 The Human Condition
Examining how the human condition affects our financial life.
Recently, the local grocery chain Ukrop’s and gas station convenience store brand Uppy’s came out with an interesting promotion: they would reward customers for every $50 spent at Ukrop’s with a 10 cent discount on gas. That meant if you spent $100 at Ukrop’s, you could get a 20 cent per gallon discount next time you went to an Uppy’s for gas.
Not bad.
Naturally I was a little interested. I focused all my grocery trips to Ukrop’s until I had reached my first $50 mark. I then waited until my gas tank dwindled just below the red empty line before racing to the nearest Uppy’s BP to watch the price of gas drop before my very eyes. It was pretty exhilarating, I won’t lie. The price on the advertising board showed unleaded at $3.55. At my tank, though, it said $3.45. To add to that, I was using my Chase VISA BP rewards card – I got 5% back on purchases of BP gas anyway!
I happily grabbed my receipt and slid into the driver’s seat. On the way home is when it hit me.
I drive a Dodge Intrepid. The average fill-up for me consists of 13 or 14 gallons at most. For $50, I was only saving $1.30 or $1.40 at most. Hmmm… I had to think if it was worth it. Ukrop’s was more expensive than Kroger and Food Lion – the competing grocery chains. Would I save more than $1.30 or $1.40 by shopping at Kroger or Food Lion? It was likely.
What Ukrop’s and Uppy’s did was not a bad deal. They both benefited and, if the customer would have shopped at Ukrop’s anyway, the customer did, too. I was price sensitive and not concerned with the other services Ukrop’s offered that made it valuable to other customers.
Many times, deals like this will come our way. It’s important that we separate the excited feeling of getting a great deal from what is actually going on. Sure, it may feel good to get 25% off any iTunes gift card, but was the newest version of the iPod you had to buy to get it worth it? Probably not.
This month, focus on the real savings of something titled “Sale!.” Ensure you are getting the deal that’s not only right for you, but also feeds a need versus a want for your daily living.
 A Spiritual Perspective
Looking at the world through the focused eyes of faith.
“Simon Peter answered, ‘You are the Christ, the Son of the living God.’ Jesus replied, ‘Blessed are you, Simon…on this rock I will build my church, and the gates of Hades will not overcome it.’” Matthew 16: 16 - 18.
Recently two of the largest mortgage holders in the United States – Fannie Mae and Freddie Mac required the United States government to perform an extraordinary takeover of the two companies. How did this happen?
Long story short, banks loan out money for homes and then sell those mortgages to Fannie or Freddie. Fannie or Freddie then resell those same mortgages as bonds to other companies and investors. The problem came when so many people defaulted – and continued to default – on home loans that Fannie and Freddie couldn’t continue to buy up the new mortgages from banks. You see, Fannie and Freddie are the heart of the US mortgage market. They are the foundation.
Our foundation as Christians is Jesus as God. Jesus is a foundation that will never fail. In the passage above, Jesus had asked his disciples who he was. Peter boldly stated that Jesus was the long-awaited Messiah. Jesus’ response displayed just how right Peter was – Jesus tells us that on the truth that he is God and has served as our substitute is what he bases the Holy Christian Church. He says that the church will never fail.
As consumers in this country, it’s almost unavoidable that we would indirectly come into contact with Freddie and Fannie if we ever buy a house. It’s inevitable. And when Freddie and Fannie don’t do well – we may feel the negative impact. When companies go bankrupt and their stock is worth nothing, we can feel hopeless. When economies struggle and our net worth goes down, we may become depressed. Basing our financial decisions, however, on the foundation that is Jesus is where we find mercy. God has taught us to trust him and allow him to guide our earthly decisions as we fulfill the specific callings in our lives.
Even though earthly institutions may fail, Jesus’ guidance and love never will.
 Focus Facts
Crunching the numbers as you keep your focus on your finances.
A random national telephone survey conducted by KRC Research asked Americans with children under the age of 18 to consider the likelihood that their children would go to college and the financial preparedness to cover college costs. The results are startling.
- 94% of parents say it is definite or likely that their children will go to college
- 77% of parents expect to be fully or mostly responsible for financing their children’s education
It appears that the majority of parents have the desire for their children to attend college and are willing to pay for it.
The survey also asked how those same families are doing with their savings plan to help pay for college expenses. Results are listed below:
Heart in Focus strongly encourages families to set both short and long term goals for their daily living. Saving for college education is one of the most common long-term goals identified by families in the courses that we teach. Want to learn more on how begin a savings plan? Attend one of the upcoming Heart in Focus courses.
Source: Life Foundation Survey, www.lifehappens.org
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