Riverton Regional Welfare Training Meeting

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• Riverton Regional Welfare Training Meeting
• Personal Finance
• On Leading and Teaching Others
• April 23, 2009
• Bryan Sudweeks, Ph.D., CFA
• From the BYU Marriott School of Management
  website
• Personal Finance Another Perspective
• at http//personalfinance.byu.net

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Abstract

• We have a sincere desire to help others who
  are having difficulties with personal finance.
  As we work to serve and help them, we can serve
  even better if we understand and live key
  principles. This presentation will discuss what
  we need to know as leaders, what we need to do to
  teach our trainers, and how we can best use the
  available tools to accomplish the goal to help
  our members become more financially self-reliant.
  Financial self-reliance isnt about moneyits
  about faith.

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Objectives

• Objectives for this evening are
• A. Understand what we as leaders need to know
  about personal finance
• B. Understand what we as leaders need to do to
  teach our trainers
• Understand how we as leaders can best use the
  available tools to accomplish these goals
• Understand what wise stewards know

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A. Understand What We Need to Know as Leaders
About Personal Finance

• There are four key areas of personal finance that
  are important for leaders to know
• 1. Its about faith
• 2. Principles are critical
• 3. Money matters are spiritual matters, and
• 4. Finances are a shared responsibility

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1. Its About Faith

• In most cases, financial problems are behavioral
  problems, not money problems
• We know what we should do live on a budget,
  spend less than we earn, not go into debt, build
  a reserve, etc.
• But ignorance, carelessness, compulsiveness,
  pride (and perhaps necessity) get in the way
• For most, it is not a question of knowledge, but
  of motivation
• How do we motivate our members to make better
  financial choices?

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Its About Faith (continued)

• Elder Boyd K. Packer gave us guidance when he
  stated
• True doctrine, understood, changes attitudes and
  behavior. The study of the doctrines of the
  gospel will improve behavior quicker than a study
  of behavior will improve behavior. (Boyd K.
  Packer, Little Children, Ensign, Nov. 1986,
  16.)
• Once we realize the doctrine that God has
  commanded us to do these things, i.e., live
  within our means, get out of debt, build a
  reserve, and teach our children, etc., we then
  see that financial problems are not problems of
  money, but problems of faith

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2. Principles are Critical

• 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)
• Its not about ownership, its about principles

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Principles are Critical (continued)

• Four principles are critical to personal finance
• 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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Principles are Critical (continued)

• 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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Principles are Critical (continued)

• 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)

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Principles are Critical (continued)

• 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)

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Principles are Critical (continued)

• On 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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3. Money Matters are Spiritual Matters

• Money matters are spiritual matters because
• 1. All things are spiritual
• 2. Money is a medium of exchange
• 3. Money is a tool
• 4. There is no true freedom without financial
  freedom
• 5. The Lord wants (and will help) us to be wiser
  financial stewards

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Money Matters (continued)

• 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
• Money is a tool to teach us many things,
  including the gospel principles of sacrifice,
  discipline, law of the harvest, giving, 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 worthy 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 an addictionanother one of Satans
  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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4. Finances are a Shared Responsibility

• Some think money matters are a priesthood
  responsibility and not a womens responsibility
• They think if women become knowledgeable about
  financial matters, their spouses will be upset
• If spouses make the moneydont they get to
  decide where it goes? (isnt this unrighteous
  dominion)
• However, since women live longer than men, are
  more conservative in their investments, and have
  less saved for retirement (due to working in the
  home), shouldnt they be equally (and perhaps
  even more) responsible!

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A Shared Responsibility (continued)

• 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 as they are equal partners in
  spiritual matters

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A Shared Responsibility (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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A Shared Responsibility (continued)

• We as leaders cannot control how our members
  spend their resources
• However, we have a shared responsibility to help
• We can help teach faith and obedience
• We can help teach correct principles
• We can help teach these are spiritual matters
• We can help by living the principles that we
  teach
• We can help them come closer to our Savior and to
  be wiser financial stewards

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B. What Do We Teach our Trainers?

• There are three things we must teach
• a. What are the resources available from the
  Church?
• b. What are the resources available from
  Church-related organizations, such as the BYUs
  Marriott School of Management Personal Finance
  website?
• c. What are the resources available from other
  organizations?

