Young
married couples lulled by false sense of security
By
Kirk Noonan (March 30, 2003)
Though
they had accumulated nearly $30,000 in consumer
debt, Stan and Virginia O’Neill* didn’t
worry about their financial future. In their late
20s, both had good-paying jobs and easily made
the minimum payment on each bill they owed. But
when Virginia stopped working to care for their
first child, the O’Neills’ debt began
accumulating. Soon after, Stan lost his job.
“We
were like many other young people using the credit
that was offered to us,” says Stan, 41,
recalling his spiral into debt 12 years ago. “Credit
used to be extended only to people who could afford
it, but during our generation companies started
giving it to anyone who had a heartbeat, and we
took it without considering the consequences.”
As
Stan searched for employment, he started studying
biblical principles for handling finances. God
provided several consulting jobs, which enabled
him to support his family while he looked for
permanent work. In a two-year period, on one income,
the O’Neills eliminated all their consumer
debt.
Today,
the O’Neills stick to a set budget, invest
their money, spend wisely and have savings for
emergencies. Doing so, says Stan, has enabled
his family to experience financial freedom. “Our
goal now is to teach our kids financial biblical
principles so they don’t make the same mistakes
we made,” he says.
Dick
Hall, vice president of the unified stewardship
program of Assemblies
of God Financial Services Group, says trusting
in two hefty incomes can create a false sense
of security. Many couples have learned the hard
way that layoffs, health problems, children and
mismanaged pensions can mean that anticipated
income has evaporated. Many experts recommend
that families have three to six months’
worth of savings in case of emergencies such as
injury or unemployment.
A recent
Gallup poll showed that two-thirds of Americans
ages 18-24 own at least one credit card and the
age group is the most prized consumer demographic,
especially because they spend the most on consumer
goods such as clothes, compact discs and cell
phones. In addition, many young people also have
car payments and a hefty mortgage that can drain
finances each month.
Luke
and Amy Montoya*, both 24, learned some difficult
money lessons the hard way. When they married
four years ago they both had stable jobs and enjoyed
spending money at restaurants and malls. But they
fell into debt after Luke contracted bronchitis
and asthma. For the uninsured couple, medical
and prescription costs added up quickly. Today
the Montoyas are $10,000 in debt.
“I
don’t want to live this way,” says
Luke, who works odd jobs to make ends meet. “Emergencies
come up fast. If I could do it all over again,
I would have money saved up before I got married.”
Hall
advises young couples to look to the Bible for
guidance in forming a budget. “Sometimes
young people need to stop in their tracks and
rethink priorities,” Hall says. “We
all need to take control of what God has given
us. That’s what stewardship is.”
The
O’Neills have learned that lesson. Today,
Stan teaches a finance class at his church and
implores young couples to determine their needs,
as opposed to their wants. “Though it’s
not always fun and it can be a challenge to get
one’s financial situation organized, it
definitely pays off in the long run,” he
says.
* Names
have been changed.
