With the cost of education skyrocketing over the past decade, you will probably want to begin saving as soon as possible if you plan to help your children with the cost of their college education. Whether you want your child to attend a Christian college or a secular school, you probably want to add a budget line item for their college savings so that it is a regular part of your financial plan.

For the 2012-2013 academic year, the average cost for a standard academic year of college (including books, tuition, room and board) was $22,261 for in-state public tuition and $43,289 for a private school, according to collegedata.com. Despite the expense, it is possible to fund a college education on less than $50 per week.

Start Small — Finish Big

The earlier parents establish a saving plan for college, the more time there is to watch investments grow. Even small regular deposits over 18 years can pay for the first full year of college or more. For example, if you start making monthly deposits of $50 into an account earning 2% (the top rate for most accounts today) when your child starts first grade, your investment will grow to more than $8100 before high school graduation. Double that to $100 a month and the account will be worth $16261 — more than enough to cover the first year if your child lives at home.

Take Advantage of Tax Incentives

A saving plan that allows tax-free distributions called the Coverdell Savings Plan allows parents to put up to $2000 a year (that is less than $40 a week) into an interest-earning account. The funds are not tax-deductible; however, your child will not pay tax on the earnings as long as the money is used before the child reaches the age of 30 and the money is spent on education.

Series EE Government Bonds

With interest at such low rates, some people don’t consider government savings bonds a great investment. However, this is one tool where you are guaranteed that your invest will at least double in a twenty year window.

You buy EE Bonds at half the face value — $25 for a $50 bond, $50 for a $100 bond, and so on. These bonds start earning money immediately and interest is compounded twice each year, so you earn interest on interest. You can pay tax on the earnings each year, or wait until your child cashes the bonds to pay for college.

Interest rates are fixed, but if the interest surges in the future, you can sell the bonds early and buy new bonds at a better rate. There is a penalty of 3-months earnings if you cash out within the first five years. Unless interest rates return to 4% or 5%, cashing out probably isn’t the best option.

Another Look at Simple Savings

If you watch interest rates carefully and convert simple savings accounts into a CD Laddering plan when interest rates go up, you can earn more money. Even increasing your weekly deposits slightly can make significant differences. For example, if you start your savings account with $1000 today in an account paying only .25%, and make weekly contributions of $40 over the next ten years, your balance will grow to more than $22,000.

One popular savings challenge that makes its way around the internet every now and then is the weekly savings challenge. The basic premise is to deposit an increasing amount each week. Start with one dollar the first week, two dollars the second, up to fifty-two dollars the last week of the year. Even without interest, you save almost $1400 each year.

We suggest following the same goal, except in reverse. This way, it will get easier and easier to save the money. Plus, you’ll get more of a return on the interest you are earning, assuming you are using a savings account. If you use that money to buy bonds, you are on the way to doubling your investment.

There are many ways to fund an education from 529 state sponsored plans and Coverdell accountsm to CDs and government bonds. The key is to get started early!

FaithWorks Financial is proud to sponsor a $1,000 gift card giveaway!

We realize how difficult the Christmas season can be financially, so we’re teaming up with several great Christian bloggers to give away a $1,000 Visa gift card right in time for Christmas.

Enter the giveaway by following the instructions in the Rafflecoptor form below. Be sure to sign up for the FaithWorks Financial newsletter and like us on Facebook to increase your odds of winning.

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For most people, financial uncertainty is something that is faced at one point or another. For Christians who go through financial difficulties, we have a loving God to rely upon, to give us faith that all will turn out according to His will.

A friend recently confided in me that he has not finding himself able to trust God’s provision. A year ago, his home’s septic broke, and he did not have the money to fix it. Facing another winter of showering and laundering at other people’s houses, he began doubting that God would provide. He started Christian financial counseling and eventually managed to save enough money to repair the septic, but he felt that he had been abandoned by God during his time of need. How can he and others like him trust God when it seems like He isn’t providing?

1. Keep a Gratitude Journal

If you are reading this article, you have the subject of money on your mind. Undoubtedly, financial hurdles are a reality in your life, be it in the past or present. When financial insecurities arise or you worry about how you are going to make this months credit card payments, take a few moments to count the dozens of blessings you do receive every day. Write down even the simplest of things- that meal you had with a friend, the unexpected refund from a utility company and the blanket you pick up instead of turning on your heat on a cold day. These things that we often take for granted are blessings.

As you focus on your blessings, your faith in God’s provision will grow. Starting every day with a gratitude journal will put you in good spirits.

