who secretly test whether a teller is cross-selling services.

6. Don’t blame us — it’s not our fault you can’t control your spending. “The bank didn’t make you swipe your card or write a check that you didn’t have money for,” says one teller in Akron, Ohio.

7. Postdating a check rarely works. With stacks of deposits to process, we look at account names, not dates. If the check bounces, you’re liable.

8. Please don’t haul in plastic bags of loose change. We really don’t have the time or manpower to count it. Ask for free wrappers and bring in rolled coins next time.

9. Keep receipts for every ATM transaction — and please don’t feed cash directly into the machine without first putting it into an envelope (yes, people actually do this).

10. A consumer’s brain registers an immediate “Ouch!” whenever he’s hit with an itemized penalty, such as a bounced-check fee, so most people keep a much higher balance in their checking accounts than necessary, says personal-finance writer Jason Zweig. “Banks make a ton of money off this mental quirk since they would have to pay interest on the money if we left it in our savings accounts, where it belongs.”

11. Banks don’t always promote their checking accounts with thehighest interest rate. Why tell you about those when you’re already willing to sign up for an account that pays less?

12. A bank has the right to pay itself back out of your next deposit for any fees or overdraft loans that you owe.

13. Sorry, we can’t afford to give out free toasters anymore to new customers. Business is brutal.

Interviews by Neena Samuel

Sources: David Bach, author of Fight for Your Money (spring 2009); Jason Zweig, author of Your Money & Your Brain (2007); Jean Ann Fox, director of financial services, Consumer Federation of America; anonymous bank employees in New York, Ohio, and Texas

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Homeowners Augie and Emmeline Harrigan of Milford, CT, were able to re-do their entire kitchen for $6,000. Here are a few of their tips for getting the best deal.

Eliminate shipping costs: Search regional online classifieds like Craigslist and eBay’s new Kijiji site for large items that you can pick up yourself to save on postal charges, says Emmeline. For instance, it can cost as much as $200 to deliver a range bought from an out-of-state seller versus the cost of gas if you buy locally.

Use coupons and rebates: Clip coupons in the Sunday paper. And sign up for e-mail blasts from stores you frequently shop at, says Augie. “Just be selective, because before you know it, your inbox will be full of newsletters touting sales.” Some websites, including FatWallet and GottaDeal.com, also broadcast discounts via e-mail alerts that you can subscribe to.

Compare prices: Shopping.com and BizRate chart online retailers’ prices so you never pay too much. The sites also provide reference for used goods. “When we find an item on Craigslist, we look up the retail price first to make sure it’s a fair deal,” says Emmeline.

Automate the auction: “I’ve never been much for watching and waiting,” says Emmeline, who is impatient with the bidding process on eBay. Instead, have eBay send text alerts to your cell phone when you’ve been outbid, so you can log back in to the site and up the ante.

Sign up for credit card points: Make big purchases with your credit card to earn reward points that can be redeemed for appliances and gift cards from a wide array of stores. Just be sure to pay off the balance before the interest kicks in. “Child-care payments earn us 24,000 Amex points a year, which translates into a $250 Home Depot gift card,” says Augie.

See a slide show of Augie and Emmeline’s High-Style, Low-Budget Kitchen Redo and learn more about kitchen renovation savings.

Store food and water.

Avoid debt.

Build up savings.

Sound like a plan for these tough economic times?

It’s actually the longtime teaching of The Church of Jesus Christ of Latter-day Saints.
“For many years the church has taught the principle of provident living and self-reliance,” said Bruce Priday, president of the Lenexa Stake and church spokesman for the Kansas City, Mo., area.

“With growing unemployment, this is becoming increasingly important,” he said. “I have visited several families who lost work and were able to get through months of unemployment without having to go to the government or agencies for help because they were prepared for the emergency.”

Most Mormon families practice the principle of self-reliance, he said.

Bill and Sandra Bohne, who live in rural Leavenworth County, Kan., are one example.

On their 25 acres is a yellow-sided house, an old barn, two garden plots, a fish-filled pond and about a dozen cows. Two of their four children live at home, and there are two large dogs and a small cat (who keeps the dogs in check).

The gardens have been planted with vegetables, barely visible now. But by summer they will yield tomatoes, peppers, beans, onions, greens, asparagus, watermelon, cabbage, cauliflower and other produce. And there are fruit trees.

