Money Management for Christian Families

It's funny how many "catchy" titles I run through my head ("Faithful Finances", "Financial Faithfulness", "Money Matters", and worse.. before I settle on something as basic as "Money Management for Christian Families". 

I think it's safe to say, that I am not the "catchy title" person. I'm the "this article is obviously about exactly what the title says" person. 

While that may draw less eyes, I am confident it will draw the right eyes, and that is far more important to me anyway.

So, why's the Christian parenting company posting about finances anyway? What does that have to do with parenting? 

A lot, actually. 

Scripture is clear on matters of our finances, and society is constantly pulling us in the opposite direction. This is one of the most difficult areas to stand firm against worldly things, and one of the biggest battles families are facing in general, including Christian families. 

Immediate gratification is the norm and patience is becoming a lost art. 

"49 convenient payments of $9.99" leads people to pay 300x the worth of an item just to get it right away. 

Enticing marketing can trap us in bad financial decisions very easily, by making us feel that we're getting a good deal. 

"Today only, save 50% on this tv that's usually $400- Today only, get it for $200" (This makes us want to buy it, even though it's only worth $200 anyway, and many companies raise the original price JUST to be able to market these "deals". 

"Buy this shiny new car for 0% interest and 0% down today!" Well, that sounds amazing, doesn't it? Not when you now have a $500 car payment that you didn't really need. But marketing "Pay $500 a month for 6 years and over that timeframe, pay off the worth of the car multiple times over" doesn't pull in as many customers. 

We know that as parents, we have a responsibility to guide our children in the right direction. But how do we do that, if we ourselves are still fighting the current being pushed in the wrong direction ourselves?

Today we're going to talk about what God desires for our finances, some practical ways to accomplish that, some of the top money lessons we need to teach our children (and how), and some additional resources I recommend that could help you moving forward. 

If you haven't heard our podcast episode 'Contents of the heart' yet, click here to listen. This covers what scripture says about the way we view our resources.  It is a lesson on the true intentions of our hearts and the impact those intentions have on our lives and our relationship with God, a reminder that everything we have belongs to God, a success story in praying for our children, and a role model in selflessness and serving others that we can follow.

 Children learn primarily from what they see in the home, so know that your children are already watching and learning your money habits. 

How can we engage with our children about finances?

Did you know that more than 80% of American's feel that high school students should be taught financial literacy, but less than half of states require any type of course for this. 

The responsibility falls on parents most of the time, and even if schools do teach finances.. How do we know what they are teaching aligns with our family values or our Biblical values?

There is a nearly 100% guarantee your child will need to understand and learn to manage finances, so how can we best set them up for success?

My advice will always lean towards making important lessons fun and engaging to the best of our abilities. 

Teaching them about money doesn't mean giving them an allowance for doing nothing and then taking half of it back to teach them about taxes. (Yes, I'm sure).

Money management can be a fun part of daily life that allows you to also do activities together and build your bond at the same time. Sounds like a win-win to me. Including your children in your money management can also have an added benefit of keeping you on track and holding yourself accountable. 

Let them learn within your home, within your boundaries, vs. in the world making bad financial decisions that will affect them for years. If you've made bad money moves, tell your kids about them and what you'd do to avoid them in the future.

The main categories you need to cover are:

1. Understanding money

2. Earning money

2. Giving money

3. Saving money

4. Spending money

5. Investing money

Understanding money: 

Within this category, there are quite a few subcategories, but we're going to try to keep it simple. Of course, there will always be more we can all learn depending on our individual needs and interests. 

First, we need to understand the basics. Familiarize yourself with all forms of currency used in your country. 

Second, it helps to delve into economics, at least on the surface level. Learn about supply and demand, inflation, and interest rates.

Third, understand the main financial systems, such as banks, stock markets, and other intermediaries; and financial instruments, such as stocks, bonds, derivatives, and mutual funds. Learn what they are, how they work, the risks, and the rewards.

Fourth (and most important across all top categories, in my opinion), is understanding budgeting and personal finance. Learn how to create a budget, track expenses, save, invest, and manage or avoid debt. 

You can allow your child to help with your budget each month, or give them a set amount that they are responsible for budgeting themselves. One of my favorite exercises for children is to give them a grocery budget and let them go through the process of making a grocery list that will provide for the week and that stays within the set grocery budget. This is one of the best ways to learn hands-on how to adjust as needed, make smarter choices based on lower-priced options available, keep track of what you have, and understand that your final price (with taxes) must fall under budget. 

Remember that the goal isn't to make them struggle and criticize their choices. The goal is to do something engaging, hands-on and educational together, so that you can bond and educate simultaneously. Keep that in mind as tensions can sometimes rise. 