2. Pray Honestly

In addition to recording all the ways God provides, consider writing down your emotions and thoughts. Like the psalmist David, your honest emotions become prayers as you pour out your fears that God won’t provide and your frustrations about your financial situation. If possible, share your struggles with a trusted friend or and pray together regularly.

3. Meditate on Scripture

God reminds us in His word that He does provide. Meditate, think on and memorize powerful scriptures like:

Matthew 6:28-31: “And why do you worry about clothes? See how the flowers of the field grow. They do not labor or spin….If that is how God clothes the grass of the field, which is here today and tomorrow is thrown into the fire, will he not much more clothe you—you of little faith? So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’”
Luke 12:24-26: “Consider the ravens: They do not sow or reap, they have no storeroom or barn; yet God feeds them. And how much more valuable you are than birds! Who of you by worrying can add a single hour to your life? Since you cannot do this very little thing, why do you worry about the rest?”
Philippians 4:19: “And my God will meet all your needs according to the riches of his glory in Christ Jesus.”

4. Speak with a Christian Debt Advisor

Approaching finances from a Christian perspective is critical as you trust God to provide. You may need assistance in maintaining a household budget, reducing debt or talking with your spouse about money. Seek godly counsel as you wait on God to meet your needs. It can often be difficult to reach out to a stranger for help, but in the end you may find the right solution for you.

God’s timing is always perfect, but it is very easy for us to question whether or not He will provide. Instead of doubting, take advantage of these four tips that will build your trust. Then, wait with patient trust for His provision.

There is no denying that attending college is a great way to pave the way for your future. Aside from the education you receive and the benefit of (usually) having an easier time securing a job than without a diploma, you gain great social experiences and make lifelong friends.

On the flip-side though, it’s very easy to accumulate debt along the way. Depending on the school, curriculum and other factors, this can put you in a major financial bind after graduation. Here are some ways to pay off student loans faster so you can live a financially sound life.

Pay During the Grace Period

Many student loans offer a grace period where you aren’t required to pay until six months after graduation. This is designed to allow you time to find a job and get financially stable before payments begin.

If possible, you should go ahead and pay at least a little something during this time because you can lower your principal and have an edge once the grace period is over. This also get’s you in the habit of making those payments before there are penalties for not doing so.

Not to mention, you are creating great financial habits very early on and making decisions such as this now will lead to continued wise decisions in the future.

Look into Student Loan Forgiveness

Depending on your profession, you may qualify for student loan forgiveness. If you are a full time public servant, in fields such as education, community service (police, firefighters), the non-profit sector or even many church positions, you may be eligible to have a portion of your student loan debt forgiven after you have made a certain number of payments. This is a tremendous benefit to those who are in these positions, as it can save you tens of thousands of dollars.

Student Loan Consolidation

This strategy involves combining two or more loans into one for a more simplistic repayment structure. The benefits of this option are that it can often reduce your interest rate and it streamlines the payment process so you don’t have to remember to write checks for multiple loans each month. There are different programs available for different types of loans. Our Christian debt relief company can provide further insight into student loan consolidation and help you decide if it’s right for you.

Here is a bit more information on a Federal Student Loan Consolidation.

Get a Side Job

Another effective way to quickly get out of debt is to earn some extra income on the side. It might be a part-time gig, doing odd jobs or even starting a small business. This doesn’t need to consume your life, but putting in some additional hours on top of your regular job can mean years of difference in eliminating student debt. Paying extra usually goes right toward principal. Reducing your principal balance will also minimize interest expenses, which means less overall money to pay.

Put God First

Putting God first and being charitable should be the basis for any financial strategy. As we see written in Matthew 6:33, “But seek first his kingdom and his righteousness, and all these things will be given to you as well.”

With the hectic daily grind that has become a part of so many peoples daily routines, it is no surprise that eating out is one of the top budget breakers. When you are running around town and have your kids in the car howling about how hungry they are, a quick pizza run may cause the kids to cheer, but your budget will not.

Last minute dining out decisions can wreak havoc on a carefully planned budget or Christian debt management plan. For families attempting to eliminate debt, this is an added expense that can kill your dream of being debt free. Eating out is such a sneaky expense, because we can always justify needing to eat. You must consider however, food purchased in a restaurant is almost always significantly more expensive than the same type of meal prepared at home.

Why Do You Eat Out So Much?