The kitchen looks up to date with new cabinets and a cooking island. But five years ago Sandra designed it especially for canning and storage.

The burners can hold large pots, and jars fit conveniently in nearby drawers. Shelves above the sink and counters are neatly packed with jars of fruits and vegetables. Shelves under the stove hold dozens of cook books, recipes and information on gardening, canning, storage and small-scale farming.

In other compartments are pots and machines, like a juicer and a wheat grinder. A refrigerator/freezer is fitted into a wall so as not to take up space in the room.

The basement is a well-organized pantry. Shelves around the room are labeled, with the canned goods, bottles and jars arranged so that older items are in front. Large packages of toilet paper and other household necessities are piled on shelves similar to what one would find at a wholesale store.

“About four times a year, we pull out the old stuff,” Sandra said. “And throughout the year, we share with the two children who are away from home, other families, community food pantries and give homemade canned goods as gifts.”

Creaky steps lead up to the door of the barn. A marker on a beam reads “1901.”
Inside is enough grain to last the family for a year or more. There are at least 50 45-pound buckets of wheat, which the couple bought.

“This is what you need to keep the bugs and rodents out,” Bill said, tapping one of the large plastic buckets. “And we use a lot of the No. 10 cans for storing grains, sugar and dehydrated fruits and vegetables.”

“There’s the Bishop’s Storehouse in Kansas City where you can buy staples and do dry-pack canning,” he said.

Sandra said they are not survivalists, who think the worst is going to happen.

“But after Katrina, my mom and sister came and lived with us from New Orleans,” she said. “We know if there’s a huge natural disaster, the government will not get there in the first 48 hours.”

“You can’t help others if your shelves are empty,” Bill said. “If I lost my job or if we had another emergency, we are prepared. Also, it’s a spiritual thing because our church teaches us to provide for our family and others. If I lost my job, how would I feel if I couldn’t feed my family? What does that do to my integrity if I know I can’t take care of my family?”

Priday learned the lesson from his parents. He grew up in Utah where he was the youngest of eight children. The family gardened, canned and maintained a basement storage room.

Emily Bohne, 17, left demonstrated a juicer that she has operated from a very young age, as her mother Sandra watches, during a tour of their home in Leavenworth, Kansas. Photo: Shane Keyser, Kansas City Star
 

“My parents grew up during the Depression,” he said. “Both grew up on farms, but they were able to weather the storm because of their families’ food storage programs. They never had to get any assistance.”

On the Bohnes’ land, the cows come to the fence when called. The family names them but is pragmatic about their function. The calves are food and income.

“It’s the circle of life,” said Emily Bohne, 17, “like the ‘Lion King.’”

Often, the family’s gifts are tied to their lifestyle. For example, one year Bill received a grape vine for Father’s Day. In the summer the family makes juice, and in the winter, jelly.

“Bill has won prizes for his juice and jelly at the county fair,” Sandra said proudly. “I think everybody uses the basic recipe. It’s the grapes that make the difference.”

Emily said she never minded the work involved in helping to tend the garden and to can.

“When you’re younger, it didn’t seem like a chore. I especially liked working the juicer,” she said, vigorously demonstrating how to use the plunger and turn the handle on the machine.

“I thought everyone knew how to do canning. I thought it was normal and was surprised to find out that my friends at school had never done it.”

The same with the friends of daughter Laura, 20. They would visit and ask if they could help.

“They thought this was a fun thing, but I didn’t,” Laura said with a laugh.

But now she is pleased that she knows how to do it.

The Bohnes also follow their church’s teachings on finances.

“We’re debt-free, the property and cars paid for,” Bill said. “We also are encouraged to have a year’s supply of money, clothing and fuel.”

Priday said the church counsels members to avoid unnecessary debt, to use a budget and to live within their means, first starting with paying tithes and building up financial reserves.

“We are less affected by what is going on in the economy,” Sandra said. “We don’t have debt to worry about and don’t have food to worry about.

“This lifestyle brings peace of mind.”

The LDS church traces its principle of provident living to Jesus’ teachings on helping others and serving the poor.

“The idea is trying to live selflessly and think about other’s needs and being self-reliant and taking care of oneself, family and neighbors,” Priday said.

