Is College a Good Investment for Your Child?

Many high school students automatically plan to attend college without genuinely considering their alternatives. The U. S. Census Bureau reports that while 59% of all Americans start college, 24% drop out without having earned a degree or a certification. Parents must convey the whole picture about the time and money required to earn a degree or a certificate in a specialized program. If God has called your child into a profession requiring college, they need to pursue the education with the knowledge of the steps it will require. Your job as a parent is to show them all the options. An opening question should be, Is college a good investment for you?

Father and daughter considering career options

Cost of Continuing Your Education

If they decide to pursue education beyond high school, you should help them count the costs and determine which path is best. Take some time to sit down with your son or daughter and add up college costs. Here are a few talking points:

  • Tuition, books, and registration fees
  • Room and board, if you live on campus
  • Fees to participate in sports, fraternities or sororities, clubs, and activities
  • Travel to and from school, if you do not live on campus
  • Foregone income from delaying full-time work while completing your education

Minimizing the Costs of Education

There are ways to make college or a certification program more affordable. Some of these are:

  • Attending a college close to home and commuting rather than living on campus
  • Attending a local community college to get your Associate’s Degree before transferring to a four-year college
  • Earning college credits while in high school through AP classes and dual-enrollment programs
  • Knowing what your goals are in attending college. Many people waste time and money by taking classes without real purpose, or they switch colleges and lose some of their credits.
  • Taking classes online from home
  • Working part-time or full-time while taking classes
  • Earning a vocational certificate rather than a two-year or four-year degree

As you pray with your child about their career path, you should consider vocational alternatives to careers that require college degrees. Many professional service provider careers are in high demand and pay well. There will always be a need for plumbers, electricians, HVAC technicians, and welders. These careers require training beyond high school, but they can learn on the job through apprenticeship programs. This is also true for heavy machine operators and some IT professions. Your son or daughter may be able to earn a cosmetology license or skilled labor certificate while in high school if the school offers those programs.

According to the Bureau of Labor Statistics, about 169 occupations require a bachelor’s degree, and another 100 require a Master’s or higher degree. On the other hand, there are about 100 occupations that require an associate’s degree or vocational certification and about 425 that do not need any formal education beyond a high school diploma  https://www.bls.gov/careeroutlook/2020/article/education-level-and-openings.htm

As you consider together whether college is in their future, they should only go if it makes wise financial sense and if it aligns with God’s plans for their life. Suppose God has called your child to be a physician, a teacher/professor, an attorney, a minister, or many other careers. In that case, he or she must spend many years gaining the necessary education. However, if God has called him or her to be a businessperson, an inventor, a writer, a hairstylist, a plumber, an electrician, or one of many other careers, they may need only to obtain vocational training or on the job training.

If you sit with your child and connect with their visions and goals, they are more likely to make an educated decision about their future. Often, kids get to college and flounder because they don’t know what major to declare. Advisors can persuade them to take all their electives and then decide. However, a community college is a smart alternative if that is the case. Students can complete their electives much cheaper and then move to a state college to declare a major. 

The Bible tells us that God has a beautiful plan for each person’s life. Ephesians 2:10 says, “For we are His workmanship, created in Christ Jesus for good works, which God prepared beforehand that we should walk in them.” God prepared your child to do the work He designed them to complete. He has empowered your child with the skills and desire to do that work. Allow Him to show you and your child His plans and then help your child prepare to fulfill those plans by obtaining the training or education needed to achieve those plans.

Trusting God for Your Finances

Are your resistant to the concept of tithing? Do you consider it a suggestion rather than a command from the Lord? Some people rationalize withholding their tithe because their bank accounts are empty at the end of the month. Others justify not tithing because they see it as God taking money away from them. Perhaps others plan to tithe when the company gives them a bonus or a raise, but those times arrive, and they still do not tithe.

Coins and the heading, The Truth about Tithing.

It is normal to be fearful when you have difficulty paying your bills and making ends meet, especially in this slower economy. Even if you typically can pay all your bills, you might worry you will not have enough extra cash to meet an unexpected expense for circumstances like extended sickness. Wishing for more money is not the solution. 

The solution is to put your trust in God and follow His command to tithe. It may sound counterintuitive that tithing can be the solution to financial difficulty. However, tithing, combined with sound financial management, is the solution.  

