Category: Budgeting

Stewarding Well: Exercising Self-Control in Spending and Giving

The final fruit of the Spirit is self-control. When we hear that term, our minds often go straight to resisting temptation — avoiding that extra dessert, holding our tongue in a heated moment, or passing up an impulse purchase.

But self-control runs much deeper than momentary restraint. It’s about aligning our actions with godly wisdom and long-term values. In the financial realm, self-control not only guards against overspending but also ensures our generosity is Spirit-led rather than emotionally driven.

It might surprise you that even our giving requires self-control. While the world often celebrates extravagant generosity, the Bible reminds us that not all giving honors God. Some people find themselves in financial trouble, not because they’ve overspent on themselves, but because they’ve given beyond their means — motivated by guilt, pride, or the desire for approval.

True self-control helps us navigate both sides of the financial equation: when to say “no” to unnecessary spending and when to give thoughtfully, as the Holy Spirit leads.

The Dangers of Unchecked Spending and Impulsive Giving

The Bible is filled with warnings about the consequences of poor financial management:

“The rich rule over the poor, and the borrower is slave to the lender.”
Proverbs 22:7

“He who loves pleasure will be a poor man; he who loves wine and oil will not be rich.”
Proverbs 21:17

Whether it’s overspending on pleasures or giving to impress others, a lack of self-control leads to debt, stress, and missed opportunities to use our resources wisely.

Jesus cautioned against performing acts of charity for the wrong reasons:
“Take heed that you do not do your charitable deeds before men, to be seen by them. Otherwise, you have no reward from your Father in heaven.”
Matthew 6:1

Generosity should never be a tool to seek validation or soothe a guilty conscience. Spirit-led giving, balanced with financial stewardship, honors God and builds peace in our lives.

Cultivating Financial Self-Control

So how do we grow in self-control? It starts with intentional, Spirit-led living. Self-control is not self-generated discipline alone; it’s a fruit of the Spirit cultivated through prayer, wisdom, and surrender to God’s guidance.

Paul highlights this quality as essential for believers:
“For the grace of God… teaches us to say ‘No’ to ungodliness and worldly passions, and to live self-controlled, upright and godly lives in this present age.”
Titus 2:11–12

And Peter reminds us to actively pursue it:
“For this very reason, make every effort to add to your faith goodness; and to goodness, knowledge; and to knowledge, self-control…”
2 Peter 1:5–6

Here are some practical, biblical steps to develop financial self-control:

  1. Ask God to transform your perspective on money.
    “I can do all things through Christ who strengthens me.” (Philippians 4:13)
  2. Seek wisdom to establish a spending and giving plan.
    “If any of you lacks wisdom, you should ask God, who gives generously to all without finding fault.” (James 1:5)
  3. Let the Holy Spirit direct your charitable giving beyond your tithe.
    “You are to receive the offering for me from everyone whose heart prompts them to give.” (Exodus 25:2)
  4. Pause before making unplanned financial decisions. Ask yourself:
    • Why do I want to spend or give this money?
      • Am I meeting a true need or reacting impulsively?
      • What adjustments will I need to make if I use this money now?
      • Is this Spirit-led or emotionally driven?

If the decision aligns with wisdom and biblical stewardship, adjust your budget accordingly, ensuring you’re not sacrificing long-term stability for a temporary impulse.

The Reward of Self-Control

As you consistently practice self-control in both spending and giving, it will become easier and more natural. The reward isn’t deprivation — it’s peace of mind, financial freedom, and the joy of being a faithful steward of God’s resources.

Self-control guards us against debt, stress, and the temptation to find our identity in material things or the approval of others. And it positions us to give generously in ways that truly honor God.

May we ask the Lord daily to help us exercise self-control, trusting Him to meet our needs and lead us in wise, Spirit-directed generosity.