The story is told of how Brigham Young, leading the first group of pioneers, planted gardens as they traveled across the country to what is now Salt Lake City.

“They planted gardens, knowing that other pioneers would follow them,” Priday said. “And they were able to enjoy the vegetables planted by the original pioneers, and other pioneers would add to the gardens.”

Many Mormon congregations and regional groups, called wards and stakes, respectively, present classes and workshops on self-reliance.

Earlier this month, Bill and Sandra organized a free workshop for the wider community called, “Living Well in Hard Times.” Experts spoke on a variety of topics, such as “What to Do When Income Drops,” “Dealing With Creditors,” “Planning a Victory Garden,” Home Food Storage” and “Domestic Animal Care.”

Sandra also gives private instructions and answers questions from people who e-mail her at bohnegardens@lvnworth.com. She has taken the master gardeners course offered by Kansas State University. The couple also shows people how to put together a water purification kit. 

Priday said that along with provident living, the church teaches the importance of taking care of oneself physically, emotionally and spiritually.

“If we are not taking care of ourselves physically, we are not in a position to help others,” he said. “For emotional and spiritual strength, we need to exercise faith and obey the commandments, pray daily and study the Scriptures and serve others.

“If we don’t have faith and are not serving others and drawing on the power of God, we are not being successful parents and disciples in serving other people.”

Beth A. Wright, “Our Community Garden,” Ensign, Jun 2009, 38–39

I had always wanted a garden, but with no yard I didn’t think it would be possible.

My first real taste of gardening came at a young age, as I helped my grandparents with their gardens. I loved roaming outside and enjoyed what we planted. I knew that someday I would want a garden of my own.

In time I married and began a family. I heard prophets and apostles counsel members to plant gardens, and I longed to do so. However, we lived in a small townhouse complex and had no room for a garden. I continued to learn about plants and to admire other people’s gardens, usually with a wistful sigh in my heart.

About this time, our young family faced some serious financial strain. Neighboring families were facing similar difficulties, although for varying reasons. But in the midst of our struggles, the Lord provided a great opportunity for us to combat the challenges.

The man who owned the large open field behind our complex had tried to sell the property but had been unable to do so. Since it was vacant and not likely to sell in the near future, he gave our family and neighbors permission to use his field to plant a community garden. We did not have the equipment to till the land, but our Relief Society president’s husband offered to till the ground for us with his equipment. The generosity of these men touched my heart.

We all became excited about the prospects of a garden. We met together to determine the needs of the participants and how much we needed to plant. We inventoried the equipment and materials we already had and then pooled our money to purchase what we lacked. With much anticipation we plotted and planted our garden.

The soil proved to be rich, and new plants sprang up quickly, providing great hope to those participating in our garden project. But as large weeds soon filled our garden, maintenance became particularly challenging. The work was grueling. My knees and back ached after I spent only a few hours working. As it became increasingly difficult to keep up with the demands of our large garden, I began to feel overwhelmed about the amount of work before us. In these moments I tried to remember the taste of homegrown vegetables I had enjoyed in years past, and that—along with the prospects of helping to feed our family—was enough to keep me going.

Little by little I found that the more time I spent in the garden, the more positive my attitude became. I found myself rising early each morning, eager to get out in the garden and work in the soil. The burden I had formerly felt was slowly replaced with a renewed sense of independence in helping to provide sustenance for our family.

As I cultivated a love for gardening, I was surprised to find I had also cultivated better friendships. While the garden did not eliminate all of our problems, it did help tremendously with grocery bills. I enjoyed the time I spent working alongside my neighbors, away from the distractions of everyday life and united in a cause. We felt gratified observing our progress and eventually harvesting the results of our hard work.

In our time of great need, the Lord provided a way for us to follow the counsel we had received from His prophets. Following that counsel protected our family and provided for our needs—physical, emotional, and spiritual.

A Means of Self-Reliance

“An almost forgotten means of economic self-reliance is the home production of food. We are too accustomed to going to stores and purchasing what we need. By producing some of our food we reduce, to a great extent, the impact of inflation on our money. More importantly, we learn how to produce our own food and involve all family members in a beneficial project.”

President Ezra Taft Benson (1899–1994), “Prepare for the Days of Tribulation,” Ensign, Nov. 1980, 32.

