Free financial education resources for homeschool families, churches and parents raising good stewards. Explore lessons, activities, and tools to teach children and teens about saving, stewardship, generosity, and responsible money habits—all from a Christian perspective. Build a strong financial foundation for the whole family.
I’ve never met a parent who dreams her child will grow up to be lazy, irresponsible and greedy. That would be crazy!
Of course, moms and dads want their children to become productive, responsible and generous adults. The problem is, those traits don’t just magically appear over time. Financial wisdom is something you learn, not something you’re born with.
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Funerals are certainly not a favorite topic for most people, but it is a necessary topic that should receive more adequate attention and planning. Funerals are an eminent part of our life, and although funerals are super charged with emotion, there is also a practical side to this difficult subject.
To avoid the topic of funeral planning can be very costly for families. According to the Federal Trade Commission there are over fifteen different costs involved in an average funeral. Each of these elements carries their own price tag. The emotion associated with the death of a loved one will not make the costs go away. It will still be expensive no matter how upset you and your family are.
Planning ahead for personal and family funeral costs is practical because you can conduct this most important of tasks in a non-emotional environment. You will be better able to focus on what needs to be addressed and you will be in a better state of mind to make choices. Even if it does feel awkward or difficult to discuss such things with your family it will be far easier to discuss it now than it would be hours after a loved one’s death.
Often times when families choose to establish their funeral plans a head of time they will get the opportunity to purchase necessary items at the current market value. This means that if you purchase a casket now and it is not needed for another twenty years, you will not pay the inflated price in the future. Today’s prices will be far cheaper than they will be when these items and services will actually be used for yourself or a family member. Planning ahead also gives you the option of installment payments. Having the option to pay for your funeral costs over a long period of time makes this large expense much more easily managed.
Your family may feel resistant at first to this topic. Take the time to explain to them that you are actually doing this as a kindness to them, not to make them uncomfortable. Ask each one of them if they would rather make these decsions right now, or the day of your death. When people think of this task in that light it is much easier to see the practicality and kindness of planning ahead.
Planning ahead for the funeral costs of an adult is one thing, but many people feel an extreme taboo surrounding any type of funeral planning for children. If you have small children and cannot emotionally handle making these types of decisions concerning them, you should consider setting up a life insurance policy for your children which can double as a college savings plan. These plans will ensure that there is money set aside for funeral costs in the event of your child’s death and the money can convert to cash value when they reach college age. This will at least offer some financial buffer so you would not have to worry about how to pay for a funeral while also facing the tragedy of losing a child.
Throughout the recent recession we have heard the term downsizing quite a bit. Downsizing is the act of moving to a new home or apartment in order to better your financial situation. Many individuals have found bigger more comfortable houses for less money because they tweaked their idea of the acceptable home. Most people are very emotionally attached to their homes, and moving can be an emotional event which is why it is important to carefully consider this drastic financial step.
There actually are not many situations in which downsizing is the only option.
If you are facing a possible foreclosure in which you have exhausted all means of reversing the situation, then selling or short selling your home may be your only option. This may seem like a bleak option at first, but it is a far better option than outright foreclosure.
Many people find that once they are out from under a burdensome mortgage they are very relieved and can focus better on work, family, God and rebuilding their finances. Selling your home to avoid a foreclosure is not the end of the world; it could be the beginning of a much better financial life for you.
Beyond pending foreclosure, another reason to downsize might be because the payments on the home just take out too big a chunk of the budget. There is no money for savings, giving, investing or other actions that could improve your financial situation.
When the house has become a big money pit, downsizing could be an option that would give you more wiggle room financially. You should only consider this huge step, though, if you are committed to using the extra money to improving your financial health or using it to pay off other debts.
If there is no plan in place for the money you will be no better off than you were to start with.
Selling a house, getting rid of a mortgage entirely and switching to a rental home is another form of downsizing that many people find financially liberating. There are a lot of hidden costs associated with owning a home. You are responsible for all maintenance, home owner’s insurance and property taxes.
When you choose to rent, all of those costs simply disappear as well as the stress of dealing with repairs. Renting can be a great permanent choice, or it can be a great temporary choice to help you while you are paying off other debts or working through a Christian debt settlement program.
Some families have discovered that when they reevaluate their standards of housing, they can actually get a bigger home for less money. The closed minded ideas of having a home only in a certain neighborhood or only of a certain appearance can really hinder your efforts to find affordable housing.
Housing farther out in rural areas is almost always cheaper. Think outside the box and you might really like what you find.
It may be well worth foregoing certain luxuries to be more financially comfortable. This is a temporary dwelling, after all!
If you have a spouse or family you must consider that they will all be very greatly impacted by a decision to move. Although you may understand all of the financial reasons that would make downsizing a great option, you must understand that the other members of your family may not have that same knowledge.