Discussion Questions:

  1. In what areas of your finances do you find it hardest to practice self-control? How can you invite God into those decisions?
  2. Have you ever struggled with giving impulsively or for the wrong reasons? How can you better discern when and how to give?
  3. What practical steps can you take this week to grow in self-control regarding your spending, saving, or giving habits?
  4. Think of a time when practicing financial self-control brought you peace or helped someone else. How did it impact your relationship with God or others?
  5. How might growing in self-control influence other areas of your life, such as your relationships, time management, or health habits?

The Peace of God in Our Finances: Letting Go of Financial Anxiety

The third fruit of the Spirit is peace—a deep sense of inner contentment and calm. Peace of mind stands in stark contrast to worry or stress. We experience peace when we feel safe and secure. However, in today’s world, feelings of peace can be rare and short-lived. We find ourselves worrying about our family’s safety and health, job security, political turmoil, and, of course, whether we have enough money to meet our obligations.

Money is consistently one of the top causes of stress. In fact, a recent study revealed that 70% of Americans report feeling stressed about their finances, and 90% say that thinking about money causes them anxiety. But God does not want us to live in fear or anxiety about money. He desires for us to have peace, no matter our financial situation.

True Peace Comes from God

The first step in experiencing peace is recognizing that only God can truly supply all of our needs. As Philippians 4:19 reminds us:
“And my God will meet all your needs according to the riches of his glory in Christ Jesus.”

When we bring our needs before God in prayer, He listens and responds in a way that aligns with what’s best for us. Philippians 4:6-7 encourages us:
“Do not be anxious about anything, but in every situation, by prayer and petition, with thanksgiving, present your requests to God. And the peace of God, which transcends all understanding, will guard your hearts and your minds in Christ Jesus.”

As we bring our needs to God and trust Him to guide us, we begin to experience the true sense of peace that comes from knowing Christ as our Savior and recognizing God as our ultimate provider.

Money Cannot Give Us Peace

It’s also crucial to acknowledge that no amount of money can provide lasting peace. A 2024 study found that the average American household believes they need an annual income of $186,000 to feel financially secure. However, the most recent Census Bureau data shows that the median household income is $78,538, with only 10% of households earning $186,000 or more. This means that the vast majority of Americans feel insecure about their financial situation. It’s no wonder that many experience stress when they think about money.

Even those whose income greatly exceeds $186,000 often admit feeling financially insecure and wishing for “just a little more.” King Solomon understood this idea when he wrote in Ecclesiastes 5:10:
“Whoever loves money never has enough; whoever loves wealth is never satisfied with their income. This too is meaningless.”

True peace comes not from accumulating wealth but from trusting in God, who provides for our needs.

Money Is Fleeting

Even if you have accumulated enough money to feel financially comfortable, it’s important to remember that wealth can be lost in an instant. A stock market crash or economic downturn can wipe out fortunes overnight. Political unrest or war can destroy the wealth of entire nations. Many people have lost their wealth due to bad investments or unscrupulous financial advisors.

King Solomon described this in Proverbs 23:4-5:
“Do not wear yourself out to get rich; do not trust your own cleverness. Cast but a glance at riches, and they are gone, for they will surely sprout wings and fly off into the sky like an eagle.”

Paul also warned against putting our hope in wealth. He wrote to Timothy:
“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.” (1 Timothy 6:17)

We can only feel secure and at peace with our finances when we depend on the Lord to provide for our needs. Isaiah 26:3 assures us:
“You will keep him in perfect peace, whose mind is stayed on You, because he trusts in You.”

A Reflective Question for Your Heart

As you consider your relationship with money, ask yourself: Do I place my peace and security in my financial situation, or am I trusting God to provide for my needs, no matter what my bank account looks like? Take a moment to reflect on whether your financial outlook aligns with God’s call to trust Him fully or if you’re still holding on to worry and insecurity. Let this be an opportunity to invite God’s peace into your financial journey.

Know Your Financial Statements—The Income Statement

As a business owner, understanding your financial statements is key to making informed decisions. In this post, we’re diving into the income statement—a crucial report that shows how well your business is performing over a specific period of time, whether it’s a month, a quarter, or a year. Simply put, the income statement tells you how much revenue you’ve earned, how much you’ve spent, and—ultimately—whether you’re turning a profit.