Kay Przybille, “Stretching Your Dollars,” Ensign, Jun 2009, 36–37

We can stretch our dollars by eating home-cooked meals, looking for bargains, and establishing a budget.

As a wife who was blessed to be able to stay home with our children, I felt it was my responsibility to make my husband’s paycheck go as far as possible. In order to have the Spirit to guide us in making wise financial decisions, we always paid our tithing. In addition, we set aside money each paycheck so we could pay cash for emergencies, thus avoiding the extra cost of interest.

Here are some other ideas that have helped our family financially.

Cooking from Scratch

Food prepared from scratch costs about half the price of restaurant fast food—and much less than food from a nice restaurant. Buying basic foods in bulk; planting a garden and using vegetables from it; and avoiding snack foods, partially prepared foods, and instant foods can further increase your savings on meals prepared at home.

Frugal fare, however, doesn’t mean that meals have to be boring. We often make special meals in our home. We have cooking contests, ethnic suppers, and Dad’s dinners—prepared by, not for, Dad. Occasionally our children prepare “restaurant dinners” for my husband and me that include menus, fancy dishes, and personal service. We’ve eaten meals in nearly every room of the house, we’ve had meals sitting on the floor, and we’ve enjoyed picnics outside.

Cutting Back

Cutting back on activities outside the home saves money, gasoline, and time. Cutting back also gives the Spirit greater opportunity to bless our families. Elder M. Russell Ballard of the Quorum of the Twelve Apostles said, “Be wise and do not involve children or yourselves in so many activities out of the home that you are so busy that the Spirit of the Lord cannot be recognized or felt in giving you the promised guidance for yourself and your family.”1

Organized sports, dance, and other programs are great, but consider waiting to involve your children until they are older, when they can help pay the costs and understand the financial sacrifices involved. Meanwhile, teach cooperation, sportsmanship, fair play, and teamwork at home—with Mom and Dad as coaches.

Instead of hiring professionals to teach your children skills and hobbies, consider doing so yourself or calling upon neighbors or extended family members. Teach your children skills that will help the family now—and help your children later—to save money and generate independence. My father taught our son carpentry one summer; another summer my mother helped me teach our daughters how to bottle and freeze vegetables.

Trade lessons with other families. Perhaps while you give your neighbor’s children art lessons, your neighbor could give your children music lessons.

With time and dedication, a mother can give her children a rich preschool experience. Consult the Internet for ideas, and use your local library. Using the library is a great way to save money. Rather than buy books, CDs, and movies, check them out from the library.

I have found that I can forgo chocolate bars, restaurant food, acrylic fingernails, and costume jewelry if, instead, I am going to get a new dinner table that will delight our family for years to come. Sacrificing and saving for something ensures that it is worth having and caring for. Buying impulsively, however, clutters your life with things that don’t mean anything after a short time—things you end up giving away or selling at a garage sale.

Children benefit from saving for what they want. It is easier for them to resist fads and fashions if they have to sacrifice.

Bargains and Budgets

You generally don’t have to pay full price for most products if you are patient. Things go on sale all the time. Sometimes waiting as little as a week or two can mean as much as 50 percent off the retail price. Fight the temptation to buy the newest popular items that are selling too fast. Wait until the demand diminishes, the price drops, and the novelty wears off. By then you may not even want the item.

Use secondhand items. A little work on a good piece of old furniture will make it a delight for a lifetime. A secondhand outfit featuring a classic design can keep you looking nice for several years. My daughters started a counterfashion in their high school by getting their friends enthused about secondhand outfits. That enthusiasm soon spread to a large group of students.

If you do buy new, consider lower-priced items. The quality of such items is often adequate, and you need not pay for frills that aren’t worth the added price.

Fight the temptation to use your charge card. Resist salespeople trying to sell you items you don’t need and can’t afford. Avoid mulling over television programs and magazine and newspaper ads that tempt you to want a richer lifestyle. Set a budget and stay with it. Work and save for what you need, but be content with what you have—and share it if you can.

“Our pioneer forebears lived by the adage ‘Fix it up, wear it out, make it do, or do without,’” said President Gordon B. Hinckley. “Reasonable debt for the purchase of an affordable home and perhaps for a few other necessary things is acceptable. But from where I sit, I see in a very vivid way the terrible tragedies of many who have unwisely borrowed for things they really do not need.”2

May we put the kingdom of God first in our families (see Jacob 2:17–18; Matthew 6:33). And may we remember that the Lord, who multiplied the loaves and fishes, has promised that “all things shall work together for good to them that walk uprightly” (D&C 100:15).

