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U.S. Presidents Who Had Money Problems

We often think of people who have served as President of the United States of America as great people – and they are! That doesn’t mean, however, these individuals are not human and capable of failure.

In fact, when it comes to handling finances and fiduciary responsibility, there have been several Presidents whose business acumen has lacked and resulted in various difficulties. So, with this in mind, let’s take a look at some former Presidents who encountered financial problems at some point in their life.

Thomas Jefferson: 1801-1809

• Thomas Jefferson, one of our country’s Founding Fathers and third U.S. President, was a true Renaissance Man known for his many talents in writing, economics, religion, philosophy, horticulture and mathematics.
• And despite all these talents, as well as being a wealthy landowner, Jefferson actually died $107,000 in debt.
• By today’s standards that would equate to approximately $3.4 million.
• As a farmer, some of Jefferson’s debt was due to the ups and downs associated with the profession.
• Some of Jefferson’s other financial problems came from his father-in-law and also a friend for whom he cosigned on loans.
• He was also known to lend out money in which the payments made against those loans were unreliable.
• This was all done in addition to his own expensive spending habits.
• Now, in the time of Thomas Jefferson, the option to file bankruptcy did not exist except during a brief window from 1800 to 1803, which he did utilize. 
• Following a fire which destroyed a significant portion of the Library of Congress, Jefferson sold part of his book collection in 1815 to the U.S. Government which he used to help reduce his debt.
• Nonetheless, at the time of his passing on July 4, 1826, Thomas Jefferson was in serious debt with no real means to cure it.

James Monroe: 1817-1825

• When our country’s fifth President left office after his second term in 1825, he found himself heavily in debt due a career in public office which not only paid poorly, but also required personal expenses for entertaining, campaigning, traveling, and general protocol.
• In response to this, for several years after leaving public office Monroe continually pressured the U.S. government to compensate him thousands of dollars for past services rendered.
• Eventually, Monroe did receive a portion of the requested funds resulting in his ability to leave a sizable inheritance to his family upon his death on July 4, 1831.

William Henry Harrison: 1841

• America’s ninth President died after only 31 days in office due to complications suffered from pneumonia.
• And at the time of his death, President William Henry Harrison was close to insolvency.
• This is an interesting story given the fact Harrison was born into a prominent Virginian land-owning and farm family.
• Due to his family’s wealth, Harrison decided to pursue a career in medicine.
• Upon the death of his father, however, he didn’t have enough money to continue his studies.
• As such, Harrison used his family connections to start a military career.
• Upon completion of his Army duties, he served in various political capacities such as Secretary of the Northwest Territory, Governor of the Indiana Territory, and U.S. Senator before being appointed U.S. Ambassador to Columbia.
• During his tenure as Ambassador, he returned to the United States after a year abroad to find out bad weather destroyed his crops, his sons ran up bills, and creditors were coming to collect.
• Of course, having a family of ten children did not help his financial ills and only contributed to his difficulties.
• And although Harrison attempted to reconcile his debts all efforts proved to be fruitless.

Abraham Lincoln: 1861-1865

• Even Honest Abe – The Great Emancipator – was not immune from financial difficulties.
• Although America’s 16^th President is regarded as one of our nation’s best leaders, he was not a savvy businessman resulting in financial debt which took him years to pay off.
• At one point, he worked for a store owner who told him the business would be expanding and Lincoln would be made manager.
• Unfortunately, Abe didn’t see the financial problems the business was having resulting in its closure and his looking for work.
• One year later, in 1832, Lincoln partnered with a friend to buy a store in Illinois.
• Since he had no money, Abe Lincoln took out loans to finance the venture and when the business was not successful debt mounted.
• Things then went from bad to worse when Abe’s business partner passed away leaving him with the entire debt.
• Eventually, Abraham Lincoln was able to pay the debt in full and eight years later was elected to Congress.
• And the rest, as they say, is history!

Ulysses Grant: 1869-1877

• A few years after Abe Lincoln’s presidency, Civil War hero Ulysses S. Grant became our nation’s 18^th president.
• It was actually Grant’s lack of business sense at a young age that drove his father to send him to West Point.
• Even then no one could have predicted his dramatic rise within the Army as well as historical significance to his country, as he proceeded to graduate near the bottom of his class.
• Grant’s financial problems, however, didn’t begin until after he left the Office of the President in 1877 at which time he and his wife, Julia, went on a world tour.
• During this time, Grant neglected his expenses.
• Upon his return, Ulysses’ son, Buck, talked him into partnering with a business associate.
• Unfortunately, this business associate embezzled funds from the company, was caught, and sent to jail.
• This left Grant completely broke!
• Desperate for money, Ulysses S. Grant decided to write his memoirs and with the help of his friend and publisher, Mark Twain, became a best-selling writer.
• Shortly thereafter, Grant died but his family inherited $450,000 from his book royalties.
• That would be the equivalent of about $14.5 million today!

William McKinley: 1897-1901

• Like Thomas Jefferson, America’s 25^th president, William McKinley, encountered financial problems by cosigning on debt for a friend.
• Upon cosigning for a loan, McKinley believed the amount to be $17,000, which would be the equivalent of $613,000 in today’s world.
• Once this said friend filed bankruptcy, major financial problems for McKinley resulted.
• For starters, not only was McKinely the Governor of Ohio at this time occurred, but the loan for which he co-signed was not in the amount of $17,000, but rather $130,000, or $3.5 million by today’s standards.
• To make matters worse, he had no other choice but to declare bankruptcy.
• Due to the embarrassment this caused, McKinley planned to resign as Governor, sell off his property, and return to the law profession as he saw it as a more feasible way to pay off the debt.
• Instead, wealthy supporters rallied around McKinley to raise enough money to pay off his debt.
• Ohio voters didn’t seem to care either, as he was re-elected to the governorship for a second term prior to becoming President of the United States.

Harry Truman: 1945-1953

• “Give ‘Em Hell Harry” was our nation’s 33^rd President and one of the poorest to ever reach the White House.
• Truman’s financial difficulties began early in his life when he borrowed against his inheritance to invest in a zinc company.
• Simply stated the company failed and Truman’s inheritance was gone!
• In 1919, he partnered on a clothing store which only lasted a few years.
• Although Truman’s business partner declared bankruptcy, Harry, like Abraham Lincoln before him, decided to honor his financial obligations and paid off the debt over several years including during his time as President.
• In fact, it was during Truman’s term that the Presidential salary was doubled to help assist him with his debt.
• Similarly, in 1958 when Truman was again experiencing financial difficulties the Presidential pension was created.
• To his credit though, during his post-Presidential life Harry famously turned down several high-paying corporate jobs believing that cashing in on his name was below the Office of the President.
• He did, however, sign the rights to his memoir in the mid-1950’s for an estimated $600,000, which would be worth about $7 million today, that was paid out over several years.
• At the time of his death in 1972, Truman had the distinction of being one of the poorest U.S. Presidents with an estimated net worth considerably below $1 million.

As can be seen, financial problems and distress can happen to just about anyone – even the President of the United States. So, the next time you’re feeling a financial pinch or even something a bit more serious, remember there’s always a way to turn your misfortune around, and it starts with you!

Also know, Safe 1 is always here to assist you with all aspects of your financial journey! Whether it be in-person or over-the-phone, we’re here to assist you with all your financial needs. And don’t forget to visit safe1.org/resource-center for critical information and topics designed to assist you.

Resource: https://www.cash1loans.com/blog-news/bankrupt-celebrities-us-presidents