Why Should We Learn about Family Finance?

             Parents can strengthen their family, community, and nation by understanding the why, what, and how of family finance. As parents gain understanding, they should then teach the material to their children.

According to E. Jeffrey Hill and Bryan L. Sudweeks in their book titled Fundamentals of Family Finance, family finance is viewed through one of two perspectives. Either we have an eternal perspective, or we have a worldly or materialistic perspective. Along with the authors, I choose the eternal perspective and will share their ideas about how we should think about money.

The authors ask three questions – why, what, and how. They give four answers to the first question “Why should I learn about family finance?” Their reasons fall into four specific areas of life: (1) “Spiritual – to bring you to Jesus Christ.” (2) “Temporal – To help you become a wise steward.”         (3) “Individual – To accomplish your divine mission.” (4) “Family – To return with your family back to Heavenly Father’s presence.”

The second question is “What are the profound principles upon which this stewardship perspective is based.” The authors’ answers include the following principles: (1) Ownership (Everything we own belongs to God.) (2) Stewardship. (Because God owns everything, we are stewards who are expected to use the resources to meet our individual and family needs and consecrate the remainder to blessing God’s children.) (3) Agency (God gave us agency while we lived in the pre-mortal world, and we brought this gift with us when we were born.) (4) Accountability (God will hold us accountable for how we use our earthly belongings).

The authors put special emphasis on accountability with the following statement: “The first three principles outlined above are God’s gift to you. The fourth principle of accountability, if followed wisely, can be your gift back to God. You will be required to give Him an account of your stewardship over the blessings you have received” (Hill & Sudweeks, 2016, p. 6).

The third question is “How can I practically apply family finance in my life?” The authors wrote, “An eternal perspective will help you know how to apply family finance principles. You must build your financial house upon the rock of the gospel of Jesus Christ” (Hill & Sudweeks, 2016, p. 6).

The authors suggest the following eight practices: “(1) Pay the Lord first in tithes, fast offerings, and other contributions. (2) Create, use, and update a budget. (3) Minimize and eventually eliminate debt. (4) Prepare for emergencies and build a reserve. (5) Invest early, consistently, and wisely. (6) Protect yourself and your family through adequate insurance. (7) Share finances as equal partners in your marriage. (8) Teach your children and family about finances.”

            Parents should learn the why, what, and how of family finances because the knowledge will help them to become better stewards of God’s gift to them and their family. The authors closed this chapter with the following statement:

Remember this: With every dollar you spend, you choose which perspective you will take – either the eternal perspective or the world’s materialistic perspective. The sooner you understand that managing our finances is part of living the gospel of Jesus Christ, the greater your motivation will be to obey the commandments and get our financial house is order….

            Wise parents will choose to have an eternal perspective and make God a full partner in their family finances. By learning about family finances and teaching what they learn to their children, parents can strengthen their family, community, and nation.