The president said something last week that reminded me of my mother. And her mother. And her mother.
President Joe Biden said , “Today, too many Americans, especially young people, are saddled with unsustainable debts in exchange for a college degree.”
He said he has come up with a new way to help millions of people, including those who have been paying on college loans and interest for 20 years or more.
It’s a problem alright.
I got through college with federal grants and loans, a work-study program — and some debt that I repaid. For our son’s undergraduate degree, we had in addition to federal grants some low-interest loans through the state that I repaid.
The root of the problem is the cost. Which has brought us to the curious phrase “unsustainable debt.” To my mother, and those who came before her, all debt is “unsustainable.” They did not believe in taking on debt. Today, we do.
The federal government, which had no problem dishing out $790 billion in Paycheck Protection Program (PPP) loans during the height of the COVID-19 pandemic and then forgiving $757 billion of it, is choking in debt.
The national debt is $34.58 trillion , and it has tripled in the past 20 years. Throwing money at every problem is what is unsustainable – regardless of how worthy the cause may be. As individuals, we’re as drunk as Uncle Sam. The Federal Reserve Bank of New York says :
Credit card balances in the U.S. total $1.13 trillion.
Mortgage balances total $12.25 trillion.
Auto loan balances total $1.61 trillion.
Total household debt is $17.5 trillion.
Approximately 20 years ago, my mother wrote down ideas on debt and spending. It’s a keepsake for us. I shared it with our readers when she wrote it, and it needs to be aired again, not as an economic treatise but as underappreciated commentary on the concept of “sustainable debt.”
Mama got frustrated with a neighbor who “wore me out borrowing money for her poor children’s needs.” So her help for the neighbor is heavy on coping with the expense of children. She called it “Hints For Living on Little”:
“My Mother’s advice was that before buying anything you should ask yourself three times whether you really need that item. If you can honestly answer ‘yes’ three times, you may purchase it — provided of course, you have the money at hand. You never, never, never buy on credit or borrow money! You must plan ahead and save up for these necessities, putting aside some money from each paycheck, gift, or earnings of whatever kind. The first expenditure is always the tithe (10 percent) for the Lord’s work.
“An easy way to allocate funds is to have several envelopes and any money received is divided according to your budget into these envelopes: ‘God,’ ‘rent,’ ‘food,’ ‘clothes’ (thank God for hand-me-downs, this is a small category), and ‘emergencies.’
“Buy only foods in season or on sale. Sometimes canning foods helps. Coupons sometimes help reduce costs. Cleaning materials are cheaper at Family Dollar or Dollar General than in a grocery store.
“Never get entangled in monthly payment plans for such things as cable television (which also has violent, sexually explicit and foul-languaged shows). Instead read, read, read good books to the children. This personal bonding is of great value as well as teaching virtue.
“Do projects with the children, helping them learn to use scraps, boxes, plant material, etc. to make gifts and useful items. This developing of creativity is vital to their growth intellectually. Pray with them as a family, read Bible stories to them and teach biblical truths and principles and otherwise help develop them spiritually.
“Songs help them develop a sense of happiness and security. Sing to, with and around them often.
“Take walks with the children and notice the marvels of God’s creation, teaching them to love and respect God’s world.
“Laugh often and have fun.”
Cut that out and share it with your children and their children. It just may be more valuable than a college degree.
David Lauderdale may be reached at LauderdaleColumn@gmail.com.
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