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Teaching our Trainers (continued)

• a. Understand available Church resources
• Go to the church website at www.lds.org
• Click on Home and Family, Family Finances
• 1. Read and understand the pamphlets All is
  Safely Gathered In Family Finances and One for
  the Money
• 2. View the online lesson Online Financial
  Course Peace in Your Hearts
• 3. Read the Family Finance Lesson Materials
• 4. Read the quotes and talks from Church Leaders

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Teaching our Trainers (continued)

• b. Understand Church-related resources
• One good resource is the BYU Marriott School
  website at http//personalfinance.byu.edu
• There are various courses, manuals, family home
  evening lessons, and other tools and resources
• Begin with the 8 Basic Lessons on Principles of
  Financial Self-Reliance
• Look through the other courses
• Feel free to read and download the manuals,
  Family Home Evening lessons, PowerPoint
  presentations, Learning Tools, and other
  resources

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Teaching our Trainers (continued)

• Church-related resources include
• 1. Budgeting spreadsheets in multiple languages
  (Teaching Tool 31 - currently available in
  English, Spanish, Tagalog, and Chinese)
• 2. Lesson Plans, Readings, Spreadsheets and
  Family Home Evening Lessons for eight topics
• 1. Understanding Wealth, 2. Setting Goals, 3.
  Understanding and Eliminating Debt, 4. Planning
  your Spending A One Year Plan, 5. Planning Your
  Spending A One Month Plan, 6. Building a Reserve
  and Avoiding Scams, 7. Learning to Give Tithes
  and Offerings, and 8. Teaching your Children
  Financial Responsibility

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Teaching our Trainers (continued)

• 3. Eight different free manuals for High School
  students, College Students, Young Married
  couples, Returned Missionaries, and the Complete
  College Course which is used at BYU in the
  undergraduate and graduate courses
• 4. PowerPoint presentations which are used in the
  current undergraduate and graduate classes at BYU
• 5. Seminars to teach how to use the website
  spreadsheets and tools. The next seminar is
  April 29, 2009 at 7 p.m. in room 240 TNRB
• In short, a wealth of information to help you in
  your calling to help others with their personal
  finance

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Teaching our Trainers (continued)

• C. Understand other resources
• There are a number of other sources of
  information on personal finance that are useful.
  A few include
• U.S.  Financial Literacy and Education
• http//www.mymoney.gov
• Federal Depositors Insurance Corporation (FDIC)
• http//www.fdic.gov/consumers/consumer/moneysmart/
  index.html
• Federal Reserve Board
• http//www.federalreserve.gov/consumers.htm
• The Jumptart Coalition for Financial Literacy
• http//www.jumpstart.org

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Understand How to Best Use the Available Tools

• 1. Teach by the Spirit
• These are not your members, but the Lords
  children
• He knows how to help them
• Seek His help and listen
• Realize the answers may be different from family
  to family
• Study, prepare, pray, and listen
• He will teach you, but in His way and in His time
• You must seek His help in teaching His children

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Use Available Tools (continued)

• 2. Live what you teach
• You cannot lift another unless you are standing
  on a higher level. Sister Elaine S. Dalton
  recently counseled
• You cant lead unless you are out in front. . .
  You cant ask others to do something if you
  arent doing it. We have got to be leaders that
  do the things we are asking everyone else to do.
  (Leading Others by being out in front, LDS
  Church News, April 18, 2009, p. 14.)
• You must live what you teach to be effective

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Use Available Tools (continued)

• 3. Teach the doctrine
• Elder Boyd K. Packer stated
• True doctrine, understood, changes attitudes and
  behavior. The study of the doctrines of the
  gospel will improve behavior quicker than a study
  of behavior will improve behavior. (Boyd K.
  Packer, Little Children, Ensign, Nov. 1986,
  16.)
• What are the doctrines underscoring what you are
  teaching?
• We all know what we should do. Doctrines supply
  the motivation to help us do what we need to do.

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Use Available Tools (continued)

• 4. Teach from the pamphlet All is Safely
  Gathered In Family Finances.
• These are the five basic areas that Church
  Leaders feel each individual and family should
  know and follow. They are
• Pay Tithes and Offerings
• Avoid Debt
• Use a Budget
• Build a Reserve
• Teach Family Members
• This should be your starting points for teaching

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Use Available Tools (continued)

• 5. Teach to the individual
• Seek to understand where they are in regards to
  their financial knowledge, and teach to their
  level of learning. Use different tools to meet
  different needs (http//personalfinance.byu.edu
  is a good start for information)
• 8 Basic Lessons (and advanced ones as well)
• Readings (from Church Leaders, Church lessons,
  and others)
• Budgets (written, spreadsheets, etc.)
• Family Home Evening lessons
• Other personal finance materials

