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The Founding Fathers' money tips © Steve Allen/Jupiterimages/iStock

Extra7/3/2009 12:01 AM ET

Money tips from the Founding Fathers

For this Independence Day, here are words of financial wisdom -- to and from some of the Americans portrayed on US currency.

[Related content: savings, budgeting, loans, economy, spending]
By Kiplinger's Personal Finance Magazine

Benjamin Franklin famously coined the phrase "A penny saved is a penny earned." But, as it turns out, a few other founders of the United States of America had something to say on the subject of finance, too.

In the spirit of the Fourth of July, we present their timeless advice, which might just help you forge your own financial independence.

John Adams © iStock

John Adams

John Adams, on the importance of a financial education:

"All the perplexities, confusion and distress in America arise not from the defects of the Constitution, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit and circulation."

-- From a letter to Thomas Jefferson in 1787

Thomas Jefferson © iStock

Thomas Jefferson

Thomas Jefferson, on living within your means:

"But I know nothing more important to inculcate into the minds of young people than the wisdom, the honor, and the blessed comfort of living within their income, to calculate in good time how much less pain will cost them the plainest stile of living which keeps them out of debt, than after a few years of splendor above their income, to have their property taken away for debt when they have a family growing up to maintain and provide for."

Benjamin Frankling © iStock

Benjamin Frankling

-- From a letter to Martha Jefferson Randolph in 1808

Benjamin Franklin, on the magic of compounding:

"Remember that Money is of a prolific generating Nature. Money can beget Money and its Offspring can beget more, and so on. Five Shillings turn'd, is Six: Turn'd again, 'tis Seven and Three Pence; and so on 'til it becomes an Hundred Pound. The more there is of it, the more it produces every Turning, so that the Profits rise quicker and quicker."

Alexander Hamilton © iStock

Alexander Hamilton

-- From "Advice to a Young Tradesman, Written by an Old One," 1748

Alexander Hamilton, on what constitutes a sound economy:

"Industry is increased; commodities are multiplied; agriculture and manufacturers flourish; and herein consists the true wealth and prosperity of a state."

-- Report on Manufactures, 1790

George Washington © iStock

George Washington

George Washington, on getting rich quick:

"Few men have virtue to withstand the highest bidder."

-- From a letter, Aug. 17, 1779

This article was reported by Tina E. Korbe for Kiplinger's Personal Finance Magazine.

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Friday, July 03, 2009 10:24:09 AM
Keep it simple?  Wow, who'd have thought.
Friday, July 03, 2009 3:27:10 PM
Ironically, Hamilton and Jefferson had major financial problems.  Hamilton was so broke when he died that his friends had to take up a subscription to support his family.

I would take Franklin's advice.  Out of all of the founding fathers, he was the only one who worked with his hands, yet he used his own money to fund endowments for the cities of Philadelphia and Boston that continued to provide funds for the education of young tradesmen over a hundred years after he was dead and gone.

Truly an example of putting your money where your mouth is.

Friday, July 03, 2009 8:23:18 PM
MSN failed to include one thing that all the founding fathers agreed upon: privately owned banking systems. Our beloved Federal Reserve system is privately owned. Their records of how their system runs and what they do with their money does not by law have to be released to the public. Ron Paul, the 2008 republican who ran for president last year, has introduced a bill into congress a few months ago that will audit the fed if it is passed. It has gained a lot of support over these past few months too.
Friday, July 03, 2009 8:30:46 PM
Wow, I thought this might even be an interesting article, instead it feeds us tax paying regular Joe's exactly what the rich want us to believe. Educate us? Bullcocky.
Friday, July 03, 2009 8:31:38 PM
no mention about the gold standard.  interesting.  can't imaging the founding fathers would have thought it wise to abandon it.
Friday, July 03, 2009 8:38:10 PM

It you include medicare in our responibilites to our citizenry. I think it comes $500,000 / family in indebitiness.  I see the only solution to this is one of two or a combo of them:

(1) raise taxes

(2) decrease service

(3) decrease the cost or payouts.

If we don't watch out our federal debt will be more than our GDP someday.  We need to stand unitied as a country as this problem can of Federal Debt can kill our country or cause war I feel.  We have enough lawyers in washington we need people that serve their country and not themselves to get rich. Book deals, talking arangements it is a joke. We need leaders of government that serve the people.  Do you see how the rest of the world is in poverty while we eat our hotdogs and driver our SUVs and complain that we need more more more.  Enough.  We need to produce for the world and enough of this taking and bullying the world.  Love is the Answer.  We need politicans that are not career polticans enough of the old.  We need change! And good honest politicans not money hunger lawyers!

 

Friday, July 03, 2009 8:39:25 PM

I now have a quote I like:

"Few men have the virtue to withstand the highest bidder."

Well said GW.

 

 

Friday, July 03, 2009 8:42:13 PM

Here is another one from the Bible: Proverbs 38:3 I like. paraphrased

The rich oppression of the poor is like a devastating rain that gives no food.

 

Like the paper **** we sold the rest the world I would say. I hope we are selling more paper ****.  We need change!

 

Friday, July 03, 2009 9:07:30 PM
About the gold standard, maybe that's because the US didn't have it back during the time of the founding fathers.  Know your history.
rcpljp
#10
Friday, July 03, 2009 9:07:47 PM
What do we need the Fed for? Isn't the Fed a private bank owned by international bankers who have no allegiance to any country? The international banker's motto is, "Give me control of a nation's money and I care not who makes it's laws". Every new dollar that comes into existence is borrowed into existence. That means it must be paid back back with interest. Our Government pays interest to the Fed! Why can't our Gov't print up it's own money and spend it into existence with no debt or interest attached? Didn't the Fed come into existence through dubious means, bribery, secrecy, deceit? Haven't we suffered ever since? Didn't the income tax thing come into existence by the same action that created the Fed? Couldn't our Gov't abolish the Fed and the income tax and print their own money and spend it into existence. We could pay our taxes in the form of inflation and nobody could cheat on their taxes anymore. We already pay a hefty tax in the form of inflation, that's enough if we would do all this right. Is all this too simple for highly educated people to understand? Don't these simple questions deserve consideration? Am I too simple minded?
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