“Power Tools for Family Finances,” Ensign, Jun 2009, 34–35

Use them to demolish debt and build a strong financial future.

The First Presidency has counseled: “Pay off debt as quickly as you can, and free yourselves from this bondage” (All Is Safely Gathered In: Family Finances, 2). But how do you do that when your financial house is shaky and you seem to spend all your time and energy just trying to hold it together?

Here’s how one couple might tackle the challenge using some simple but powerful tools available to everyone. “Ruth” and “Elliot” are a composite of many real couples who have used these tools successfully. They have a mortgage balance of $223,345, credit card and retail store debt totaling $8,456, and an $11,465 car loan. They currently spend $25,836 per year on debt payments. Paying off their debts at the current rate will take 25 years. Tired of the strain of juggling bills and feeling no control over their situation, they turn to their bishop, who suggests they visit www.providentliving.org.

First, Ruth and Elliot use the chart on page 7 of One for the Money (see fig. 1) to create a family budget. In the process, they see expenses that could be eliminated, such as the money Elliot spends each day on soft drinks and snacks at work. They quickly identify $100 per month that could be better spent.

Next, they enter current debt information into the How Soon Could I Pay off All My Debts? calculator (see fig. 2). It shows how funds that are freed up when one debt is repaid can be used to pay down remaining debt. The results are dramatic. Without paying one dollar more per month, they could pay off all their debts in 15 years, 10 years sooner than they would have otherwise (assuming their income remains stable and they incur no additional debt).

Using the same calculator, they now add that $100 per month of misspent money as an extra monthly payment. The result: they will be able to pay off all debt (mortgage included) in just under 14 years. This cuts an additional year off their payoff time. They would save 11 years of payments and $209,392 in interest.

Now Ruth and Elliot wonder: When they no longer have debt payments to make, what would happen if they put the equivalent into savings and added that $1,200 per year of misspent money? To find out, they use the How Much Could I Have If I Saved Regularly? calculator (see fig. 3). Here they enter savings goals based on reasonable assumptions.

What they find both shocks and motivates them. They realize that they will not only save 11 years of debt repayment and $209,392 in interest paid, but could have $429,060 in the bank at the end of the originally scheduled 25-year repayment plan.

Ruth and Elliot may be fictitious, but their situation is reality for many. Details will differ. Some people earn more money, some earn less. Some owe much more money, some people owe much less. No matter. These concepts and tools have universal application.

To access these financial tools online, go to providentliving.org or ensign.lds.org.

Allie Schulte, “Focus on Family Finances,” Ensign, Jun 2009, 28–33

Either we control our finances or they control us. Here’s how to get the upper hand.

Jason and Alanea Hanna faced many financial questions when Jason lost his job. Should they relocate and find another job? Should they try to find a job where they were currently living? After considering several options, they asked the most important question of all: “What would the Lord have us do?”

“We studied talks by prophets and apostles on topics like debt, budgeting, and saving to try and figure out what the Lord wanted us to do,” Alanea explains. “We knew that the Lord’s plan was the best plan and that we would be blessed if we followed it.”

After prayer and contemplation, Jason and Alanea both decided to return to college and finish their bachelor’s degrees. They took out minimal student loans to pay for their education, and both worked full-time to provide for their other expenses. They coordinated their work schedules to ensure that one of them was home with their children. They budgeted carefully, spending their money on the essentials and eliminating fast food, cable TV, and new clothes. Jason even rode his bike to school and work to limit the costs of gasoline and car insurance.

Now Jason works as an engineer. Alanea also completed her degree and is currently fulfilling her responsibilities as a full-time mother of five children. They still live within their means, budget carefully, pay tithing, and live according to the financial counsel of Church leaders. “We’re grateful for the trial and the experience,” Alanea says. “It ended up being a great blessing in our lives and taught us that the Lord will always bless us if we are obedient.”

The Lord’s Financial Plan

The Lord has told His Church, “Ye are not of the world, but I have chosen you out of the world” (John 15:19). Although members may be faced with financial trials, they can feel secure as they turn away from the philosophies of the world and rely on the gospel of Jesus Christ and the counsel of Church leaders.