Revenue: The Starting Point

The income statement starts with revenue, also known as sales or income. This represents the money your business earns before any expenses are subtracted. For most businesses, revenue can be broken down into different categories, depending on the nature of the business.

Common sources of revenue include:

  • Sales (products or services)
  • Fees and commissions
  • Rental income and interest income
  • For nonprofits, revenue also includes donations

You might also break down your revenue into specific categories to gain deeper insights into how your business is performing in different areas. Here are a few examples of how businesses typically organize revenue:

  • In-store vs. online sales
  • Food vs. beverage sales (for restaurants)
  • Restaurant sales vs. catering sales
  • Sales by department (women’s, men’s, and children’s clothing)
  • Sales by location (if you have multiple stores)

Cost of Goods Sold (COGS): Direct Costs Tied to Sales

Next, we have the Cost of Goods Sold (COGS), which represents the direct costs associated with producing or acquiring the goods you sell. COGS is often separated from operating expenses because it directly impacts your revenue.

The formula for COGS is:

COGS = Beginning Inventory + Purchases – Ending Inventory

For manufacturers, this cost also includes direct labor (the wages paid to employees who produce the product) and the raw materials used to create the product.

Keep in mind, determining your COGS accurately requires precise inventory management. Regular inventory counts—whether manual or tracked through software—are essential. Also, fluctuations in purchase prices can affect your COGS, especially if inventory items were bought at different prices.

Operating Expenses: The Cost of Running Your Business

Now, let’s talk about operating expenses—the costs involved in running your business day-to-day. These expenses can be fixed or variable:

  • Fixed expenses stay the same every month, such as rent, salaries, insurance, and depreciation.
  • Variable expenses change from month to month, such as wages (if you’re paying hourly employees), utilities, credit card fees, and supplies.

Some expenses can fall into both categories. Take advertising for example: while contracted services like digital ads might be a fixed cost, other components—like ad spend or promotional events—could fluctuate based on your business decisions.

Other Expenses: Beyond Operations

In addition to operating expenses, businesses also incur other expenses that are not tied directly to day-to-day operations. These are typically separated on the income statement.

Here are a few examples of “other” expenses:

  • Loan payments: The principal portion of a loan repayment isn’t deductible, but the interest portion is. Only the interest is accounted for here.
  • Capital expenditures (CapEx): While expenses related to property and equipment are legitimate business costs, they aren’t shown directly on the income statement. Instead, these are capitalized on the balance sheet and then depreciated over time.
  • Taxes: These include property taxes, sales taxes, and income taxes, and are generally listed separately from operating expenses.

The Bottom Line: Profit

After all expenses have been deducted, what’s left is your net profit (or loss). This is the amount that ultimately accrues to the owner(s)—and what determines if your business is financially healthy.

Final Thoughts

The income statement isn’t just a tool for accountants; it’s an essential document for any business owner. Understanding each section allows you to make smarter decisions about pricing, expenses, and growth. By regularly reviewing your income statement, you’ll have a clear picture of where your business stands and what adjustments might be necessary to hit your goals.

Here’s a template to show you what an income statement looks like:

Company Name
2025
Revenue
  Less:  Cost of Goods Sold 
Gross Profit $             –  
Expenses:
  Administrative Expenses
  Advertising and marketing
  Credit card fees
  Depreciation
  Insurance
  Interest expense
  Licensing and registration
  Professional Services
  Professional Memberships
  Office Expense
  Owner’s Draw
  Rent
  Supplies
  Telephone & Utilities
  Travel Expenses
  Wages
Total Expenses $             –  
Net Profit (Loss) $             –  

If you’d like a changeable balance sheet template, feel free to email me at susan.ball5@aol.com, and I’ll send it your way!