You can also let them sit with you as you pay bills, make calculations and make decisions. 

1 Timothy 5:8 "Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever."

Ecclesiastes 5:10 "Whoever loves money never has enough; whoever loves wealth is never satisfied with their income. This too is meaningless."

Earning money: 

It's very important to learn how and why we earn money. I personally don't like connecting day-to-day chores with allowances. I believe in teaching that everyone who lives in the home is responsible for maintaining the home, and the payment for this is a nice, tidy, well-maintained home. No one gives you a paycheck for this as an adult, and I don't want to raise children who expect an external benefit for things they are going to have to do anyway to be productive members of their household. (Side tangent)

But allowances can be great if that's what you want to do, and if you maintain set guidelines for that earning. In my home, I would have a list of things can be done outside of normal household chores for earning money. This will be largely age dependent. Let's say the household chores for your child are to sweep the main living areas in the evening, fold and put their own clothes away, and keep their room tidy. I wouldn't pay them for doing those things, but I would expect them to be done consistently and before moving on to the optional, paid tasks. 

If they want something outside of the normal parental expenses, this would be a good chance for them to earn their own money to pay for it. And a great chance to learn that earning it all along will ensure it's there when you want it, vs. waiting until you want something that costs $100 when you have $0 and now it will take you a few months to earn that much. 

These could be things like folding and putting away other laundry outside of their own that can earn $1 each day they assist with this, $2 for washing the dishes after dinner, $5 for washing the car, $10 for helping with yard work. Whatever works for your family, but nothing that hinders your own budget. This is something to set at a max earnable amount per month. At your job as an adult, you may have the opportunity to work up to 40 hours, so your earning potential is capped. Your child's earning potential should be capped at whatever you are able to put in your own household budget as a line item for their earnings. It's okay if you only have $5 a week that you can spare, and you offer them 1 paid option per week, where they can earn up to that $5. 

Some expectations on your end:

- Let their earning be optional. Don't require the paid opportunities be done. But remain firm that if they did not earn money for their "extras", they won't be able to have them until they do. That puts some incentive behind the opportunity. 

If your family is okay with debt, you could offer a line of credit. "I'll let you borrow the $20, but now you have 1 month to pay it off, or x% interest is added." Do not let them continue utilizing this method without limits. And do not make exceptions for the guidelines you set when they agree to it. These things will be essential to actually learning from the practice. 

Once your child has earned their money, it's time to learn what to do with it. They may be surprised to learn it's not quite as simple as buying whatever they want. 

Luke 16:10 "Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much."

Giving money: 

Everyone should incorporate giving into their money management plans. Something beautiful happens in the act of giving to others. 

Since we're a Christian company, obviously this is where we talk about tithing. The Bible advises us to give first to the Lord and guides us towards giving 10%. I support tithing 10% to the Lord, but I don't necessarily think that has to be straight to the church if you don't have one you know and love. There was a time when I was between churches after having moved, and I didn't know where to send my tithe. I didn't want to give it to a place that I didn't personally believe in their messages and missions, and unfortunately, if we're being honest, not all churches are created equal. During that time, I gave to a Christian radio station because I loved their mission and listened to them often on my daily commute. I still felt I was meeting the guideline of giving to God's Kingdom. I now have a church that I love and give happily to. Opinions on this may vary. I won't tell you exactly where to put it, that is up to you.

But I will encourage you to tithe. Listening to the linked podcast episode above will help you understand why, but to put it simple...nothing we earn is ours. Nothing we own is ours. Nothing in our bank account is ours. Everything we have is possible because of the Lord, and everything we have belongs ultimately to the Lord. To give 10% towards the betterment of His Kingdom is a SMALL fraction of what we only have because of Him. Tithing puts this awareness into action and allows us to live more selflessly- more like Jesus. 

I know being asked for money can sometimes feel icky. Pray and ask God for discernment to feel sure you're giving to a place you can trust. And then manage HIS resources well. It may hurt to make these adjustments to your budget if you aren't already doing this. I promise you though, it is worth it. God WILL provide. And He rewards us for trusting Him in this way. 

Outside of that, being able to give in general is amazing. Imagine how much it would hurt your heart to see someone in TRUE need, who TRULY deserves and needs.. and you DEEPLY desire to help them.. but you can't. Whether that's because you are tightly guarding your finances out of fear or because you haven't managed your money well and simply can't make it work. 

I like to have a separate savings where I set aside a "giving" budget. I put a dedicated, budgeted amount in this each month, and I leave it alone. I ask God to make it clear when that is needed, and I use it for those circumstances. This means when I see a need, I can give contentedly, happily, selflessly, and without it hurting my day-to-day or placing anxiety in my heart of what I just had to cut out of my budget to make room for that gift. 