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Use Available Tools (continued)

• 6. Invite diligent learning and application
• President Harold B. Lee counseled
• All the principles and ordinances of the gospel
  are in a sense but invitations to learning the
  gospel by the practice of its teachings. No
  person knows the principle of tithing until he
  pays tithing. No one knows the principle of the
  Word of Wisdom until he keeps the Word of Wisdom.
  Children, or grownups for that matter, are not
  converted to tithing, the Word of Wisdom, keeping
  the Sabbath day holy, or prayer by hearing
  someone talk about these principles. We learn the
  gospel by living it. We never really know
  anything of the teachings of the gospel until we
  have experienced the blessings that come from
  living each principle. (Stand Ye in Holy Places
  1974, 215)
• We dont know the principles of personal finance
  until we live them

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Tools 1 Tools and Resources
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Tools 2 8 Basic Lessons (with lessons, readings,
spreadsheets, handouts, FHE lessons, etc.)
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Tools 3 Multi-language Spreadsheets
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Tools 4 Individual Lessons
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Tools 5 Courses of Study
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Tools 6 Personal Finance Manuals
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Tools 7 Seminars
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D. Understand What Wise Stewards Know

• 1. Wise stewards recognize their stewardship
• They understand the principles of
• Ownership everything they have is the Lords
• Stewardship they are stewards over all God has
  blessed them with
• Agency the ability to choose is a God-given gift
• Accountability they will be held accountable for
  all their choices, including their financial
  choices
• They recognize that nothing they have is their
  ownit is all Gods, and they act accordingly

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Wise Stewards Know (continued)

• 2. Wise stewards have their priorities in order
  
• They seek first the kingdom of God and his
  righteousness
• They know that that the best things in life are
  free families, relationships, and the gospel of
  Jesus Christ.
• Their first goal in life is not wealth, power, or
  gratification, but eternal life with their
  families
• They seek the true riches firstthe kingdom of
  God and the gift of eternal life. Then they seek
  the other riches, if they desire them, but it is
  for the intent to do goodto help and bless their
  families and others

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Wise Stewards Know (continued)

• 3. Wise stewards plan their future early and
  live their plan
• They prayerfully establish their goals, live
  worthy of the Spirit, and with His help achieve
  their goals
• They prayerfully develop a budget, and follow it
  closely. They live on less than they make
• They avoid debt like the plague
• They build a reserve and save for their goals
• They seek Gods help in all aspects of their
  lives, including planning and achieving goals,
  developing and living on budgets, avoiding debt,
  building a reserve, and saving for retirement and
  education

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Wise Stewards Know (continued)

• 4. Wise stewards know it is what they become
• They know that money is a tool to teach
  principles
• They realize it is not what they earn, but what
  they save, that helps them acquire wealth
• But more importantly, they know that its not what
  they save, but what they become, that makes
  them more like their Savior Jesus Christ
• They know that money is only a tool, but an
  important one, in helping them to learn important
  lessons in life and in helping them become more
  like their Savior Jesus Christ

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Wise Stewards Know (continued)

• 5. Wise stewards know money cannot buy happiness
• They know money can eliminate a lot of financial
  and other problems in life
• They know that money can provide security for
  them and their families
• But they know it cannot buy them happiness.
  They must find happiness on their own
• They use money to reduce their financial
  difficulties, to be secure in their families, and
  to bless others. Then they find happiness in the
  gospel of Jesus Christ, in their families, and in
  serving others

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Wise Stewards Know (continued)

• 6. Wise stewards understand assets and
  liabilities
• Assets are things that have value. They are
  either income-generating (investments, savings,
  rentals, etc.) or income-consuming (cars, toys,
  houses, etc.)
• They know their choice of assets will largely
  determine how they will live their lives
• Liabilities are things they have borrowed for
• Except for an education and a home, liabilities
  should be eliminated
• They maximize income-generating assets, minimize
  income-consuming assets, and eliminate
  liabilities

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Wise Stewards Know (continued)

• 7. Wise stewards understand income
• Earned income is income they earn from their job
  or vocation. It is a good type of income
• Passive income is income they earn from their
  investments, generally businesses or real estate.
  They generally need to do work to earn this
  income, but it is less.
• Portfolio income is income they earn from their
  investments. They do not need to do any work to
  earn income from these investments.
• They realize that the best income is not earned
  income, but portfolio and passive income