Control Spending for Those You Love

Your health and relationships can be affected by your spending and budgeting habits. For the sake of those you love, you should prioritize managing your budget and living within your means. Buying your loved one the perfect gift on Valentine’s Day is a way to express love and provides a great sense of satisfaction unless you cannot afford the gift. 

When the credit card bill arrives, and you do not have the money in your checking account to pay it, it leads to debt and stress. If you have planned and set some money aside, you may be able to take the money out of your savings. Otherwise, you pay a portion of the bill and carry a balance forward.

If spending beyond your means is rare, you likely can recover with a few months of cutting back on “extras.”  However, if it is a regular occurrence, your balance will increase each month due to accumulated interest and new purchases.

In America, credit card balances currently top more than $1.13 trillion. Transunion estimates that the average American has credit card balances of $6,088, and Money magazine estimates the average non-mortgage debt at nearly $21,800. Many Americans are stressed about their finances. This stress is harming their health and their relationships.  

Financial stress leads to physical challenges, including anxiety, depression, high blood pressure, migraines, aches and pains, and difficulty sleeping. These physical ailments can make you irritable and have wild mood swings. All of which is hard on those you love. You and your spouse may fight about money. You may find yourself avoiding the company of others and become more and more withdrawn from social life. This is not a healthy way to live.

It is essential to recognize that debt is a form of bondage. The Bible says, “The rich rule over the poor, but the borrower is servant to the lender.”  Proverbs 22:7

The antidote to debt and stress is to take control of your finances. If you need a place to start, try working through the following suggestions to climb out of debt. Write them down and put them on the frig. Keep it in a prominent place in the house where you will see it and be reminded and encouraged each day. 

  • Immediately forego all unnecessary expenditures.
  • Work with your spouse to create a budget you can both live with.
  • Designate a sum of money to pay toward existing credit card balances.
  • Track your spending so you are aware of where your money is going.
  • Include some “fun” spending in your budget. If your budget is too strict, you will feel punished, and it will be challenging to stick with it.
  • When you need to make a significant purchase, research the item for the best price.
  • Employ the “24-hour rule” for non-essential purchases. If an item in the store tempts you, wait 24 hours. Ask yourself if you need the item and what you will give up in order to afford the item.

Here are some suggestions on how to plan to avoid temptations to spend beyond your budget.

  • Make a grocery shopping list and stick to it. Determine how much you can spend and don’t exceed your limit. Some people use cash and only take the budgeted amount to prevent overspending.
  • Pack lunches and snacks for work. Brew coffee, take it with you, or buy coffee pods and make coffee at work.
  • Invite friends over for home-cooked meals and game or movie nights rather than going to expensive restaurants and expensive activities.
  • Avoid surfing Internet shopping sites that might tempt you to buy things you do not need.
  • Tape television shows and fast forward through commercials to further avoid the enticement of slick advertisers.

This Valentine’s Day show your true love for your spouse and family members by committing to reduce your debt and lower your financial stress. Your physical health and relationships will improve if you do.

Are You Stressed about Your Finances?

Many Americans ended 2023 feeling more stressed about their finances than they did at the beginning of the year. Perhaps you are one of them.

According to a survey conducted in mid-December by Allianz Life Insurance Company, Americans cited concerns about rising interest rates, lingering inflation, and debt repayment such as student loans. They listed as their primary financial resolutions for 2024:

  • Creating an emergency fund
  • Paying down credit card debt
  • Increasing deposits to their retirement account

Many Americans reported receiving pay raises in 2023 that did not keep up with inflation. To combat the increased costs of living, one-fourth of all Americans took second jobs or sought other ways to bring in additional income. At the same time, one-third reported cutting their spending to keep financially afloat. For many people, cutting back on spending meant dining out less and doing more meal planning.

Tightening one’s budget and reducing dining out are appropriate responses to financial stress. Seeking additional sources of income is also an appropriate response. The resolutions listed above will not be an option for people in these situations. You can only create an emergency fund, pay down debt, and save for retirement if you can live below your means. If you are in the minority of Americans who feel you ended 2023 in a better financial situation than you began the year, you should prioritize these resolutions. However, if you feel stressed financially, you must take constructive steps to improve your situation.