Helping your children make this practice a habit as well by encouraging they tithe a percentage of their earnings will pay off in countless ways. 

Proverbs 3:9-10 "Honor the Lord with your wealth, with the firstfruits of all your crops; then your barns will be filled to overflowing, and your vats will brim over with new wine." 

Saving money:

Saving is so important! We should all have emergency funds that are available to us in times of need. Nothing is more stressful than a major expense coming up and having no idea how to make it happen. Teach this to your children. They may have $40 saved, and want something that costs $39. Stress the importance of setting a keeping a certain amount set aside for unexpected circumstances. Spending everything we have is not a smart habit to cultivate. Make sure you're demonstrating this in your home as well. Just because you have it, doesn't mean you comfortably have it.

If spending this amount is going to leave you in a bind when something unexpected comes up next week, you would be wise to reconsider. 

Proverbs 13:11 "Dishonest money dwindles away, but whoever gathers money little by little makes it grow."

Spending money: 

Finally! We get to spend some money. Most of this is towards expenses that your child won't have and shouldn't necessarily have. We want them to get to enjoy their earnings, after all. They need to find this practice fun and beneficial in some ways, or they won't have a reason to work for the earnings. I would include them in your monthly budgeting for them to truly understand how spending works.

How do you decide what to spend in each category? 

How do you keep track of what you've already spent?

How do you choose when you are able to buy a want after all the needs are taken care of?

Let them be included in this, even if you make a sample budget that doesn't include your true income #'s, if you wish to keep this private. You can also break it into percentages if that's easier for your family.

Also- While I don't agree with sharing adult burdens with children such as, "I don't know how I'm going to pay for food this month." I do think it's okay, and encouraged even, to let them be a witness to you holding firm to your budget. 

They learn from watching, after all. If they ask last minute on the way home from school to go out to their favorite restaurant and you don't have the money set aside in your budget for that this particular month, tell them. "Sorry, that's not in the budget this month, but I will try to work it in next month. What if we stop by the grocery store and get xyz instead?" They're seeing that sometimes you have to say no. Sometimes you have to delay. Money isn't infinite. There's a valuable lesson in that. 

Matthew 6:24 "No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money."

Luke 14:28 "Suppose one of you wants to build a tower. Won't you first sit down and estimate the cost to see if you have enough money to complete it?"

Investing money: 

This is another category that will work best in practice through your budget or your sample, practice budgets. Your child doesn't necessarily need to open a brokerage account or invest in a 401k. 

Let them see you do this - watch how you decide what to invest in - why - when it will benefit you - and so on. 

It's important to explain that none of us can work forever, so preparing for the future by making wise choices in the present is essential. 

Proverbs 21:20 "The wise store up choice food and olive oil, but fools gulp theirs down."

I sincerely hope you've found value in this information and gained some ideas for application in your home. 

If you've read this far, I want to offer you a free gift! Our 'Family Devotion Starter Kit' is a curated collection of resources that will aid your family in introducing God into your day-to-day. The kit includes an engaging devotional, an interactive activity, and a discussion prompt that will bring your family closer to God and to each other.

Now, as promised, I will link a few resources that could be beneficial in delving deeper into managing your finances as a Christian family!

These are affiliate links, so it is possible that I could earn a small commission if you purchase using them. However, I chose only items that I either personally own and love in my own home or would glady purchase for my own home. Feel free to search them up separately, or use them as an idea board and branch off to different resources. I am providing them only to help you get started. If you do use my links and make a purchase, thank you! If not, that's totally fine. 

Books are a great way to learn more!

The Richest Man in Babylon is a surprisingly highly-relevant read that will help you understand the Biblically-supported rules of money and how to succeed financially. 

Rich Dad, Poor Dad is a great book that delves into what exactly we should be teaching our children financially to give them the greatest chance of success in the future. 

The Total Money Makeover is packed full of proven steps that can get your family on track with their finances. 

Games are a fun way to learn more!

This Financial Literacy Memory Game can help your kids learn financial literacy in an easy, fun way that can be done together as a family!

A classic Monopoly board game allows your family to spend time together and learn life/money skills in the process. A win-win!

Organization can make things 10x easier!

Keep track of your upcoming bills in a family-accessible way with this Dry Erase Calendar Kit!

This MoonJar for Saving, Spending, and Sharing is a kid's saving method that allows them to keep their $ separated into top 3 categories, making the process simple and fun! 

What steps towards improving money management in your home, and aligning your finances with God's guidance, are you planning to implement right away?

If you haven't claimed your free 'Family Devotion Starter Kit' yet, click to download that now and get started bringing God into the day-to-day lives of your family!

With love,

Katy, Founder/Owner of Covenant Collections