Tuesday, May 16, 2023

Personal finance and the church

Many economists are predicting that we are moving towards another recession. A typical 30-year fixed rate mortgage now carries about a 7% interest rate. Existing home sales have fallen for the past 12 months, and the inventory of existing homes have increased to about a 2.9 monthly supply. The Fed keeps tightening the money supply, and the US economy is expected to expand less than 1 percent in 2023. Predictions for 2024 look more favorable suggesting that the financial challenges many Americans will face in 2023 will be of short duration. Certainly, no one expects to see a repeat of 2008. Still, many are going to struggle in the coming months, especially those will large amounts of debt. How can the church minister to those people?

God is interested in every aspect of our lives, and that includes the financial areas. The Bible speaks a great deal about money and how it should be managed. Despite this, little is said from many pulpits about personal finance. This gives people the impression that God is not interested in their finances or that it is not a part in our growing as Christian disciples.

I am convinced that every church should regularly offer a course on personal finance as part of its discipleship training. Such a course should be offered at least once a year, perhaps in a small group setting. Some people are very private about their personal finances and would not be comfortable sharing in a large setting, but in a small group many would be more willing to share with others who are dealing with financial challenges in their own lives.

Financial Peace University (FPU) is the best program I have discovered for such training. Dave Ramsey has built this program and defined it over the years. It has been offered in countless numbers of churches, schools and other settings, and have proven instrumental in helping people get out of debt and becoming financially healthy. I personally followed the teachings of FPU and was able to not only get out of debt but also learned how to better manage my finances.

Every Sunday pastors look out over their congregations and see many who are struggling financially. Some struggle to make it from one paycheck to the next. The loss of one paycheck due to illness or an accident would financially cripple them. They know they should tithe, but to do so would mean they could not pay their rent that month. Despite the guilt they feel, they also feel a responsibility to ensure their family has a roof over their heads. Some years their children may not go to church camp because they don't have the money, and their pride won't let them ask the church to help. Behind the smiling faces on Sunday there is fear, anger, and the pain of countless fights in the home over finances. FPU could provide them the tools they need to begin the road to financial security and freedom.

FPU could also be used as a powerful outreach tool into your community. Throughout every community there are countless people living just as I described above. One major study found that arguments about money are the top predictor for divorce. Offering FPU to the community along with the church can not only teach people sound money management principles but also introduce your church to them as one that is concerned about their well-being. FPU is based upon biblical principles so they will be exposed to such teachings through the 9-session program.

In closing, it is no secret that many clergy struggle financially as well. Many do not want their congregations know about their struggle, but it creates problems in clergy households as well. I would encourage such ministers to check out Ramsey's excellent book, Total Money Makeover. It was reading that book and listening to him on podcasts that helped me learn the principles he teaches about getting out of debt and becoming financially secure. The same principles found in the book are those taught in FPU. I should also say that I am not an employee of Ramsey nor a spokesperson for him or for FPU. I simply believe that this is an excellent way to serve the members of your church and reach out into your community. 

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