Riches and the Christian

Wealth is something Christians in the West should certainly think about because, by any objective standard, we are all wealthy. We have at our fingertips more than the great kings of old could have dreamed of. Sure, some of us have less than others, but even those who are relatively poor in our nation are wealthy by biblical standards, so when we read passages in Scripture on wealth, we should read these with our ears pricked up.

Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. Command them to do good, to be rich in good deeds, and to be generous and willing to share. In this way, they will lay up treasure for themselves as a firm foundation for the coming age, so that they may take hold of the life that is truly life.

I Timothy 6:17-19

One of the great dangers we face is demonizing wealth. This has been a common course in church history. We still hear it today from many Christians. Wealth corrupts and turns hearts from Christ. Thus, from the pulpit, we will often hear of the dangers of wealth and the importance of giving it away – especially to the church! Of course, it is true that wealth can corrupt our hearts. Moses warned the Israelites of this truth in Deuteronomy. Moses was worried that when Israel was settled in the Promised Land that they would become complacent.

Yet for all that, many saints have been rich. Abraham the father of faith was a very wealthy man. Here in writing to Timothy, Paul urges his son in the faith to charge the wealthy not to put their hope in wealth but God. At the same time, he avoids associating sin with the wealth itself. Instead, he reminds Timothy that it is God who richly provides everything for our enjoyment. Wealth is a blessing from God, and something we can enjoy without guilt. Sure it can be turned into a curse when we make it our hope, but like any good thing that comes from God, it should direct our hearts to God, and then to others in love and generosity. If God has blessed you with wealth, and if you are reading this from a phone in a home in a Western country, he has, then thank God for your wealth. Enjoy it, and bless others with it by sharing the blessings you have received.

This generosity lays up a firm foundation for the coming age. By giving and sharing we take hold of what is truly life. Just as Christ by giving up his riches and losing his life provided life, we too by giving ourselves and our wealth reflect Christ and reflect the paradoxical truth of his universe that giving of self is the only way we can lay hold of life.

Teaching Children About Money

In the last few years, my wife and I have invested small amounts of money in peer to peer lending. It offers far better interest rates than regular bank savings accounts. What an eye-opening experience! Harmoney, one of the companies we have loaned money through gives quite a lot of detail about potential loans. These details help lenders decide whether they want to loan to a particular person.

One that stuck out to me was a young woman who wanted to borrow thousands of dollars to go on holiday with her family. Apparently, the family had been planning a get-together for some time. Despite her good income, and the fact that she was living at home with parents, she had not been able to save for the holiday, and was asking to borrow the money instead at the exorbitant rate of 40%.

We choose only to lend to people who meet a number of strict criteria, so needless to say, this woman received nothing from us. However, it did get me thinking about the importance of passing on good financial sense to my children. How can parents help their children avoid the many pitfalls in managing money?

A great introduction to this is in the book Raising Financially Confident Kids by Mary Hunt. For me, the best part of the book was the salary structure she introduced to her family. When her children reached a certain age, they were given a monthly salary. This salary was designed to cover some of the items she and her husband used to buy for their children. Each year, the salary was raised. The raise would be commensurate with the child’s ability and the new responsibilities he would have in the new year.

There were a few simple non-negotiables. For instance, absolutely no loans. Even if the child had the money at home but not with them. 10% of the salary had to be put into long-term savings and 10% was to be given away. Purchases had to fit with family values. Aside from these few rules, Mary took a largely hands-off approach, and let her children make decisions and reap the consequences.

One disadvantage of the book was that there was no specific plan of attack for what a child would have to use their salary for each year. So this is something readers have to work out for themselves. For those of you interested here is a model first-year salary plan we have come up with for our eldest.

First Year Salary Plan 2020

Goals

The goal of this plan is to assist and teach Grace to grow gradually into an effective money manager who is not controlled by money, but rather uses money to provide for her needs and use it generously for God’s kingdom.

Commencement Date

The commencement date for this plan is January 2020

Salary

The monthly salary will be $35 per month. This will be reviewed annually, with the next review when Grace turns 11 in 2021.

Mandatory Disbursement

1. Giving: Every month Grace will take 10% of her salary and place this in her giving jar. When this jar reaches a total of $20, she will decide where or who to give the money to with guidance from Mum and Dad.

2. Long Term Savings: Every month, Grace will take 10% of her salary and place in her long-term savings jar. The savings will accrue throughout the year, and once per year be placed into the bank of Dad where she will receive a generous rate of interest.

Responsibility List

In 2020, Grace will be responsible for paying for the following things:-

Clothing

  • Footwear
  • Socks
  • Underwear
  • Hats
  • Hair ties

Presents

  • Birthday parties
  • Family presents

Entertainment

  • Non-family entertainment / treats

This list will be reviewed annually (or sooner if necessary) and added to.

Rules

While Mum and Dad will retain a hands-off attitude regarding spending choices, there will be a few rules that you must abide by.

  1. You must abide by the mandatory disbursements listed above
  2. You may not buy for yourself or anyone in the family anything that is against our family values for children. These items include, but are not limited to:-
    • Mobile phones
    • Other electronic devices
    • Immodest clothing
  3. You may never ask for an advance on your salary, nor are you allowed to borrow money. If you do not have your money with you, you will not be able to buy something.
  4. You must keep a written spending record of everything you spend money on.
Infractions

Failure to complete your family responsibilities (jobs), failure to abide by the rules for your salary, or disobedience and disrespect may lead to fines. Fines must be paid by the due date or reduction in salary may occur.

Graduation Day

Grace will graduate from her salary 3 months after she has completed her schooling.

Signatures

Mum and Dad: _________________________

Child: _____________________

Date: ___________________