Your first step should be to examine all your expenses to see what cuts you can make. Reduce all your costs as much as possible without compromising your family’s health and well-being.  Here are some ideas to consider:

  1. Cut gym memberships. Many gym memberships go unused. Even if you use your gym membership, you may want to take a break from it until your budget balances. 
  2. Examine subscriptions, including magazines, tv channels, streaming services, music subscriptions, and personal improvement programs. If they do not truly add value, permanently eliminate them. Otherwise, cut them off temporarily and re-evaluate when your finances improve.
  3. Reduce dining out. You can save significant money if you eat at home and pack lunches for school or work. Planning menus and shopping with a list are the best ways to discourage eating out for convenience. Many social media accounts walk you through plans and menus to help you organize. 
  4. Buy store brands rather than name brands. You may find that you prefer some store brands and stick with them.
  5. Put a moratorium on buying anything new unless it is essential. If you make a purchase, research the best deal and consider purchasing the item second-hand.
  6. Sell unneeded clothing and other items. Many apps allow you to dispose of unneeded items and get immediate cash.
  7. Eliminate unnecessary insurance coverages. Review your insurance policies to ensure you are not paying for coverages that no longer apply to your situation.
  8. Avoid paying others to do tasks that you can do yourself. Can you mow your lawn yourself? Can you drop off your garbage at a convenience site rather than paying for trash pickup? 
  9. Lower utilities bills. Reduce your electric bill by turning off lights in rooms you are not in and adjusting your thermostat so the heat or AC is not running as much. Cut your water bill by taking shorter showers and only running the dishwasher when it is full. Open curtains in the winter to warm up your space and close them in the summer to cool off your house.
  10. Reduce communication bills. Cell phones and the internet consume a significant portion of most families’ budgets. Examine your plans and determine if you are paying for more time and speed than you need. If you work from home and need higher service levels to do your job, ask your boss to cover some of those expenses.

Your second step is to find ways to increase your income. For many, this has meant taking on a second job or joining the gig economy. I know several people delivering groceries, meals, or products to make ends meet. Many opportunities are available through companies such as DoorDash, UberEats, Instacart, and Amazon Flex, allowing you to earn a bit of extra money in your free time.

Whatever steps you take to help put your family in a better financial position, remember that you need to create a budget, and everyone in your family needs to have input into developing your budget. Also, be sure to go to God with your problems. Ask God to help you make wise financial decisions to provide for your family. God cares for you and wants you to take care of your family. Jesus illustrated God’s care for you in the Sermon on the Mount. “Therefore, I say to you, do not worry about your life, what you will eat or what you will drink; nor about your body, what you will put on. Is not life more than food and the body more than clothing? Look at the birds of the air, for they neither sow nor reap nor gather into barns; yet your heavenly Father feeds them. Are you not of more value than they? Which of you by worrying can add one cubit to his stature?’ Matthew 6: 25 – 27 

If you have other suggestions for reducing expenses, please share them in the comment section.

Please read my other blog posts for more ways to manage your money and reduce stress. My book, Honoring God with Your Money, is another valuable resource to help you manage your money.

Honoring God with Your Money in 2024

The new year will arrive in two days. With a new year, comes a chance for new beginnings and fresh starts.  I encourage you to make a commitment in 2024 to follow the Lord’s leading in all that you do. Obeying the Lord in all things will result in spiritual growth, better mental and physical health, more joy, and less stress, including less financial stress.

Honoring God with Your Money

Plan now to reduce your financial stress in the coming year by honoring God with your money.  Here are some steps to help you.