In the pamphlet All Is Safely Gathered In: Family Finances, the First Presidency asks all Church members to consider their finances and strive to become more spiritually and temporally self-reliant: “We encourage you wherever you may live in the world to prepare for adversity by looking to the condition of your finances. … If you have paid your debts and have a financial reserve … , you and your family will feel more secure and enjoy greater peace in your hearts.”1

The pamphlet outlines five basic principles: pay tithes and offerings, avoid debt, use a budget, build a reserve, and teach family members. While living these principles requires patience, temperance, and sacrifice, obedience to the Lord’s financial plan will bring greater peace and joy than individuals and families could ever experience by living the way of the world.

Pay Tithes and Offerings

When Richard Moyer lost his job, he and his family ate food from their home storage, paid bills using their savings, and continued to pay tithing faithfully. Despite his unemployment, Brother Moyer was amazed to see that he made exactly U.S. $1.00 more income that year than the previous one. “I have always attributed that miracle in our lives to paying tithing,” Brother Moyer explains. “The Lord always blesses you when you do the things He wants you to do.”

Blessings that come from sound family finances must be built on the foundation of paying an honest tithe and giving a generous fast offering. Church members have the opportunity of giving back to the Lord a portion of their income with the understanding that their contributions help to build the kingdom of God by building meetinghouses and temples, providing for those who are less fortunate, and sharing the gospel throughout the world.

Members will gain a testimony of this principle by living it. By praying to understand its importance and learning more about how these contributions bless others, members will come to consider paying tithes and offerings a blessing. As members develop the habit of immediately setting aside tithes and offerings when they receive income, it will become a financial priority in their lives.

President N. Eldon Tanner (1898–1982) of the First Presidency taught that tithing is a commandment with a promise: “As you discharge this obligation to your Maker, you will find great, great happiness, the like of which is known only by those who are faithful to this commandment.”2 Obedience to this commandment brings peace and security. As Church members pay tithes and offerings they will experience miracles in their lives, as the Moyer family did.

Avoid Debt

Spending less money than you make is essential to financial security. Elder Joseph B. Wirthlin (1917–2008) of the Quorum of the Twelve Apostles taught that consumer debt is a form of bondage that affects individuals, both temporally and spiritually. He said, “We think we own things, but the reality is, our things own us.”3 For this reason, the First Presidency encourages members to avoid debt with the exception of buying a modest home or paying for education.

The Kloosterman family has enjoyed the blessings of being free from the bondage of debt. When Kevin Kloosterman was called as the bishop of his ward in Illinois, USA, his family had some consumer debt. His stake president reminded him of the First Presidency’s counsel, and Bishop Kloosterman left the interview determined to pay off the debt. “We had always … tried to put the Lord first,” he recalls. “In this one case, we hadn’t.”

The Kloosterman family studied the scriptures and modern-day counsel related to finance and debt and took the steps necessary to achieve their goal. It became clear that they were being blessed by the Lord for heeding the counsel of His servants. “There is no affliction in mortality which the Savior cannot heal,” Bishop Kloosterman says. “If He can deliver us from the captivity of sin and death, He can certainly deliver us out of financial bondage.”

If Church members are in debt, they should pay the debt off as quickly as possible. A debt-elimination calendar is a great tool to help individuals create a specific plan to become debt-free. After creating a plan, members can make it a priority by making their necessary payments immediately after paying tithes and offerings. Above all, members should be patient with the time it may take to become debt-free by relying on the Lord for help and striving to follow His commandments.

Use a Budget

Another tool to help members live within their means is a budget. While individuals often think that financial security depends on the amount of money they make, President Tanner taught that controlling how money is spent—whether the amount is large or small—is the source of true financial peace and happiness. “Many people think a budget robs them of their freedom. On the contrary, successful people have learned that a budget makes real economic freedom possible,”4 he said.

The Jeffrey family, from Illinois, USA, recognizes the freedom that comes from managing their finances with a budget. When the Jeffrey children were very young, the family realized that three of them would be serving missions at the same time. Recognizing the financial strain this would place on the family, their mother, Olga, implemented a strict budget. Along with paying 10 percent of the family’s income to tithing, Sister Jeffrey set aside an additional 10 percent to save for her future missionaries. “I realized that finances could become a stumbling block and that we needed to be prepared to provide the means for our children to serve the Lord,” Sister Jeffrey says.

