What Money Means to You
Resource
Auto Loan
Tic-tac-Owe
Early Withdrawal
Prospective Father-In-Law
Credit
Topic : Finances
Top 10 Financial Stresses
| Percentage of families experiencing stress | |
| 1. Money for food, clothing and energy | 45% |
| 2. Purchase of a car, or other major item | 43% |
| 3. Taking out a loan | 31% |
| 4. Children’s education | 29% |
| 5. Problems with family income | 26% |
| 6. Medical/dental expenses | 23% |
| 7. Purchase or construction of a home | 16% |
| 8. Bad investments | 16% |
| 9. Overuse of credit cards | 15% |
| 10. Starting a business | 10% |
What Money Means to You
Rate each of the following statements:
Strongly disagree = 1
Disagree = 2
Uncertain = 3
Agree = 4
Strongly agree = 5
1. It is important to me to maintain a lifestyle similar to or better than that of my peers.
2. In making a major purchase, an important consideration is what others will think of my choice.
3. Since money equals power, I am willing to work hard for money in order to have more power.
4. I really enjoy shopping and having nice things.
5. Saving money for a rainy day is an important principle to live by.
6. If I had a moderate amount of money to invest, I would be more likely to put it into multiple resources that are relatively safe than into one fairly risky source that has the potential to make a lot of money.
7. Being “flat broke” is one of the worst things that could happen to me.
8. Saving for retirement is an important financial goal for me.
9. If I suddenly came into a windfall of $1,000 for something I have always wanted to do or have.
10. Since “You can’t take it with you,” you might as well spend it.
11. Money can’t buy happiness, but it sure helps.
12. Few things in life give me greater pleasure than making a great buy.
13. I like/would like having my own business because I can/could control my own financial destiny.
14. I like being able to make decisions about how to spend the money I earn.
15. It bothers me to be dependent on someone else for money.
16. I feel uncomfortable if someone offers to “pick up the tab” because I feel indebted to them.
Now, add your scores for the four questions in each category. The higher your score, the stronger you identify with that approach.
Category | Questions | Your Score | Your Partner’s Score |
| Money as Status | 1-4 | __________ | _________ |
| Money as Security | 5-8 | __________ | _________ |
| Money as Enjoyment | 9-12 | __________ | _________ |
| Money as a Control over Life | 13-16 | __________ | _________ |
Interpretation of Scores
4 - 8 = low
9 - 12 = Moderate
13 - 16 = High
17 - 20 = Very high
Understanding what it means:
Money as status. People who identify with money as a status symbol are interested in money as power—as a means of keeping ahead of one’s peers.
Money as security. People who use money as a means of security spend conservatively and focus on saving.
Money as enjoyment. People who view money as a means to enjoyment get satisfaction from buying things for themselves and others.
Money as control. People who see money as a source of control, use it to maintain control of their lives, and to remain independent from their partner or other family members.
Now, compare your scores with each other. The closer your scores in each category are, the easier it will be to meet mutual financial goals and needs. The further apart they are, the more negotiating and compromising you’ll have to do.
Resource
- Daniel D. Busby, Kent E. Barber, and Robert L. Temple, “Worry-free money management”, Christian American, January/February 1997, pp. 40-42
Auto Loan
Loan Officer: “Based on your credit history, it seems the only kind of loan you qualify for is an auto loan.”
Customer: “You mean money to buy a car?”
Loan Officer: “I mean money you lend yourself.”
Tic-tac-Owe
Game show veteran Wink Martindale is back, hosting “Debt” on the Lifetime cable network beginning next week. Contestants arrive with between $6,000 and $10,000 in debt—from credit cards, student loans and car loans—and try to head into the black by answering pop-culture questions. Instead of taking home TV’s or bedroom sets, players get a chance to win up to twice what they owe. “The reason contestants are in debt in the first place is that people have already gone out and bought these prizes,” says Martindale. What about the folks who pay their bills on time? “Buy the time-share you’ve always wanted and then come see us,” suggests senior producer Andrew Golder. “Or just enjoy the drama of watching others trying to escape the pit you were smart enough to avoid.”
Early Withdrawal
A man stopped by his bank to cash a check. Just as he got into the lobby, another man with a large bag came running past him, apparently heading for the exit. Then the bank security guard came dashing by, followed by several bank employees. The security guard tackled the man with the bag, handcuffed him and hauled him back into the bank.
The man who had gone in to cash his check was shaking like a leaf. “I’ve actually seen my first robbery,” he said to himself. As he approached the teller’s window he couldn’t resist finding out more about what he had just witnessed. “Was that really a robbery?” he queried.
“Oh, no, sir,” the teller replied calmly. “That was only our substantial penalty for early withdrawal.”
Prospective Father-In-Law
Prospective father-in-law to daughter’s suitor: “How much money do you have in the bank?”
Young man: “I don’t know. I haven’t shaken it lately.”
An employee asked for a raise, telling his boss that several companies were after him. When asked which ones, he told his employer, “There’s the electric company, the phone company and the gas company.”
It costs more to buy the average new car in the U. S. today than it cost Christopher Columbus to equip and undertake his maiden voyage to the New World.
Credit
Credit is what keeps you from knowing how far past broke you are.
Personal debt in the U. S. increased at the rate of $1000 per second and consumer installment debt has mushroomed to a point where it takes approximately $1 out of every $4 that consumers earn after taxes to keep up the payments—not including the home mortgage.
For over 250,000 Americans, the burden of debt is so great that he/she declares bankruptcy. There are even more serious consequences of this financial tension created by debt: 56% of all divorces are a result of financial tension in the home.
“The wise man saves for the future but the foolish man spends whatever he gets.” Proverbs 21:20.
Since statistics show that the average American consumer has installment payments equal to 17 to 18 percent of his take-home pay, obviously large numbers of persons are overspending. An increase in bankruptcies of over 50% more each year than the previous year, would indicate that such overspending is leading many into financial disasters. And the Bible calls such spenders fools! I don’t know many people who deliberately choose to be foolish.
When it comes to money, the way to be wise is to be a saver. Here are four simple rules given by the late financier, J. P. Morgan, for saving money.
1. Start early. Today is the day to start your savings program.
2. Save a definite amount. 3. Save regularly and systematically.
3. Employ your savings productively.
