Debt Reduction

If you type the word debt into the search bar on The Church of Jesus Christ of Latter-day Saints website [LDS.org] more than 400 matches are found. Debt is a danger that the Church is constantly warning its member about. President Gordon B. Hinckley has said:

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 (“I Believe,” Ensign, Aug. 1992, 6).

The concern about debt is mostly centered on the fact that it can destroy families. In 1975, Apostle Marvin J. Ashton gave a talk in General Conference about debt. In that talk he said the following:

How important are money management and finances in marriage and family affairs? May I respond, ‘Tremendously.’ The American Bar Association has indicated that 89 percent of all divorces can be traced to quarrels and accusations over money. Others have estimated that 75 percent of all divorces result from clashes over finances. Some professional counselors indicate that four out of five families are strapped with serious money problems. (Marvin J. Ashton, “One for the Money,” Ensign, July 1975, 72).

These figures are from 1975, and the problem with debt has only worsened. This talk has been made into a booklet entitled "One for the Money: Guide to Family Finance" and is used as the basis for teaching families and members in the Church about debt reduction.

In the pamphlet, there are 12 suggestions on ways to help your family and your children avoid debt. The first is to teach children the importance of work. The second is to teach them about money in a way that they can understand. Children need specifics; don’t just tell them “you should save your money.” Use experiences to teach them, if a child wants something help them understand that they can get it by saving their money. As children grow into adults they all know that they should save money but if they had money saving experiences as a child, they have a much better chance of being able to actually do it. The third suggestion is to teach children to contribute to a family goal.

The next four suggestions focus on self-discipline and integrity. Pay your bills on time and make sure that your children understand that this is the honest thing to do. Families should also focus on having good money management; restraining impulse buys for the good of the family, and make a budget and sticking with it.

The next five suggestions are in place to help members ensure that they will continue to be able to provide for their families and not continue the cycle of debt. These are to get as much education as possible, strive to own a home, have a good insurance program, learn how to deal with and understand inflation, and to build-up and maintain a food storage.

For More Information

For more resources to help you manage your finances visit the LDS Church's website Provident Living

For a free copy of "One for the Money: Guide to Family Finance" visit www.ldscatalog.com and look under Welfare Services: Pamphlets, Booklets, and Brochures.