Pinpointing your motives behind your actions is the first step toward changing those actions. Many individuals cite eating out as more convenient than cooking at home and that it saves time. Forbes author Laurence M. Holland points out that when you calculate the travel time, waiting for a table, waiting to give your order, waiting for your food, and then waiting for your bill you ultimately save no time at all. Not to mention the fact that when you are eating at home, you can also be multi-tasking on other things such as catching up email, or helping your kids with their homework. Eating at home ultimately saves time.

Other individuals may say that they eat out so often because they just don’t like to cook. This is a situation where you must evaluate how important it is that you be successful with your Christian debt management program. If you are truly committed to debt elimination, then doing something you don’t necessarily like to do should not seem like that big of a sacrifice. The truth is people eat out a lot because it is less work for them. This, however, is not a good reason to endanger your budget or your path to being a debt free Christian.

How to Ensure You Eat At Home

Make a Plan

Planning to eat at home more often takes a little organization. You must have a plan. Taking thirty or forty-five minutes once a week to make out a menu and a grocery list will save you a lot of time and money later on. Make sure your menu is specific and that your grocery list will accommodate all your meals. If you are new to cooking, take a look at websites such as allrecipes.com or the Food Network for ideas and inspiration, or do a search for “budget friendly meals”.

Stick to your list

Now that you have your list put together, it’s time to go shopping! If you made a careful menu, then the items on the list will feed your family for that week. You will not have a need to buy other items. Many parents find that bringing the kids with them to the grocery store often leads to overspending. If going alone will ensure you spend less, then go alone.

Plan for eating out.

The fact that you are going through a Christian debt management program does not mean that you cannot still enjoy a meal out on occasion. If your budget has the room for it, set aside some money for eating out each month. Every situation is unique and your personal goals are going to determine the frequency at which you can enjoy a meal out. You may find that you can actually budget for a pizza night each week. We suggest that you are careful to be eating out because it was planned and budgeted rather than because you weren’t sure what else to do for dinner that night.

If you follow these suggestions, you can prevent one of the top budget breakers from getting between you and your financial goals.

It is very well known that most people enjoy being around like-minded individuals. It provides common ground, shared interests, and a basis for expected values. This holds true in general peer-to-peer relationships as well as in business relationships.

As a Christian, it is great to be afforded the opportunity to find companies that have the same values as you. In some instances, it just doesn’t make sense to seek out a Christian company. Though it is always great to support a Christian company, whether or not the company who makes your coffee table claims to be a Christian company is not going to have much of an impact on your experience as a consumer. Other times though, it can totally transform your experience.

Here are 4 instances where seeking a Christian company makes sense.

Christian Daycare

Where you send your young children to school is a huge decision. These are the folks who are going to be giving your child their first regular social interactions. It is great to know that not only do the teachers/caretakers have similar beliefs and values to you, but the other children are probably being raised in a similar manner to yours.

Christian Counseling Services

Life get’s tough, and sometimes it is helpful to seek professional counseling to help us navigate those difficulties. For Christians, it can be incredibly helpful if the person who is helping you try to find the needed direction in your life is also seeking His guidance. Having biblical references accompany clinical suggestions can make the appointments doubly effective.

Christian Real Estate Agent

Buying a home is a huge deal, and while this one may not hold quite as much weight as the others, it can be very helpful to work with a Christian Real Estate Agent. For most people, their home will be the biggest purchase they make in their lifetime. It gives a great deal of peace of mind to know that you are working with someone who lives their life in accordance with Christian principals.

Christian Debt Relief Company

If you are struggling with your finances, a Christian Debt Relief company can help you to put you on track to reach your financial goals. Many debt relief programs are long-term and often last 3-7 years. Since you will be working so closely with the company and it’s financial advisors, it is very helpful for them to share your values and principles. Plus, handling your finances according to Biblical principals– such as including a tithe in your budget– is not always in line with suggestions made by non-Christian companies. When working with a Christian company you know that your counselor not only understands where you are coming from but even approves of it!

While we cannot help you with the first three, if you are in need of financial guidance and would like to work with a Christian company, please take a moment to speak with one of our Advisors for a free consultation.

Seeking out a Christian company does not always make sense in todays world. The more important the decision is though, the bigger of a factor it becomes.

“But godliness with contentment is great gain. For we brought nothing into the world, and we can take nothing out of it. But if we have food and clothing, we will be content with that. Those who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge people into ruin and destruction. For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.”
1 Timothy 6:6-10

There are many reasons individuals find themselves in the midst of financial difficulties. Some of these reasons are unavoidable such as medical expenses from an illness or a job loss. However, oftentimes financial difficulties are the result of some poor choices made along the way.

