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Symptoms of financial problems

by Crown Financial Ministries

Without question, family financial problems seem to increase dramatically during economic slumps. Are the financial
problems caused by economic slumps? Generally not.

With rare exception, family financial problems have begun long before the economic slumps, perhaps as early as childhood.

Ignoring God''s Word

Usually families with financial problems only recognize the symptoms of the problems (such as unpaid bills) or the
consequences of the symptoms (such as repossession of property). They seldom identify the real underlying cause of the
problem.

Most of the symptoms of financial problems that families face in today's society—business failures, foreclosures,
bankruptcies, out-of-control debt, two-job families, and divorce—can be traced to a central problem of ignoring God's
financial principles as recorded in His Word.

It is likely that the problem was learned from parents who also had the same problems. “Now it shall be, if you will diligently
obey the Lord your God, being careful to do all His commandments which I command you today, the Lord your God will set
you high above all the nations of the earth” (Deuteronomy 28:1).

God's financial principles and instructions are not complicated or hard to understand. They were designed to free His people
from financial burdens and not to bind them with an unattainable set of dos and don'ts.

Unfortunately, though, since the mid-1950s God's principles have increasingly been ignored by families who have adopted a
get-rich-quick mentality by using easily obtainable credit to purchase “what I want, when I want it.”

The children of these 1950s and 1960s parents learned to buy on credit from their parents' example.

Now, a generation later, we are reaping the burden of sown seeds of moderate debt in the form of overwhelming excessive
debt.

It was Benjamin Disraeli (1804-1881), Earl of Beaconsfield, who said in an address before the British House of Commons on
May 1, 1865, “What we do and allow in moderation, our children will allow and do in excess.” What better words can describe
the primary cause of the downward financial spiral of families in our society?

Without a doubt, the lack of financial discipline in parents is reflected and amplified in the lives of their children and their
children's families.

Symptoms of financial problems

If parents do not operate on a budget, seldom will the children.

If parents use credit readily and make buying decisions based on the ability to make monthly payments, rather than on the
initial price of items purchased, so will the children.

Once married and on their own, young couples attempt to duplicate in a few years what perhaps has taken their parents
decades to accumulate. In order to accomplish that goal, they use credit, as they were taught.

Before long they have numerous assets, but the assets are all tied up in liabilities.

This debt burden causes many of these young couples to experience the following symptoms.

They no longer can pay the monthly bills. Once the credit cards have reached their maximum limits and other sources of
readily available credit begin to tighten, financial pressure begins to build. Finally, in desperation, a bill consolidation loan is
obtained. Usually within less than a year the credit card debts return, making the end result worse than the beginning.

More income is needed. More credit cannot be the answer, so logic says that more money is needed. Consequently, the
wife usually has to go to work. When young children are involved, the result may be breakeven or less.

Buy to pacify the pressure. At this stage many Christian families try to pacify the financial pressures by buying something
new or going on a “get away from it all” vacation. However, these usually have to be financed with credit, so again the end is
worse than the beginning.

Divorce and/or bankruptcy. When financial pressure reaches the boiling point, with no apparent way out, either the
couple takes it out on one another—resulting in divorce—or they file for protection under the bankruptcy laws in order to
start over again. However, if God's principles were not learned during the process, the same financial problems will be
present in the second or third marriage or after the discharge of bankruptcy.

Preventive measures
Although symptoms of financial problems can be devastating, it is much easier for families to practice prevention rather than
recuperation.

As such, there are four basic preventive measures that families can exercise to counterbalance unbiblical financial practices
and to prevent the symptoms of financial problems.

Abstain from borrowing. “The wicked borrows and does not pay back, but the righteous is gracious and gives” (Psalm
1 of 1 37:21). Scripture clearly indicates that borrowing is not God's best for His people and should never be used as a routine part
7/9/2008 8:36 PM