  1. Acknowledge that all you have has been given to you by God. God gives you the ability to work and earn a living. ”And you shall remember the Lord your God, for it is He who gives you the power to get wealth.” Deuteronomy 8:18
  2. Tithe. God asks each of us to return ten percent of what we earn for the work of the church. God promises to bless those who are obedient to tithe. “‘Bring all the tithes into the storehouse, that there may be food in My house, and try Me now in this,’ says the Lord of hosts, ‘If I will not open for you the windows of heaven and pour out for you such blessing that there will not be room enough to receive it.'”  Malachi 3:10
  3. Live below your means. Living below your means will allow you to pay off existing debt and put some money aside for emergencies.
  4. Make a budget and do your best to stick to it.  Include your spouse and children.  Everyone needs to be committed to the budget, or you will not be able to maintain it. Set reasonable amounts of money for entertainment and recreation.
  5. Start saving, even if is only a small amount. Develop a regular habit of putting aside a little bit from each paycheck. Make it automatic by having your savings directly deposited before you get your paycheck.
  6. Designate some money to help out those less fortunate than you.  Don’t try to outgive others, but give within your means as led by the Lord. He who has a generous eye will be blessed, for he gives of his bread to the poor.” Proverbs 22:9
  7. Trust in the Lord.  Those who put their trust in money, jobs, or the government will be disappointed. Only God can meet all your needs.  “Trust in the Lord with all your heart, And lean not on your own understanding; In all your ways acknowledge Him, And He shall direct your paths.”  Proverbs 3: 5, 6
  8. Seek guidance from godly financial experts.  Completing my Bible study, Honoring God with Your Money, is a great way to start the year.  There are many other resources available from Crown Financial Ministries (crown.org) and Dave Ramsey (DaveRamsey.com).  Find tools that work for you and use them.

Reduce Stress By Planning Your Holiday Spending

Researchers estimate that 80% of consumers have started shopping for the holiday season. I shop for eight grandchildren, and I like to spread my spending over several months, so I am part of the 80%. Many people are shopping early to take advantage of promotions. Others are spreading out their spending to avoid hefty credit card balances in the coming year.

Economic forecasters predict that 95% of Americans will celebrate the holidays. The average consumer will spend $1,652 on gifts, food, decorations, clothing, and furnishings. This number is 14% more than last year, even though incomes increased by only about 5%.  

As parents and grandparents, we desire to make the holidays special for our children. We encourage them to make lists, and we try our best to fill their lists. But sometimes our budgets do not allow us to indulge our children as we would like. It’s easy to get caught up in the frenzy and spend more than we can afford. 

Before you overspend on Christmas purchases, take a hard look at your income and regular bills. Plan a time to sit down and calculate how much you can afford. Find a quiet space and clear your mind from the running to-do list constantly filling your head. Commit to not spending more than you can afford. The following ideas can help you to stay within your budget.

Prioritize. If you are a parent, buying gifts for your children should be first on your holiday shopping list. Beyond the children, you will want to purchase gifts for your spouse, parents, and spouse’s parents. Extended family, co-workers, and friends should be further down the list and may require you to cut if your budget does not allow them. 

Set Expectations. If you plan to spend less than usual this year, let your children know they may not find as many gifts under the tree. Be upfront with friends and colleagues with whom you will not be able to exchange gifts this year; they will appreciate your honesty and may be relieved to be purchasing fewer gifts themselves.

Ask for help. If your child has his heart set on a gift that does not fit your budget, ask the grandparents to chip in. They will likely be happy to contribute for the pleasure of knowing their grandchild is getting this special gift.

Start early. Research now for the best prices for the gifts you want to buy. Be alert for sales and promotions. Place online orders early enough not to have to pay for express shipping.

Cut back. Carefully consider all of your spending for your typical holiday celebration. Decide which purchases you can cut out without diminishing your celebration. Reuse gift bags and decorations rather than buying new ones. Design and send e-cards rather than spending money and postage on store-bought cards. Give some homemade gifts. Make most of your desserts and side dishes from scratch.