Tithing is an act of obedience. In Malachi 3:8, God chastised His people for failing to pay tithes. “Will a man rob God? Yet you have robbed Me! But you say, ‘In what way have we robbed You?’ In tithes and offerings.”  God expected the Israelites to bring in one-tenth of all their crops and livestock to support the priest. He still expects Christians to give one-tenth of their income to support the work of their local churches. The apostles and other early Christians demonstrated this by supporting the ministry of Paul and other teachers and apostles.

Tithing and giving when prompted by the Holy Spirit demonstrates trust in God. In the Sermon on the Mount, Jesus promised His followers that they did not need to worry about their needs because God would always be faithful to meet them (Matthew 6:25-35). In the Bible, God gives us many examples of people who gave sacrificially in obedience, and God met their needs. Two examples are Elijah and the widow in 1 Kings 17 and Elisha and the widow’s oil in 2 Kings 4.

God promises to bless those who are obedient in tithing. In Malachi 3:10, God promises to richly bless those who tithe. God challenges us to trust Him fully and allow Him to demonstrate that He will always give back to us more than we gave to Him.

“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.”

God does not want you to live in fear of being unable to care for your family and meet your basic needs. He has promised to care for those who place their trust in Him. He has also promised that you shall not be in need. One of the most famous passages of Scripture is Psalm 23:1, “The Lord is my shepherd, I shall not want.”

If the Lord is truly your shepherd, you are under His protection, and He will meet your needs. If He is not your shepherd, He desires to be. He loves you and wants to offer you the forgiveness of your sins, eternal life, and His care and provisions while you are on Earth.

In Psalm 34:8, David wrote, “Oh, taste and see that the Lord is good; blessed is the man that trusts in Him.” David was in the midst of a trial, yet he recognized that the Lord is always good. He trusted God in all circumstances, and God blessed David in very many ways. I challenge you to trust God with your finances and to demonstrate that trust by paying your tithes and giving as led by the Lord.

To learn how to accept God’s free gift of salvation, please click “Basics of Salvation” from the menu bar. If you want to learn more about managing your money in ways that honor God and reduce your stress, my book Honoring God with Your Money is a great resource.

Honoring God with Your Money

When you sit down to pay bills, does it create stress and anxiety for you? Do you feel guilty for not tithing, but you barely make ends meet? Is your first thought, if only I could make more money? If so, you are not alone. For most people, a lack of money does not cause their financial pressure. They do not budget their current salary or live within a budget, allowing their wants and desires to dictate their spending. However, when you see your earnings as a blessing from God, most of your stress turns into financial peace. The first step is recognizing that God has entrusted you with your income. Next is embracing the principles that He laid out in His word. If you consistently live outside of your means, you live in debt. God does not want us to live as debtors. 

Bible study on stewarding financial resources
Honoring God with Your Money

I read Dwight L. Moody’s book Pleasure and Profit in Bible Study several years ago. It inspired me to do a word search on what the Bible says about money which led to searches on riches, wealth, poverty, giving, charity, tithing, and greed. I realized that the Bible has much to say about money and finances and began to create teachings based on those guidelines so others could live in financial freedom.   

From these teachings, I created a Bible study, Honoring God with Your Money. Part One of this book is an in-depth study of what God’s word says to us on the subject of:

  • The role of money in our lives
  • Appropriate attitudes toward money
  • The foolishness of trusting in money
  • Tithing, offerings, and charitable donations
  • Business practices

Part Two applies the biblical teachings and budgeting principles and helps you create a budget for your family to achieve your financial goals. 

This Bible study is an excellent tool for young people about to graduate from high school or college, newly married couples, and anyone who struggles to manage their finances. Individuals, couples, or small groups can work through it. Also, I have developed teaching materials for instructors to use in small group settings. If you would like these materials, please email me at susan.ball5@aol.com, and I will happily email them to you. I do not charge for these materials. 

Recently, Deborah Morrison interviewed me for her YouTube channel, Greater is Jesus in Me. In the interview, we went through all the sections in the book and discussed the blessings of managing money according to godly principles. Deborah split the interview into two parts.

Part 1 of interview:  https://youtu.be/_3QFxywuzqo

Part 2 of interview:  https://youtu.be/euThkOk0Kr0

God intends for money to be a tool to help make your life easier. He does not intend for money to be a source of stress. As you go through this study, I pray that you will allow God to bless you with financial peace and empower you to use the financial resources that He entrusts to you to care for your family, help others, and honor God.