At the root of these poor choices, discontentment is often found. After all, the desire to have a nicer car, bigger house, more advanced degree, nicer or longer vacations, better clothes or to live in a nicer area very often stem from discontentment with a current life station. Discontentment can very easily lead to the accumulation of excess debt, and eventually financial hardship.

Several years ago, a study stated that Americans who made $25,000 yearly felt they needed at least $54,000 to attain their American dream while individuals who made $100,000 felt it would take at least $192,000. The interesting point about these numbers is that each group of individuals felt it would take almost twice as much money as they were currently receiving in order for them to reach their financial goals. In other words, no matter how much money a person made, they felt they needed more to be content. While this story is a few years old, the message is still valid today.

Here are a few actionable suggestions on how to become financially content:

Lower your expectations

Unrealistic expectations set yourself up for disappointment and failure. Be reasonable with your goals and work hard to achieve them.

Image credit cnn.com

Help Others

Few things are more meaningful than helping someone in a time of need. Whether it be something as simple as lending an ear or something much more, getting outside of ourselves and our circumstances will almost always lead to renewed gratitude. This is one we can learn from the Pope.

Trust God

“I am not saying this because I am in need, for I have learned to be content whatever the circumstances. I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want. I can do all this through him who gives me strength.”- Philippians 4:11-13

This verse shows what God desires we understand about contentment. He teaches in His word that we should strive to be content with our situation in life. Does this mean we cannot strive to better our circumstances and work to move up in the world, or should never own anything nice? No, this simply means that God wants us to only acquire what we can afford and to be pleased with what gifts we have been given.

If you are finding that you are overwhelmed with obligations from your past discontentment, you may want to seek help through the FaithWorks Financial Christian debt management programs. Once you have gotten out of debt, you can then strive toward living a financially content life.

No matter where you are in your financial journey, those who practice Christian debt management principals will often share similar traits. Perhaps you are doing great with your financial goals and have had the burden lifted off of you. Maybe you’re struggling with your obligations and are in need of a Christian debt relief program. Either way, your personality will most likely change as your financial situation changes.

Consider these common traits of debt-free people and discover if you are already living in the freedom, or take a glimpse at what lies ahead of you on your journey.

Practical:

They tend to understand the meaning of value in every item they purchase. For the individual living on an average American income, practical purchasing decisions are a must have trait for anyone who wants to live a debt free life.

Self-reliant:

Being debt free means that you do not have to rely on credit cards from month to month. A cash-only system means that you are self-reliant, and more importantly, God-reliant in your spending habits.

Patient:

Debt-free people deny instant gratification to continue staying out of debt. The temptation to impulse-shop may arise from time to time, but out of control spending does not exist for those who become and stay debt-free.

Self-confident:

It is easy to get down on yourself when you are struggling financially. Once you are utilizing Christian debt management principals, you will regain your self-confidence by taking care of your debt.

Responsible:

Catastrophes are unpredictable, but in most cases, debt-free people set enough money aside in their emergency fund that they can survive the difficult days.

Charitable:

Since there is no longer a huge credit card bill each month, debt-free people often experience an increased ability to share with others, lifting everyones spirits and helping others in their time of need.

Not materialistic:

Luke 12:15 states, “…‘Watch out! Be on your guard against all kinds of greed; life does not consist in an abundance of possessions.’” Those who are free of debt acknowledge this and usually live within their means, the way God intended His children to live.

If you read this list and found yourself wanting to be on the other side of the fence, contact a Christian debt relief counselor at Faithworks Financial today so you can start developing these traits in your own life.

There is a lot of hype about student loans these days. After all, there is currently over 1.1 trillion dollars of student loan debt in America. As a result, there have been plenty of advertisements and promotions about consolidating your Federal student loan debts. Today, we’ll explore how FaithWorks can support you in exploring Christian student loan consolidation!

Debt consolidation is the act of taking multiple loans from varying financial institutions and combining them into one single loan. FaithWorks helps people find debt consolidation loans to consolidate high-interest unsecured debt like credit cards and personal loans. The same concept works for student loans, too.

The debt consolidation process issues a new loan with a single, fixed interest rate. Ideally, consolidating debt should give you a lower monthly payment, lower interest rates, and simplicity in the form of one single monthly payment. When done right, it can do wonders for your cashflow and your budget.

For students at colleges and universities all around the country, a federal student loan consolidation can be a great way to relieve some of the burden that comes with paying for higher education. However, there are a few very important factors that you should consider to help make sure that debt consolidation is right for you in the first place.