The spirit of Christmas is giving. As God gave His Son to redeem mankind, we give gifts to those we love. Remember that the amount of money you spend does not reflect your love for someone. Instead, it is the thoughtfulness of the gifts that demonstrates your love to your family members. It is more loving and thoughtful to stay within your budget on holiday spending than to go overboard and deal with financial stress in the new year.

For more information on reducing your financial stress, please read my other blogs on financial management and stewardship. My book Honoring God with Your Money is another excellent resource. You may also want to sign up for my free quarterly newsletter.

5 Steps to Prepare Your Child for Financial Success

Teaching financial responsibility falls into the lengthy job description of a parent. The topic of money intimidates many people. Parents feel at a loss about where to start. An excellent place to begin is with their allowance. You can then introduce the idea of saving for items they want to buy. As they age, begin to teach your kids how to balance a checkbook and explain basic financial information.


A recent study found that young adults are most stressed about paying off college debt and lack financial literacy. They are also concerned about their lack of investment knowledge or when to take a risk. These young people believe they will never achieve what their parents did, such as owning a home or the ability to retire at the average retirement age.

Financial education should be a regular part of family discussions. I have created a few beginning steps to help you encourage your child to feel more financially knowledgeable and understand how to manage money early on.

1. Open a bank account for them. You can use the bank statement to show your child the principle of interest and how their balance will grow by their deposits and interest. Set up a small regular deposit and demonstrate how even a tiny recurring deposit will grow to a much more significant amount over the next 5 – 10 years.
2. Ask your young child to select a toy or desired item, then research the price online. Calculate how long it will take to accumulate the money to buy the item if the child saves $1 a week, $5 a week, and $10 a week. This exercise can demonstrate savings accumulation as well as the value of money.
3. Have your teen start saving for their first car. Discuss the total costs of owning a car: car payments, gasoline, insurance, property taxes, maintenance, and repairs. Assist them in determining how much money they need to save each month to afford a car over the next few years.
4. If your child is a teen or young adult, use similar examples to demonstrate how saving a small amount of money each month beginning at age 22 will yield a large sum when they retire.
5. When making a significant purchase for your family, such as buying a new appliance or car, involve your child in the decision-making process. Share with your child what your budget is for the purchase. Let the child help research options within your budget. Discuss how you will pay for the purchase. Have you saved up the money needed? Will you use a “buy now, pay later” plan to purchase furniture or an appliance? Will you take out a loan? If you will borrow money to buy a car, share with your child how you decided whether to borrow from your bank or through dealer financing.


These 5 steps will encourage discussions that will help your child understand the value of money, the power of compound interest, and the cost of borrowing. Instill in your child the value of living beneath your means, long-term savings strategies, and the importance of minimizing debt except for mortgages and other investment opportunities.

For more ideas on how to manage your finance and train your children to use money wisely, my book Honoring God with Your Money is a great resource.

Falling Behind on Your Bills?

If you notice that it is harder to pay your bills lately, you are not alone. The prices of goods and services purchased by the average family have risen by more than $709 a month over the past two years, according to Moody’s Analytics. The higher cost of living stresses family budgets, especially since incomes have not kept up. The Census Bureau announced this week that inflation-adjusted wages fell in 2022 for the third year in a row. As prices are rising, your spending power is declining.

Are you falling behind on your bills? These tips will help you stretch your dollar.

As a financial adviser, now is a good time to re-evaluate your budget and change your discretionary spending before you end up in debt or fall deeper into debt. 

The Washington Post reported last month that the delinquency rate for credit card payments has risen to the highest rate in over a decade. Over the past few years, consumers’ credit card usage has increased significantly. Since 2019, more than 70 million new credit card accounts have been opened, and total credit card debt has topped $1 trillion for the first time.

If you need ideas on making your dollar stretch further, here are some tips to help you manage your money in these tough economic times. 

