Economy

Thought I posted this... found it still in my drafts today 11/4/08

NOTICE: This post is an editorial. This entry has been in the works for a bit which might in part explain its length. I don't have to convince myself not many people will read and that's okay. I leave you with this as we unhook the computer and move:

I've had some thoughts on the economy lately which isn't normally an area that provokes me to deeper thought. For instance, Billy pays our bills as dealing with money on a day to day basis stresses me out and I express my appreciation for how he handles that area of our lives as often as I can. Normally I tend to be one of those people that if I can't change it, I don't stress about it. Everyone has their opinions on what the problems are with the nation's economy and how to fix them so I'll throw mine there in the heap. The opinion I'm about to share made quite a bit of sense to me as someone who struggles with perfectionism.

The economy is like it is because we are all living a lie. Pretty strong stuff I know, but something about this idea kicked in with me on a deeper level. The view point being offered is as Americans we buy houses, go on vacations, accumulate toys, keep up with the latest fashions while putting these things on credit that we can't afford because we want to maintain an image. Whether it's a comfort shopping spree or an addiction that you turn to when down, maintaining an image is all about appearance. To me this process is another way of saying I want to be perfect or at least successful, wise, someone of worth. Also it says I'm not happy enough and feel strong enough about how God made me to just relax and be who I am.

In my humble opinion, we buy things we can't afford for many reasons, topping the list of justifications is we feel we are due these material items. We buy in to the marketing of "you deserve it", "you're worth it". We aren't victims of this marketing campaign, we choose to buy in to the theory. It's the same way Americans twisting the rights spoken about with respect and maturity in our historic government founding documents. We can sound more like rebellious teenagers somehow feeling constrained and victimized by rules and regulations needed to have a functional society. So we rail that everything costs so much but continue to buy it because we 'have to' have it.

If you've wisely saved and can in fact afford to pay for things without going in to debt this doesn't apply to you. What does it mean to afford it? Not stressing your budget, can still afford to save? That alone is where it's a subjective definition. Some may feel as though they are surviving and that's enough. For those who can't truly afford these things, they feel entitled to them anyway or maybe convince themselves they need them to feel worthwhile. So they over extend themselves with credit cards, the outrageous ARM's (adjustable rate mortgages) that is the bane of the sub prime mortgage fiasco and find themselves now leveraged to the hilt. The ARM issue I had the opportunity to see up close working in the mortgage industry for a few years. Loan officers wanted to make their goals and commissions so customers got approved on the teaser rate instead of the ceiling rate of their mortgages. That means 5-7 years down the road when your rate starts climbing, you are beyond your means. Tag that with the overall declining values of homes and you're stuck. Still peddling to make it appear as though we can handle what we have gotten ourselves in to. We bought something we couldn't afford so the people in that company could buy more stuff they can't truly afford. Living pay check to pay check, using credit cards to pay bills only to barely make enough money to pay the minimum on the credit cards. I realize this is one scenario and there are many out there, individual to each person as to why they are in financial dire straits.

When does it become a ding to some one's character to say, I'm not going to buy that right now, I can't afford it. When did shame get wrapped up there? OR how about I do like that, I'm going to save up for it. I liked the ladies retreat where the speaker asked us all to look to our neighbor and ask... what's so bad about being wrong? We can say in theory no one's perfect and we all have a need for Christ and we all nod and smile to that. It's all together different when the specifics are mentioned. Then my pride kicks in, the walls come up and my justifications begin.

I know these are strong opinions, which I'm usually hesitant to unleash for fear that something I might say would offend or hurt someone else's feelings. I'm not an expert but have had my own financial struggles about ten years ago where I learned the value of education in regard to money. I highly recommend Crown Financial Ministries. I have taken it twice, the second time being in our regular small group format, it was great. That course was a huge eye opener about the responsibility God gives us in regard to being good stewards of HIS money. Two of the most memorable lessons being my worth isn’t in possessions, and nothing really belongs to me anyway. Not growing up with a Christian financial perspective, it made an impact.

What I'm passionate about in this context is the sense of entitlement. I believe this attitude erodes our sense of appreciation. We question everything scanning for perfection which we will never know this side of heaven. Feeling owed sounds like it puffs up ones own sense of self. What am I giving back, if it's all about me? Basic necessities are food, water and shelter. There are responsible things to provide that come next such as health and life insurance. If we want more, let's make sure we are keeping it truthful. It's a want, it's not a need. God can give us the opportunity to be a steward over more. Just as the bible talks about each servant being held responsible for a different number of talents. I am not owed them and God can appoint some one to be a steward over them just as quickly. The parable talks about everyone being given at least a talent in the beginning, so I didn't do anything to earn that one. What I chose to do with it tells God how much more He can trust me with. Neither our worth or identity should bet wrapped up in acquiring them of having them.

Billy and I have had more than one conversation about the new house, affordability, responsibility, and being a good steward over it wanting in our hearts to use it for God's purposes.

What our nation's current situation has reinforced with me is to make sure I teach my children how to be financially responsible adults. I really enjoyed this article. I wanted to make note of the highlights here:

1. Set a good example.

2. Learn about money yourself.

3. Teach them one thing at a time.

4. Kids learn best by doing.

With these principles in mind, here are 11 lessons you can use to teach your kids about money:

1. Give them control of money.

2. Teach them the value of saving.

3. Teach them the value of giving.

4. Teach them how money can make money.

5. Teach them that cutting expenses can make goals come faster.

6. Teach them how to create a budget.

7. Teach them to pay bills.

8. Teach them about the dangers of debt.

9. Let them work for their money.

10. Teach them about materialism.

11. Teach them about impulse buying.