Biblical and practical resources to help Christian families manage money wisely. Learn essential money skills, budgeting techniques, credit score basics, student loan guidance, saving strategies, and financial habits that strengthen long-term stability. This category equips Christians to steward their finances with intention and confidence.
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.
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While you probably strive to give all throughout the year, the Christmas season provides a wonderful opportunity to expand on your financial giving. By planning ahead, you can enjoy the blessing of giving even more this Christmas season by helping others in need.
There are many ways in which you can help others through your financial giving this Christmas season. Here are a few opportunities for you to give more this Christmas.
Last year, we spoke with our church and asked if they knew of a family in need. They were able to facilitate our “adopting” a family anonymously so that we did not need to know who it was that was having difficulties, and they did not need to know who was helping them. It was a wonderful experience to be able to help someone out expecting not even a thank you in return.
Your church or a local community service may be organizing programs to help struggling families enjoy a meal this Christmas. Taking part in a food drive is an excellent way to help others even if you are in the midst of a Christian debt consolidation program. Even if you cannot afford to pick up some extra food at the grocery store and cannot find any food to offer from your own cabinets, offering your time at the food drive is often the most helpful thing you can do.
You can also consider giving financially to your favorite charity, missionaries, orphanage, homeless shelter or other worthy cause. In today’s difficult economic times, there are multitudes of people in need. Your giving can make a marked difference in the lives of others and have a positive effect on their future.
Just can’t figure out what to get for that one family member? Consider supporting a cause that is dear to them. This is a great way to truly embody the spirit of Christmas giving, and they will probably appreciate that you are supporting something that is meaningful to them.
By having financial goals, you can maintain a more Biblical financial perspective. Your future objectives may include saving money for your children’s higher education, investing in a new home, buying a new car, expanding your business, etc. Maintaining your budget through the Christmas season can be difficult, especially considering all of the media hype and the ad-frenzy that is poured upon us. Maintaining your perspective in spite of the hype is a part of a Christian’s financial responsibility.
Christmas is a time that we should view as an opportunity to extend our giving above and beyond our normal tithe so that we can share the Christmas spirit with others. As the year comes to a close, it’s always a good idea to incorporate giving into your Christian budget in preparation for Christmas.
Our last article launched our Retirement Planning Basics series by covering the Traditional IRA. In todays article, we will discuss another hugely popular retirement vehicle, the 401(k).
Whether you are finishing up a Christian debt settlement program, just starting your career as a recent college graduate with a new job or you are preparing for a Christian retirement, planning for your financial future is wise. First Peter 1:3 tells us that all the power we need to navigate our life — including our financial future — comes through the hope we have through Christ Jesus.
Part of exercising that power is educating yourself about retirement plans and packages before you make financial decisions. This article discusses some basics about 401(k) savings plans.
If numbers are any indication, this plan is one of the most popular retirement savings vehicles today. There are about 50 million individual 401(k) accounts in the United States.
Originally, 401(k) designers envisioned a tax-deferment vehicle purely as a tax break that pushed tax liability to a future date when earnings were used. Today, it is part of a retirement income stream that includes personal savings, pension and Social Security disbursements.
A 401(k) plan is an employer-sponsored plan where workers choose to contribute through payroll deductions. The maximum annual contribution for 2013 is $17,500. Plans are portable, you can rollover the account into a new account without penalties if you change jobs.
There are three distinct benefits of using a 401(k) to save for retirement.
1. Convenience of automatic deposits.
2. Employers match a percentage of deposits — typically 3% to 6% of annual salary.
3. Tax is deferred until you withdraw the money after age 59½ or for a qualified hardship.
As with any retirement plan, there are some drawbacks as well. Just like with the Traditional IRA, if you withdraw money early, you’ll pay a 10% penalty-tax along with tax on earnings. Also, some employers don’t allow early withdrawal except for resignation or termination.
People planning for a Christian retirement need to know how their investments are managed.
Employers typically contract with financial management companies to pool the funds into a basket of diverse stocks, bonds and mutual funds. Employees choose where to invest contributions from a list provided by their employer. Investments earn dividends, but there are many fees associated with a 401(k). Most fees are low — 1% to 5%; however some unscrupulous fund managers charge fees ranging from 15% to 50%. Some employers even negotiate a commission based on employee participation.
Even a small fee can devour your savings. Take this example. Let’s assume John is 40-years old, has a 401(k) balance of $10,000 today, and plans to contribute $5,000 annually until he is 65. With an 8% assumed return on investment, and a 3% fee structure, John will have $272,499 when he is ready to retire. If the fee was only 1.5%, his nest egg would be $342,715 — a difference of $70, 216.
As with any investment, do your research before selecting individual stocks or bonds. Ask about fees and rates. Calculate your tolerance based on your age, job stability and financial situation. Working with a Christian financial counselor can help your assess your finances and establish a solid saving plan for your future.
Whether you are nearing the end of a Christian debt management program or simply wanting to begin planning for your retirement, one of the first things that you will likely be investigating is the Traditional IRA. Today we’re going to discuss the basics of the Traditional IRA and explore why it should be at the top of your list of methods for funding your retirement.
Let’s first break down the abbreviation- an IRA is an Individual Retirement Account.
There are several kinds of IRAs, such as a Roth IRA, a Simple IRA, and a SEP IRA. For the purpose of this article though, we are simply going to focus on the Traditional IRA.