Your Current Monthly Payment

For starters, take a look at your current student loans and see if your current monthly payments are actually manageable. Most students don’t have to begin repaying their loans until they have either dropped below full-time status or have graduated from their university. If you have fair interest rates and you are not having a difficult time keeping up with your loan payments each month, you may not have much to gain from a consolidation in the first place.

The Number of Loans You Have

One of the main benefits of loan consolidation is that multiple bills suddenly become a single bill due on the same date each month. However, if you only have one or two loans or are having no problems keeping track of your current commitments, student loan consolidation may have a lot to offer you. The bigger benefit is experienced by people who have four or more high-interest student loans that they are making payments on each month.

Current Interest Rates

Another factor that you’re going to want to consider is the interest rate that is attached to each of your current loans. People with high or variable interest rates stand to benefit the most from a federal loan consolidation. If you have reasonable fixed interest rates on one or more of your loans, you may actually lock yourself into a higher rate if you end up consolidating. If you find that your interest rates average over six or 7%, a consolidation may be worth taking a look at.

The Long Haul

You will have to consider the general basis of a consolidation- restructuring your term. If you only have a few payments left it may not make any sense for you to consolidate. If you have quite a long repayment ahead of you though, and would benefit from that lower interest rate and monthly payment, you may want to explore the consolidation or other student loan resources.

Christian Student Loan Consolidation

You may have already asked yourself by now, “What’s the difference between a Christian student loan consolidation and a regular student loan consolidation?”. The simple difference is that you will be working with somebody with like-minded values who will go the extra mile to help you solve your debt situation and present you with honest information. In fact, anyone can consolidate their federal student loans on their own directly through the Department of Education. FaithWorks is here to help you decide if student loan consolidation is right for you.

A student loan consolidation can often prove very effective in simplifying your finances and help you get on sound financial footing. If you would like more information please complete the form on the right hand side to request a call from a FaithWorks Financial Christian Debt Advisor today!

Massive student loan debt seems like a fate etched in stone for college graduates everywhere. It can take several years, even with a high-paying job, to eliminate student loan debt. Some post-graduates find themselves wondering if the cost of their education was even worth the effort. The good news is making slow and steady repayments is not the only solution. Many people do not realize that volunteering can also erase student loan debt.

Many organizations will eliminate a portion of student loan debt to college graduates who volunteer their time and talents for a specified period of time. The spirit of volunteering aligns with basic Christian debt management principles. Serving others to erase debt shows an outward commitment to imitate the deeds of Christ. This is a great way to help others and do good in our world, while getting some assistance with those student loan obligations.

The following organizations offer student loan debt relief through volunteer opportunities. Please note that their programs may change overtime, so we cannot guarantee accuracy of the following statements. We have provided links to each though, so feel free to review the organizations direct website for more information.

Peace Corps

As a volunteer program run by the U.S. Government, the Peace Corps sends volunteers to more than 70 nations. Volunteers work worldwide to improve education, agriculture, business and reduce hunger and poverty. Peace Corps volunteers are trained for three months and serve for a minimum of 24 months. The Peace Corps will repay up to 70 percent of qualifying student loans, depending on your length of service as a volunteer.

National Guard

Serving in the armed forces can also reduce the burden felt from student loan debt. College graduates may be eligible to receive up to $10,000 in student loan repayment in the Army National Guard. The Air National Guard has a similar student loan reimbursement program in place for college graduates. These programs can vary depending on the terms of recruitment, so it is a good idea to check with your local National Guard recruitment offices for more information.

AmeriCorps VISTA

A domestic version of the Peace Corps, AmeriCorps VISTA is dedicated to assisting nonprofit and faith-based organizations in helping low income individuals and communities eradicate hunger, homelessness, poverty and illiteracy. At the time of this writing, for a full year of service volunteers receive $4,725 to be applied toward student loans. In return, volunteers are expected to commit to 1,700 hours of community service.

Medical service

Added medical or nursing school debt can make repaying student loans more difficult. The good news is multiple options are available for new doctors and nurse to get out from under this burden. Many programs offer debt repayment for practicing in places lacking adequate medical care. Some agencies, such as the U.S. National Institute of Health, will repay up to $35,000 on student loans for doctors and nurses they employ.

If dedicating a long period of time to volunteer work is not an option but you are still overwhelmed with student loan debt, a Federal Student Loan Consolidation through FaithWorks Financial may provide you with the student loan relief you are in need of. Call us today at 877-232-5109 or fill out the short form to the right for a FREE consultation to help you find your best option.