Financial Success Can Help You Realize Your Dreams

One of my favorite songs is “If I Were a Rich Man” from the musical “Fiddler on the Roof.” The family patriarch, Tevye, sings the song, and it begins like this,
“Oh, Lord, you made many, many poor people
I realize, of course, it’s no shame to be poor
But it’s no great honor either!
So, what would have been so terrible if I had a small fortune?”

And it ends with,
“Lord, who made the lion and the lamb
You decreed I should be what I am
Would it spoil some vast eternal plan
If I were a wealthy man?”

In the middle, Tevye shares with God all the ways his life would be easier if he were wealthy. It is a humorous but self-centered rendition of the life of ease Tevye dreams of for his family. He would have multiple staircases—one going up, one going down, and one going nowhere. His wife would have ‘a proper double chin’, and he could sit around having religious discussions with the learned men. Poor Tevye always works hard and provides for his family but never achieves financial success.

Two people climbing an incline with a third person helping them up.

Like Tevye, many of us dream of the lifestyle wealth would allow us to have. Then we read Scriptures that speak against being wealthy, and we may rethink our desire for financial success. Matthew 19:24, “And again I say to you, it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God.”

Of course, Christ was not saying that a wealthy man or woman could not go to Heaven. Instead, He was speaking against making riches a priority in your life. If you wish to be rich, so you can be treated as a VIP and live a life of ease, then your focus is likely not on the things of God. On the other hand, if you wish to provide for your family and use your excess money to bless others, then God may be able to trust you with wealth.

Sharing your wealth with others is one of the blessings of achieving financial success. You can go beyond tithing and generously giving to missionaries, food banks, homeless shelters, and other causes that God lays on your heart. You will be a blessing to others and be blessed in return.

Financial success has other benefits as well. It can provide you with the freedom to try new endeavors. As a business consultant, I meet people weekly who want to start their own business. They are more likely to be equipped to launch their business if they have achieved enough financial success to have savings to invest in their business and see them through the start-up phase.

Financial success can allow you to retire at a relatively young age. Of course, retirement can be pretty dull if you do not have meaningful endeavors to keep you active and help you feel worthwhile. However, retirement can be quite rewarding if you use your time to engage in hobbies, travel, volunteer in schools and hospitals, go on mission trips, or care for aging loved ones or grandchildren.

An alternative to early retirement is taking a sabbatical from work. They can last a few weeks, months, or even years. Sabbaticals can allow you to try a new vocation temporarily, take an extended vacation, or engage in short-term volunteer projects. College professors often use them to teach in a different country, whereas some lifelong learners immerse themselves in a different culture during their sabbaticals. The break from the mundane schedule of life can rejuvenate your motivation at work and help you refocus on personal goals. 

What is your dream? It likely requires money. By managing your money well and working hard to gain financial success, you will be more likely to achieve your goals.

God has designed you for a purpose, instilling unique dreams and visions in your heart. Managing your finances well can allow you to pursue your dreams. My blogs on money management and stewardship are great resources for learning how to manage your money and accomplish God’s plan for your life. My book, Honoring God with Your Money, is another resource to help you learn money management principles.

Save Money and Develop a New Mindset with a Financial Fast

If you’ve ever had surgery or bloodwork for your cholesterol levels, the test required you to fast for 8 hours or more. Many people also endeavor to fast for its health benefits to promote better digestion, weight loss, lowering cholesterol, and resetting appetite. Others may fast for spiritual reasons, like drawing closer to God for spiritual direction or increasing discipline.

Sack with bundles of cash falling out

However, eating is not the only item you can limit when fasting. I have “fasted” activities, such as crossword puzzles, computer games, and television, to gain more time to accomplish a goal or project. My time management fasts typically lasted until I achieved my goal or task.

A financial fast might be in order if you need to control your spending better. Whether you are just beginning to set up your budget or years into managing your money and want to reach a new goal, this plan might be the catalyst for your success. A total financial fast eliminates all unnecessary expenditures for a set period, whereas a partial fast eliminates specific spending categories. After you review your budget, decide which option works for you. During the period of the financial fast, you cut your spending. Fasting should increase your bank balance. However, you will likely experience other benefits.