  • Be intentional with your spending and giving. Adjust your budget for your current spending levels for food, utilities, and other necessities. Then, plan giving and discretionary spending to fit within your budget.
  • Consider cutting back on retirement savings and investments until you are better financially.
  • Look for “extra” sources of cash.  If you got a large tax refund this year, you can access that money now by reducing your payroll withholdings.  
  • Evaluate your car insurance plan and see if you can cut out some coverages or find a less expensive plan; for example, you might have duplicate benefits if you have a medical insurance plan.
  • Reduce your cable bill by eliminating one or more premium channels.
  • Fast one purchase category for a month, such as specialty coffee beverages, massages, new shoes, clothes, or lunches out. Each month, forgo a different spending category. This system allows you to save money without giving up “luxuries” for an extended time.
  • Earn some extra money on Fiverr, Freelance, or Upwork. These freelance job sites provide a way for you to use your talents to earn money when you have a bit of free time.

It is never fun to tighten one’s belt; however, making necessary changes is preferable to running up large credit card balances and feeling stressed due to the inability to meet your obligations.  

As you consider these options, ask God for guidance. He promises wisdom to those who ask Him. “If any of you lacks wisdom, let him ask of God, who gives to all liberally and without reproach, and it will be given to him.”  James 1:5

My book Honoring God with Your Money offers guidance to help you manage your money according to biblical principles.  

Buy Now Pay Later Apps vs. Credit Cards

As grocery prices continue to rise, you have probably felt the pinch in your family budget. According to Moody Analytics, the average American family is spending $700 more per month on food and other household goods than just two years ago. Incomes have not kept up with inflation. Consumers are looking for options to pay for groceries, and many are turning to Buy Now Pay Later (BNPL) apps. The use of these apps to pay for groceries has risen by 40% in the past year.

Installment plans have been around for decades. Forty years ago, my husband and I bought furniture for our first home using a similar program. We selected the items we wanted and completed a credit application. The store delivered the goods, and we paid for it in 12 payments with no interest accruing. Many furniture companies and other sellers of high-ticket items still use this type of payment plan.  

What’s new is the BNPL apps offer services for all types of purchases, not just large purchases of long-lasting items. Amazon is offering installment plans on many items priced over $50. And many BNPL offer four interest-free payments on groceries and meal deliveries. In most cases, the consumer makes payments every two weeks. These apps provide the convenience of credit card payments but differ in some ways.

  • Credit cards extend interest-free credit for 30 – 60 days. BNPL apps require the first payment at the time of purchase.
  • BNPL allows for small, more frequent payments, whereas credit card balances must be paid in full when the statement is due to avoid interest.
  • Many BNPLs do not have a minimum credit score, so it may be easier for individuals with poor credit to get approved for BNPL purchases.
  • Most BNPLs do not report payment history to credit-reporting bureaus, so using BNPL apps will not help you build your credit history or improve your credit score.
  • If you use BNPL loans regularly, you may have multiple loans open simultaneously, and the loan payments may total more than you can afford to pay.
  • Returns and disputes are more complicated with BNPLs than with credit cards.

Some of the same dangers of using credit cards apply to BNPLs:

  • Users of both credit cards and BNPL apps typically spend more money than they would have if they had paid cash.
  • The buyer consumes the items before paying the last installment. For example, BNPL splits a grocery order into four payments over six weeks. Typically, the person ate the groceries long before the final payment. 
  • Balances not paid off in the interest-free period are subject to very high interest rates. Currently, those rates can be as high as 36%.

Research shows that BNPL users generally have more debt and are under more financial stress than non-users.   Frequent use of BNPL apps can add to your stress as the number of loans and the total payments increase. Of course, irresponsible use of credit cards will also lead to financial stress.

If you are struggling to feed your family during these tough economic times, look for alternatives to buying groceries on credit with either Buy Now Pay Later apps or credit cards. These can include buying more store brands, avoiding grocery shopping and delivery services, building your menus around grocery items on sale, and seeking assistance from your local food pantry.

God does not intend His people to live in financial stress. He has set forth money management principles in His word to help you. To learn more, please read my other blogs on financial management. My book Honoring God with Your Money is another valuable resource you might want to read.