• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

18 Personal Finance Facts You Didn’t Know About US Presidents

By Len Penzo

It may seem hard to believe at times, but the 45 Americans who have had the good fortune to be called “Mr. President” are really no different than the rest of us.

Oh sure, sitting US presidents may be considered the most powerful men in the free world, but they still put their pants on one leg at a time. Yes, some were financially successful during their lives — but there were others who encountered serious financial troubles.

To prove it, here are a few facts regarding the personal finances of several American presidents:

  1. Long before he became the 33rd president of the United States, Herbert Hoover was a mining engineer. It turned out to be a wise career choice. Not long after graduating from Stanford, Hoover went to work in Australia’s goldfields. His starting inflation-adjusted annual salary: $133,000.
  2. Hoover eventually moved up the ranks to become a mining industry executive. He was also a shrewd investor — so much so that Hoover eventually amassed an inflation-adjusted net worth of $71 million.
  3. Speaking of smart investors, in 1989 George W. Bush paid $600,000 to become a co-owner of Major League Baseball’s Texas Rangers. Shortly before being elected America’s 43rd president, Bush sold his stake in the team for approximately $15 million.
  4. Since 2001, sitting presidents have received an annual base salary of $400,000. They also get a $50,000 annual expense account, and a $100,000 nontaxable travel account.
  5. The President also gets $19,000 annually for entertainment. That’s enough cash to pay for 38 rounds of golf at Pebble Beach. Don’t scoff. The cart is included.
  6. Who says US Presidents are overpaid? If Donald Trump received the same annual rate of pay as George Washington did back in 1789 — 2% of the US budget — our 45th US president would be collecting a cool $82 billion this year, give or take several billion. But who’s counting?
  7. Of course, Washington didn’t really need his presidential salary. Before becoming president, he was one the richest men in North America.
  8. Much of Washington’s early wealth was gained after marrying his wife, Martha. She had become a very wealthy widow after her first husband, Daniel Parke Custis, passed away. For what it’s worth, Custis was an extremely successful planter who also happened to be 20 years older than Martha.
  9. It’s a good thing Washington had a lot of money. He loved spending it and lived an aristocratic lifestyle.
  10. Unfortunately, shortly after marrying Martha, Washington’s tobacco export profits began drying up. As a result, he racked up large debts to a London merchant named Robert Cary, who was responsible for selling Washington’s tobacco overseas.
  11. Within a few years, Washington eventually clawed his way out of debt by cutting back on his expenses, diversifying his income stream, and paying more attention to his finances. Washington successfully expanded his tobacco farming business to include other crops. He also diversified his operations into other areas including fishing, horse breeding and even whiskey production.
  12. The Father of Our Country wasn’t the only president with occasional money problems. Thomas Jefferson was in debt for much of his life. Upon his death in 1826, Jefferson owed $100,000 to his creditors. That’s equivalent to almost $2 million in today’s inflation-adjusted dollars.
  13. In 1893, William McKinley declared bankruptcy in Ohio while serving as governor of the state. That didn’t stop McKinley from becoming the nation’s 25th president just three years later.
  14. As a young man, Abraham Lincoln decided to foray into the grocery business with a partner named William F. Berry. After Berry died, Lincoln was stuck with so many unpaid bills that the future president called it “The National Debt.”
  15. Speaking of bad business deals, after serving as America’s 18th president, Ulysses S. Grant invested his money with a brokerage firm run by Ferdinand Ward. Unfortunately for Grant, Ward was a swindler who ran the company as a Ponzi scheme, a la Bernie Madoff. When Ward’s scheme finally unraveled in 1884, Grant was left nearly penniless.
  16. After losing his money, Grant sold all of his Civil War mementos in an attempt to make good on an outstanding personal loan for $150,000 that he had received from railroad mogul William H. Vanderbilt. Although Grant was unable to raise enough funds to completely repay the loan, Vanderbilt declared the loan paid in full.
  17. The 33rd president of the United States, Harry S Truman, lost $30,000 after his clothing store failed in 1922. That’s equivalent to $400,000 in today’s dollars. Even so, he never declared bankruptcy. It took Truman a dozen years before he was finally able to get his finances back in black.
  18. By the way, Harry’s middle initial doesn’t stand for anything. I know, I know. That’s not a financial fact. But it would have been if his parents had named him Harry $ Truman.

Photo Credit: Sh4rp_i

February 12, 2018

Comments

  1. 1

    Joe @ Retire By 40 says

    That’s a lot of fun. History isn’t my strong point and I didn’t know GW was so well off. It’s great that he was able to diversify his income and enjoy living it up.

  2. 2

    Glen @ Monster Piggy Bank says

    I know this is off topic a little bit, but that pebble beach golf course looks amazing!

  3. 3

    Jose says

    Interesting read. I think I knew a few of those facts you posted but found most of them to be be pretty interesting. Thanks!