A move is a huge step that should not be done suddenly if possible. It should be discussed in depth with your entire family. When huge changes are sprung on people suddenly it can sometimes result in resentment. You do not want to sacrifice your family relationships for what looks like a good financial move. Take time to discuss this with your family and make an effort to understand everyone’s emotions on the topic.
Want to avoid the stress of the move? Consider the option of renting a room of your home. That mother-in-law suite could be the exact solution to help you navigate debt troubles.
If that isn’t possible or doesn’t quite cut it, our Christian debt settlement program can help you resolve your credit card debts with a much lower payment. Complete the form on the right hand side to find out how what a debt settlement program would look like for you.
It would be ideal if the life stages involved in raising children and caring for aging parents occurred at separate times. However, many parents of young children find themselves caring for their own parents.
According to the Pew Research Center, 47% of adults in their 40s and 50s are both rearing children and caring for aging families. These members of the “sandwich generation” are simply following the words of 1 Timothy 5:4 which reminds us, “But if a widow has children or grandchildren, these should learn first of all to put their religion into practice by caring for their own family and so repaying parents and grandparents, for this is please to God.”.
Anyone who has been in this situation knows that juggling the priorities of multiple generations and maintaining financial balance can be quite difficult.
Communication is the key to navigating this could-be stressful situation.
Loss of independence and financial matters are both sensitive topics. In the early stages of caring for a aging parent, ask them which financial matters they feel capable of taking care of themselves and which ones they feel comfortable handing over. Specifically discuss who will pay bills, who will make bank deposit and withdrawals, and who will work with insurance companies.
Lean toward helping them maintain as much independence in their own finances as possible, but keep an eye open for signs they may need more assistance. Even if they don’t tell you something is a struggle, it might show through in time.
Aside from the financial aspects, multiple generations living within the same home raises questions about raising children. Talk with your parents about your approach to child rearing, including schedules, who will provide discipline and which discipline methods you use. Being sure everyone in on the same page in the beginning will save frustrations and misunderstanding later.
The age of your children will largely guide your discussion about caring for their grandparents. However, even young children can understand the message of Acts 20:35; “It is more blessed to give than to receive” and this is an excellent opportunity to teach compassion and empathy.
Children can play a helpful role in helping a grandparent adapt to a new living situation.
The good news is, multigenerational households offer an excellent opportunity for children to form strong bonds with grandparents. Encourage children to listen to stories and ask questions about their grandparent’s younger days. The older generation will love reminiscing, and the younger generation will cherish the memories they make.
It is important to organize financial information as early in the process of caring for aging parents as possible. The will prevent scrabbling for the information, or being denied access, when it is needed. Round up and organize…
Caring for aging parents can take many forms. The arrangement you select will depend on the older generation’s health, as well as the financial impact.
Caring for aging family members while they continue to live in their own home, known as “aging in place”, allows for the highest level of continued independence. However, this plan requires the financial resources to maintain two households. Though it can be difficult, it may be possible if the older generation owns their home, has no debt and significant retirement savings.
Nursing facilities offer the lowest level of independence and can come at a high cost. However, they provide higher levels of skilled care than a family member can provide. Depending on income, there may be financial assistance available to mitigate the cost.
Merging households offers a compromise between the two extremes, and can be a cost-effective solution. Don’t assume that your parents need to move into your home. If their home is already paid for, while yours has a mortgage, it may be better for your family to move in with them.
Whichever solution you choose today, don’t assume it will always be the right one. As health conditions and finances change, it may be necessary to make another move.
In addition to the financial commitments, caring for aging parents creates new demands on time and emotions. In order for children to continue to thrive and grow, you’ll need to take special care that they get one-on-one time with Mom and Dad.
Plan ahead for special outings and private quite time with children on a regular basis. When children know that they’ll soon have time alone time with parents, they are better able to handle the day-to-day distractions. Also, check in with children continually to find out how they are feeling about the situation and be sure they know they can come to you at any time to talk, ask questions of just for a hug.
Though caring for an aging parent forces the focus to the here and now, it is still important to plan for the future. Trim the budget, to the bare necessities if necessary, so that you do not dip into emergency accounts or your own retirement savings.
In the best-case scenario, continue to contribute to education savings for your children and to your own retirement accounts.
When caring for an aging parent, the road can be long and difficult, but you do not have to walk it alone. Engage siblings and other family members in honest conversations and develop a plan for managing both the day-to-day responsibilities and the financial obligations together. Also, contact your county’s Office On Aging to find out what resources are available in your area.
Caring for aging parents, while also raising your own family, can be a difficult journey, emotionally, practically and finically. However, it is a responsibility with it’s own rewards.
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