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Wise Stewards Know (continued)

• 8. Wise stewards know they are responsible
• You were given two great gifts your mind and
  your time. It is up to you to do what you please
  with both. With each dollar bill that enters
  your hand, you and only you have the power to
  determine your destiny. Spend it foolishly, you
  choose to be poor. Spend it on liabilities, you
  join the middle class. Invest it in your mind
  and learn how to acquire assets and you will be
  choosing wealth as your goal and your future.
  The choice is yours and only yours. Every day
  with every dollar, you decided to be rich, poor,
  or middle class. (Robert Kiyosaki and Sharon
  Lechter, Rich Dad Poor Dad, Time Warner Book
  Group, USA, 1998, p. 197)
• They choose to be wise

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Wise Stewards Know (continued)

• 9. Wise stewards know they make a life by what
  they give
• Life is not measured by what they have, but what
  they give
• They learn to give more
• For what shall it profit a man, if he shall gain
  the whole world, and lose his soul? (Mark 836)
• They know there is more to life than money.
• They follow the example of the greatest giver of
  all time, even their Savior Jesus Christ

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Wise Financial Stewards Know (continued)

• 10. Wise stewards remember what God has done
• They remember how much they have been blessed by
  God and strive to do what He wants them to do
• They stay close to the Spirit and do all in their
  power to have faith and be obedient to His
  commandments
• Therefore, dearly beloved brethren, let us
  cheerfully do all things that lie in our power
  and then may we stand still, with the utmost
  assurance, to see the salvation of God, and for
  his arm to be revealed. (DC 12317)
• They do all then can and then have faith in the
  Lord and His plan for them

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Wise Stewards Know (continued)

• In conclusion, wise financial stewards remember
  two thoughts which are representative of their
  futures
• The Lord through the prophet Joseph Smith gives
  the truth of what is ahead when he said
• For verily I say unto you, that great things
  await you. (DC 4562)
• And from Robert Browning comes the thoughtful and
  comforting words
• The best is yet to be (Rabbi Ben Ezra, in
  Charles W. Eliot, ed., The Harvard Classics, 50
  vols. 190910, 421103).

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Review of Objectives

• Our objectives for this evening were
• Understand what leaders need to know about
  personal finance
• There are four key areas of personal finance that
  are important for us all to know
• 1. Its about faith
• 2. Principles are critical
• 3. Money matters are spiritual matters
• 4. Finances are a shared responsibility

54
Review of Objectives (continued)

• Understand what we need to do to teach our
  trainers
• There are three areas we must understand
• a. Resources available from the Church
• b. Resources available from Church-related
  organizations, such as the BYU Marriott School of
  Management Personal Finance website
• c. Resources available from other organizations

55
Review of Objectives (continued)

• C. Understand how we can best use the available
  tools to accomplish these goals
• 1. Teach by the Spirit
• 2. Live what you teach
• 3. Teach the doctrine
• 4. Teach from the pamphlet All is Safely
  Gathered In Family Finances.
• 5. Teach to the individual (using available
  tools and resources)
• 6. Invite diligent learning and application

56
Review of Objectives (continued)

• D. Understand what wise stewards know
• 1. They recognize their stewardship
• 2. They have their priorities in order
• 3. They plan their lives early then live their
  plan
• 4. They know it is what they become
• 5. Money cannot buy happiness
• 6. They understand assets and liabilities
• 7. They understand income
• 8. They are responsible
• 9. They make a life by what they give
• 10. They remember what God has done

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Review of Objectives (continued)

• Teach that the Lords way is not hard. Elder
  Lawrence Corbridge commented
• The Lords way is not hard. Life is hard, not the
  gospel . . . Life is hard for all of us, but life
  is also simple. We have only two choices. We can
  either follow the Lord and be endowed with His
  power and have peace, light, strength, knowledge,
  confidence, love, and joy, or we can go some
  other way, any other way, whatever other way, and
  go it alonewithout His support, without His
  power, without guidance, in darkness, turmoil,
  doubt, grief, and despair. And I ask, which way
  is easier? (Lawrence Corbridge, the Way,
  Ensign, Nov 2008)
• The question is not about moneyits about faith

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Thank You

• I leave you with my love, my excitement in these
  principles, and my testimony of the gospel of
  Jesus Christ
• The materials discussed in this presentation are
  freely available at the BYU Marriott School of
  Management Personal Finance Website at
• http//personalfinance.byu.edu