  4. 4

    Jared says

    Teddy Roosevelt lost $60,000 (1880’s dollars) in cattle ranching during the winter of 1885-1886. His wife, Edith, would give him an allowance, because he was a fool with money.

    He’s my life coach otherwise! Love him, he was a most fascinating individual.

  5. 5

    Grayson @ Debt Roundup says

    This is an awesome article. It is fun to read about how our presidents also had issues with money. Some were very good with it and others poor.

  6. 6

    krantcents says

    These are great fun facts. I especially like the no middle name on Truman. Presidents do not need to be financially smart, but they do need to pick financially smart cabinet people. A good leader does that!

  7. 7

    Jason says

    You forgot “hemp farmer” on the list of Washington’s other modes of income. Although, he did know the difference between the male and female plants meaning that tobacco wasn’t the only thing he smoked.

  8. 8

    Jon Haver says

    Great Read!! Don’t learn this in history class thats for sure!! Im curiouse how much they had to spend back then to run for president. Today if they all put that together you’d prob put a dent in the debt!

  9. 9

    Tony@WeOnlyDoThisOnce says

    I had no idea that Presidents get entertainment money! That is quite a bit of cash for sure. Thanks for this insightful list!

  10. 10

    Christopher Harrington says

    Wow, I can’t believe Hoover was working in Australian gold fields. This post is super entertaining. It does make them seem like they’re not much different than regular folks when it comes to personal finance. Thanks Len.

  11. 11

    Carrie Smith says

    Haha — Harry $ Truman! I had no idea about some of these presidential facts. Pretty cool stuff!

  12. 12

    Pam says

    I am not a big history buff either, but those tidbits you dug up about the presidents are very interesting. You are right, they really were just ordinary guys, but they happened to dream big enough to become who they wanted to be. Interesting thought.

  13. 13

    Friday Friday says

    Number 6 is quite interesting. Thankfully the 2% figure has changed over the years. That’s a good list thanks for sharing.

  14. 14

    Wise Money Tips says

    Interesting facts. Yes, it’s important to remember that anyone can experience the typical financial issues that preoccupy everyday people. You could be the President, a famous athlete, actor, successful entrepreneur, etc. However, the decimal point may likely be a few more places to the right for such individuals.

  15. 15

    RD Blakeslee says

    To me, Harry Truman is a legend.

    Faithful in the best sense of that word to his wife Bess.

    Defender of progeny – took on the music critic of the Washpost when he panned daughter Margaret’s singing.

    A student of history.

    Enabler of George Marshal’s plan for the reconstruction of Europe.

    Made the hard choices, Hiroshima and Nagasaki among them, in a straightforward, no looking back fashion.

    Socio-political fallout? Harry didn’t care and neither do I.

    Motto on his desk: “The buck stops here.”

  16. 16

    JoeHx says

    I like how George Washington got out of debt pretty much the same way someone would today – by cutting back on expenses, diversifying income streams, and paying more attention to finances.

    • 17

      Len Penzo says

      Me too, Joe!

  17. 18

    Good Nelly says

    Interesting article. It shows that every one of us can face debt problems in some point of our life. However, at the same time, we can work towards becoming debt free and be successful.

The Question of the Week:

Are cryptocurrencies a legitimate wealth preservation asset?

View Results

Loading ... Loading ...

Recent Posts

  • When It Doesn’t Pay to Buy Big-Ticket Items on Sale
  • Black Coffee: Digital Castles in the Air
  • How to Improve Your Sports Betting Success
  • Toyota Has Started Accepting Bitcoin for Payment
  • 100 Words On: Why You Need Emergency Savings AND a Rainy Day Fund
  • Why You Should Consider a 203k Mortgage When Buying a Fixer-Upper
  • 6 Ways to Avoid Becoming a Pickpocket Victim
  • What Beginners Should Think of Before Starting Forex Trading
  • The Embarrassing Anatomy of a Phishing Scam
  • Black Coffee: Too Little Too Late

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 40,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!

Popular Now:

  1. 1. The 6 Most Valuable Grocery Store Products
  2. 2. Series I Savings Bonds Are Now Paying 9.62%; Here Are Their Pros & Cons
  3. 3. 25 Examples of Shrinkflation That No Longer Fool Consumers
  4. 4. 7 Big Reasons Why a Roth IRA Isn’t the Best Way to Save for Retirement
  5. 5. 3 Ways That Great Sleep Helps You Get Richer
  6. 6. What’s the Fastest Way to Pay Down Your Mortgage Early?
  7. 7. How to Save Money on Dental Care So You Won’t Go Broke at the Dentist
  8. 8. Historical Gold & Silver Benchmarks for Wages and Commodity Prices
  9. 9. Tip Inflation: We’ve Got Nobody to Blame But Ourselves
  10. 10. 4 Good Reasons Why Some Quarters Are Painted Red

All-Time Most Popular:

  1. 1. 19 Things Your Suburban Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending You the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Copyright © 2022 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2022