For a very simple explanation, an IRA is an investment account that you can utilize to save funds for your retirement with a few tax benefits along the way.
The IRA provides you with an account where you can deposit pretax money, currently up to $5,000 annually or $6,000 annually if you are over age 50. The increase is because you may need to save more as you get closer to your retirement. The money in that account can then be used to purchase investments such as stocks bonds etc. This is considered to be tax-deferred, because you will not pay your taxes on the money until you pull it out of the account.
That tax deferment is the primary benefit of the IRA. Let’s suppose you are a single filer and earn $40,000 per year; by todays standards you would fall into the 25% tax bracket. To pay taxes on $5000 (the max annual IRA contribution under 50) at this point in time would cost you 25% of that income, or $1250. The expectation is that when you retire, your income is going to be reduced pushing you into a lower tax bracket. Let’s say that your income has dropped from $40,000 per year to $30,000 per year; you are now in a 15% tax bracket and instead of paying $1250 for that $5000, it would instead be $750. If you are using the IRA to its full capacity and making the maximum annual contribution year after year, this can add up to a very significant tax benefit.
While you are funding your IRA, the money is not just sitting there earning no interest. Within the IRA you are able to purchase investments. Assuming your investments are wise you are likely to receive a return on your investments, and again the income earned on the investments are tax-deferred. Over the years of making your annual contributions and in turn earning a profits from investing those funds, you are not yet paying the taxes on the income.
The difference in the tax rate from when you are in the height of your career compared to being newly retired with a reduced income can cause a major flux in your income tax bracket. As that IRA account grows and the profits from your investments accumulate over the course of say 20 years, the tax savings brought about by being charged at a different tax rate can be very substantial.
Based on everything that we’ve shared with you so far it seems very clear that this is a smart thing to do when you are saving for your retirement and, generally, it is! However, there is one very important factor to consider before starting with this type of retirement savings- the early withdrawal penalty.
As is mentioned in its name, the IRA is a retirement account. As such, you cannot access the funds without penalty until age 59 ½. If you do withdraw from the account prior to this point you are going to not only pay the taxes on the amount that you withdraw but also incur a penalty, currently 10% of what is withdrawn. Every situation would certainly be unique, but generally the benefits of an IRA will be lost if the funds must be withdrawn at a penalty.
An IRA is a great investment tool that will provide a vehicle in which you can conduct your other investments. If you have created your emergency fund, paid off your credit card debt (on your own or through our Christian debt relief program) and are ready to begin planning for your retirement, this is one avenue you will definitely want to explore.
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?
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.
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.
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.”
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.
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.
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.
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.
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.
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.”
There is no denying that people spend beyond their means for a lot of reasons. Sometimes it can be unintentional- unexpected medical expenses a reduction in income can lead to speaking beyond your means by no inherent fault of your own. Looking beyond those unintentional reasons though, one of the most common and detrimental reasons both financially and spiritually is when an individual is a prideful spender.
Pride is a sin and can really put the brakes on your spiritual life. Nowhere can pride be more easily seen than in our financial lives. Sometimes it is hard for us to see our prideful spending though. Ask yourself the following questions to determine if you have an issue with prideful spending.
This is the most common type of prideful spending, the “keeping up with the Joneses” mentality. Many people in our society define themselves by their material possessions. Because of this, when we see someone else with something nicer we begin to judge ourself as being inferior to that person.
We can combat this by taking to heart what Hebrews 13:5 shows us about where our true worth is, and it is not in our bank account. “Keep your lives free from the love of money and be content with what you have, because God has said, Never will I leave you; never will I forsake you.” This verse perfectly contradicts the modern ideal that the more you have the better you are. If you begin a cycle of buying everything you see someone else have you will soon self-destruct financially. Claim your confidence in Christ, not in possessions.
This is prideful spending very well disguised as charity. As with many things in life, we need to take a look at our motives. If you only participate in charitable giving when you are sure to be seen, or you always make sure that people know that you were the one bestowing a gift, your motives and your heart are in entirely the wrong place.
Christianity is a generous religion. Luke 6:38 tells us, “Give, and it will be given to you. A good measure, pressed down, shaken together and running over, will be poured into your lap. For with the measure you use, it will be measured to you.”. However, if your motives are wrong, even a good action can become sinful. In fact Jesus rebuked the Pharisees in Matthew 6:1 for doing exactly that, “Be careful not to practice your righteousness in front of others to be seen by them. If you do, you will have no reward from your Father in heaven.”
This can be resolved quite simply, by making a priority of giving anonymously. Do something for someone expecting nothing in return, not even a “thank you”. Do this by not even letting them know it was you who did the favor. In time you will grow spiritually when you humbly give of your resources.
If you sense that the sin of pride could be what is throwing off your goal of becoming debt free, ask forgiveness and seek to spend and give in a way that honors Christ and not yourself. If your finances have gotten out of control as a result of prideful spending, or through no fault of your own, call 877-232-5109 to speak with one of our Christian debt relief specialists today.
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.
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.
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 AgentBuying 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.
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:
Unrealistic expectations set yourself up for disappointment and failure. Be reasonable with your goals and work hard to achieve them.
Image credit cnn.com
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.
“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.
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.
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.
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.
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.
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.
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.
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.
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