Benefits of a Financial Fast:

One benefit is an increased awareness of how often you spend money on non-essentials. The ease of your purchases can hinder your realization of how much you spend. While shopping, a store offers multiple ways to pay for items. Pulling out a credit card or clicking the online “order button” distances the shopper from feeling their loss of money. Consider if you paid cash for every transaction. As the stack of bills shrinks in your hand, you connect the loss with the purchase. If you habitually charge $5 for breakfast and $10 for lunch every workday, you may not realize that those purchases add up to $330 each month (based on 22 workdays per month). The individual transactions are hardly worth noting when you examine your credit card bill, but the total makes a big dent in your bank balance. You will be surprised when you implement your fast. Those quick habits of taping your phone or swiping your credit card will lessen, and your bank account will grow.

A second benefit will be breaking bad habits and creating good ones. If you have been going through a drive-up for a coffee and breakfast sandwich, and now you skip that, you may begin to make coffee and breakfast at home. After a few weeks of this, making breakfast at home should be a regular habit, and going through the drive-up might become a once-in-while treat.

A third benefit is saving time. It takes time to get from your office to your car, drive to a restaurant, eat, and return to your office.   Packing a lunch takes much less time, and you can use that time savings to do something else, such as taking a walk, writing a letter, or engaging in a friendly conversation with a co-worker.

Finally, you are developing a new mindset of finding ways to enjoy life that do not require spending money. If you decide to fast spending money on recreation, you will work harder to seek free entertainment options. You will likely find many available to you and your family.

Action Plan for a Financial Fast:

  1. Decide on a goal for your financial fast. Possible goals might include:
    a. Paying off some debts
    b. Saving for a vacation
    c. Developing an appreciation of “free” activities and habits
    d. Demonstrating to your children that you have the self-control to delay a purchase until you have ended your spending fast.
  2. Set a time frame. Many financial experts recommend a 21-day fast, which is based on estimates that it takes 21 days to make or break a habit. Other experts recommend a period of intermittent financial fasting, such as fasting financially for one week out of every month. Your time period could be shorter or longer, depending on your goal and what spending category you will fast.
  3. Decide what you will fast. One option is to go on a strict fast, where you only pay bills and purchase groceries and medicine. Another option is a partial fast in which you forego spending for specific categories of items. For example, if buying shoes is a personal weakness, you might fast shoe purchases for an extended period. If you are saving to go on a cruise, you might give up dining out and recreational spending to have more money going toward your cruise budget.
  4. Plan for success. If you give up eating fast food for breakfast and lunch, ensure you have groceries to prepare those meals at home. Have motivational phrases and Scripture verses in your wallet, car, and computer to help you stay motivated. Celebrate your success without breaking your fast.
  5. Avoid temptations. If you are fasting clothing expenditures, avoid visiting your favorite apparel sites and stores. Throw away catalogs and delete marketing emails without reading them.

Recently, I participated in a 24-hour dietary fast at the request of a friend with a terminally-ill child. The purpose of the fast was to spend time in prayer for the child. I had no other motivation. Although I have been working to lose weight for a while, I did not fast with the expectation of losing weight. When the fast ended, however, I found that my appetite had been “reset.”  I have been able to eat less and feel satisfied, which has led to weight loss. A financial fast can provide the benefit of resetting your spending mindset, which will reap economic benefits for you long after you have ended your financial fast.

My Bible study, Honoring God with Your Money, is a great resource to help you understand how to manage your money better and achieve your financial goals. It is available on Amazon. If you would like to receive my quarterly newsletter with tips on managing your money, please complete this short form: Honoring God with Your Money (list-manage.com)

Why More Money Is Not the Solution to Your Anxieties

Are you struggling with financial stress, low self-esteem, depression, or marital discord? People often believe the solution to their stress and unhappiness is more money. Do you often think, “If I only had more money, I would be happier?” Perhaps you imagine winning the lottery and believe all your burdens and financial problems would melt away. Would all your troubles disappear and your attitude permanently change? 

Are extremely wealthy people happier? The rich and famous may have more earthly treasures, but this does not lead them to greater happiness or satisfaction. Many studies have shown that extreme wealth is a hindrance to happiness. American author, Graeme Wood, wrote an article in The Atlantic entitled “Secret Fears of the Super-Rich.” The piece included a behind-the-scenes look at a project that asked wealthy individuals, those with a net worth above $25 million, to write freely about their deepest concerns. The stunning revelation to most readers was that the participants faced many anxieties, including isolation, worries about work and their families, and insecurities about their wealth. Graeme Wood concluded, “The respondents turned out to be a generally despondent lot, whose money had contributed to deep anxieties involving love, work, and family). (The Atlantic, April 2011 issue). Since the release of the landmark project on wealth and happiness, more recent studies have verified these conclusions.

