• cheerful little girl holding piggybank with parents on background

    Raising Financially Healthy Kids

    “I wish my parents had taught me more about how to manage money.”  I hear this over and over again from people participating in one of the many stewardship classes at Southeast.  Far too many adults these days have learned little, if anything, from their parents about money.

    It doesn’t have to be this way.  You and I can change this for the next generation.  Your kids can leave home someday prepared to manage money God’s way instead of learning it the hard way.  “Start children off on the way they should go, and even when they are old they will not turn from it.” (Proverbs 22:6, NIV).  When you make it a priority now, they’ll make it a priority when they are an adult.  Follow these five tips for raising financially healthy kids.

    1. Make sure they know it all belongs to God.

    We need to plant this idea early.  Talk about God being the owner of everything we have.  “To the Lord your God belong the heavens, even the highest heavens, the earth and everything in it.” (Deuteronomy 10:14, NIV).  This certainly includes our money.  When we grow up thinking it’s ours – or even that 90% is ours and only 10% belongs to the Lord – this belief drives our behavior.  The truth that God is the owner is the foundation for managing money.

    2. Keep it simple.

    I love the model of Give-Save-Spend.  I like the idea of using clear jars so they can see the money accruing over time.  There is not a right or wrong way to have them divide the money.  Have them give at least 10% to giving and divide the rest into saving and spending.  Some kids will have a giving heart and want to put it all in the giving jar so they can give it away.  If that’s your kid, then celebrate and encourage that.  You may want to think about offering some incentives for saving over time by matching or offering interest.

    3. Remember that more is caught than taught.

    You must lead by example when it comes to raising kids.  If your kids always see you paying with credit cards, then they are being taught that’s how you pay for things.  Also, they are watching how Mom and Dad communicate about money.  If money is always a source of tension or conflict, then your kids are taking note.  Even though you don’t always agree, make it your goal to demonstrate oneness.  What your kids see you do is a lot more powerful than what they hear you say.

    4. Model the budgeting process.

    See Also: Keys to Budgeting Success

    If your kids see you always spending without any mention of a budget or the trade-offs that come with living on a spending plan, then you are modeling that for these future adults.  Get them involved in the family budget, at least from an awareness standpoint, if not from a decision-making standpoint.  For example, engage them in the family entertainment budget.  Let them be a part of making the decision to have pizza and watch a movie at home three times in a month versus going out to a movie and pizza once since that’s all the budget allows.  Give them opportunities to learn about the trade-offs that exist when you live on a spending plan.

    5. Give an allowance based on work completed.

    Don’t give your kids money just for being a part of the family.  Instead give an allowance based on chores they do around the house like taking out the trash, or cleaning their room or mowing the grass.  This will help them understand that money is earned and not just given to them.

    Don’t wait until your kids are in college to teach them about money.  Get started now.  Put these 5 tips into practice and someday your adult children might say, “I’m so glad my parents taught me how to manage money God’s way.”

    Learn proven principles and practical wisdom for raising God-honoring, financially healthy kids.  Build your children up by giving them a solid understanding of how money works and how to make wise choices in the next Raising Financially Healthy Kids seminar.

    Register for a Raising Financially Healthy Kids seminar today!

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  • Keys to Budgeting Success

    Keys to Budgeting Success

    If you are like most people, you cringe when you hear the word budget. And you’ve probably already thought of three reasons you don’t need one. Or maybe you know it’s something you should do, but never get around to actually doing it. No matter what your story is, it’s time to accept the reality that we all need a budget!

    Be sure you know the condition of your flocks, give careful attention to your herds. (Proverbs 27:23 NIV)

    Budgeting is an essential part of a faithful steward’s life. God has entrusted everyone with resources, and the Bible calls us to carefully manage it (Proverbs 27:23). Budgeting is an important spiritual discipline that puts God in charge of your finances.

    If you aren’t already living on a budget, then the process of actually creating a budget might seem overwhelming. And the thought of sticking to a budget may feel like the equivalent of sucking all the fun out of your life. But a budget isn’t about complicating your life. It actually makes your life easier by knowing where your money is going. Don’t think of it as rules for how you can’t spend your money. It’s really giving yourself permission to spend because you’ve planned ahead of time.

    So let me answer a few questions and share some keys to budgeting success.

    When should you create your budget? Before the beginning of each month you should sit down and make a plan for your money. If you are married, then do this together with your spouse. Turn budgeting into a habit by making it a recurring monthly event on your busy calendar. I suggest doing this 5 to 10 days prior to the first day of the month.

    How do you make a budget? Start by figuring out how much money you have to work with for the upcoming month. And be sure to include all sources of income. Include your income, your spouse’s income and any other money you plan to take in (i.e., yard sale earnings).

    Next, spend every dollar on paper, on purpose. Give every dollar a name. When you finish planning for the month ahead, you should be able to subtract your expenses from your income to equal zero. Your budget isn’t complete until there is a plan for all of that month’s money.

    Honor the Lord with your wealth and with the best part of everything you produce. (Proverbs 3:9 NLT)

    The order in which you budget money is important. Give, then save and then spend — in that order. The Bible instructs us to give to God first (Proverbs 3:9).  Calculate 10% of your total income for the month and set that aside for your tithe. Saving should be your next priority. Pay yourself and prepare for future needs and wants. If you don’t budget giving and saving first, then you may spend everything and have nothing left. Now you are ready to allocate money to all the other categories where you will spend that month.

    What should you do when you get to the bottom of your budget and there is money left over? Well, after you finish your happy dance, make sure you put that money to good use. Maybe add some money to savings for a future expense. Or give yourself some “fun money” that month and satisfy your desire for (planned) spontaneity. However, be prepared to make some cuts when your expenses add up to more than that month’s income.  Don’t budget to spend money you won’t have.

    Budgeting isn’t a one-time exercise. Each month has a different set of expenses. Some expenses are fixed and remain the same each month. But many budget categories are flexible and will change from month to month. In September we celebrate the birthday of several friends and family, so our budget for gift giving increases. August is back-to-school month and that means planning to buy lots of school supplies. Budgeting apps like EveryDollar by Ramsey Solutions make it easy to create a budget each month and track your spending while on the go.

    When you first start living on a budget, expect it will take a few months to get the hang of it. You may forget to plan for an expense or overspend in some category, but don’t get discouraged and give up. Just review your budget and make adjustments. With a little patience and some determination, in a few months, you will have a budget you can rely on and some new positive money habits.

     


    Get more help with budgeting by participating in next Financial Peace University class. Learn biblical principles for managing money, spending and saving wisely, and eliminating debt during this 9-week class.

    Register for Financial Peace University today!

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