As the Jeffrey children began leaving on missions, their parents were financially prepared, and the Lord blessed them.

Like the Jeffrey family, Church members can manage their spending by creating a budget. Using a budget worksheet, members can look at their income and spending from the last week or month. By determining where they spend most of their money, they can also look for ways to cut back. Then they can create a budget by estimating income for the next week or month and planning where they want their earnings to be spent. After tracking their spending, members can evaluate whether they complied with the budget and make adjustments for the next week or month.

Build a Reserve

Even when individuals seem to be financially prepared, unexpected trials such as illness, unemployment, or major repairs can cause financial burdens. The First Presidency encourages Church members to prepare for these events by gradually building a financial reserve to be used for emergencies only. Saving a little money regularly, especially in times of prosperity, will help members to prepare for times of financial struggle or unforeseen emergencies.

Elder L. Tom Perry of the Quorum of the Twelve Apostles suggests that “after paying your tithing of ten percent to the Lord, you pay yourself a predetermined amount directly into savings. … 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.”5

While planning a budget, members can also determine a specific amount of their earnings to set aside for savings. It does not need to be a large amount. As long as they are consistent in setting aside that money, it will add up quickly. Develop the habit by putting the money into savings immediately after paying tithes and offerings and making payments on any debts. Do not be tempted to spend savings on unnecessary things. Instead, reserve them for emergencies. If Church members strive to discipline themselves, they will be prepared for financial trials. Once they have established a financial reserve, they can continue saving for future needs like missions, education, retirement, and other necessities.

Teach Family Members

Often parents feel hesitant in involving their children in financial matters. However, when we teach family members the principles of financial management and involve them in creating a budget with financial goals, we prepare them for their futures. Elder M. Russell Ballard of the Quorum of the Twelve Apostles counseled, “Parents need to teach children very early that a solid financial base is a very important element in a happy home.”6 As members prayerfully study and ponder the principles in the All Is Safely Gathered In: Family Finances pamphlet, they should think of ways to teach family members and help them to live these principles.

Parents can involve family members in creating a budget and setting financial goals. They can teach them the importance of working for an income, prioritizing their spending, and preparing their own budget to track expenses. They can also provide a way for them to pay tithing and to save money for missions, education, or other expenses. Family home evenings can be great opportunities to discuss and teach about financial topics. Each family member can contribute to the family’s overall self-reliance, and the entire family will recognize the blessings that come from following the Lord’s counsel for financial planning.

Blessings of Family Finances

The message of financial preparedness is not new. In this dispensation, Church leaders have encouraged members to prepare themselves by wisely managing their finances and have promised blessings to those who follow this counsel. The First Presidency said: “Latter-day Saints have been counseled for many years to prepare for adversity by having some money set aside. Doing so adds immeasurably to security and well-being.”7

Families and individuals, both past and present, have witnessed the blessings of peace that result from their obedience to this counsel. As Church members follow the specific guidelines inAll Is Safely Gathered In and utilize the other financial counseling the Church offers, they too will experience these blessings in their lives.

Additional Resources

The Church has provided online resources in English, German, Portuguese, and Spanish to help members manage their family finances. Resources include talks by Church leaders, financial calculators, materials for family home evening lessons, and even an online financial course. For more information, please visit providentliving.org.

The pamphlet All Is Safely Gathered In: Family Finances is available online in 24 languages at providentliving.org/content/display/0,11666,7587-1-4087-1,00.html.

Photographs by Robert Casey

The example he gave me was a popular business text book that is required reading for his class. He looked up the book on Amazon and located the ISBN number. He then entered the number and the words “international edition” into a search engine like Google or Yahoo. The results pulled up places where you can purchase the international version of the text book online. The cost savings in the exmaple he gave me was pretty significant (book cost in the $160 range on Amazon and the international edition cost around $70, including shipping — a savings of over 50%!).

My friend said that most international editions are the same as the domestic editions, so you should be fine going with the international version. And with the kind of savings you can get, it’s worth the extra minute or two to do a search online for it.

Before I buy my next book for school, I’m going to try out this strategy. Curious if anyone else has done this?

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