Let us not overlook the idea that some may be in a desperate position and struggle daily to provide the basic necessities of life for themselves. They will likely have some anxieties that money or access to the essentials could resolve. Otherwise, money is not your answer to your worries. 

Life is full of many challenges, and Jesus himself said, “In this world you will have trouble.” John 16:33. A personal relationship with Jesus Christ is the solution to reducing and managing your anxieties. However, the Bible does not suggest that all your troubles disappear once you have a relationship with Jesus. The scriptures offer a solution to managing our anxiety and lifting the burden of worry. 

Abie Kulynych, a pastor and author, believes one way we can reduce our anxieties is by actively remembering God’s provisions in the past. In his devotional “Thou Art with Me, Volume 2,” he discussed how the nation of Israel became anxious about their needs being met, despite God supplying them with manna daily.  “For Israel, there came a point where gathering manna was simply what they did rather than what God had done for them. They were so accustomed to the miracle that they forgot it was miraculous. What if the key to quieting the voice of anxiety is constantly reminding ourselves of God’s goodness? What if Israel, every morning, when they walked out into the open places to gather their manna, had stopped and said, “Look what God has done for us today?” What if we did more than count our blessings? What if we recounted them? I’m not talking about telling our story to someone else, but telling it to ourselves, regularly, daily, constantly. I think that if we told our testimony to ourselves more often, we’d have more opportunities to share it with others.” (Page 317, Commentary on Psalm 149)

God blesses each of us daily. If we reflect on God’s blessings and His past provisions, we will be more likely to trust Him to meet our future needs. God wants us to trust Him. He does not want us to be anxious but to come to Him with our needs.  

God instructed the Israelites to record their blessings and to remind their children of God’s faithfulness in the past. We need to incorporate that command in our lives and with our children. 

Here are a few suggestions to start recording God’s faithfulness in your life: 

  1. Create a blessings journal.
  2. Read your journal regularly to remind yourself of God’s faithfulness.
  3. Share stories of God’s provisions with your children to increase their faith and trust in God to meet their needs.
  4. Place notes around the house to remind you to take all your needs to God in prayer. He wants you to ask for His help and is delighted to answer your prayers and meet your needs.

“Be anxious for nothing, but in everything by prayer and supplication, with thanksgiving, let your requests be made known to God; and the peace of God, which surpasses all understanding, will guard your hearts and minds through Christ Jesus.” Philippians 4: 6-7

If you have not yet accepted Jesus Christ as your Savior, you have not yet experienced the peace of God. I urge you to accept Jesus’s free gift of salvation and experience the true peace that can only come by knowing that your sins are forgiven, and you will spend eternity in Heaven. Guidance on how to take this life-changing step is in the link “Basics of Salvation.”

My Bible study, Honoring God with Your Money, is a great resource to help you understand how to manage your money better and achieve your financial goals. It is available on Amazon. If you would like to receive my quarterly newsletter with tips on managing your money, please complete this short form: Honoring God with Your Money (list-manage.com)

Feed the Hungry by Reducing Your Food Waste 

Can you relate to this phrase often told to a child 40 years ago at a dinner table? “You better clean your plate because there are starving children in Africa!” When I was young, my parents used to tell all 9 of us that phrase. It never made sense to me that cleaning my plate could impact whether other children were hungry. And, of course, if cleaning my plate results in me overeating, it will not benefit anyone and could harm me.  

Today, there are still hungry children. At least 1 in 6 children in the U. S. face food insecurity. Cleaning my plate still will not help those hungry children. On the other hand, if I reduce my food spending, I could donate money to one of the many organizations devoted to feeding the hungry.

Did you know the average American family throws away about $2,000 of food annually? In a society that feels the slowing down of the economy, it might feel like you have to pull back on your donations to non-profit organizations. However, if the average family could reduce waste and spend less, they could help feed hungry people. 

Consider challenging your family with these ideas for reducing waste and spending less on food expenditures: 

(1) eating smaller portions, 

(2) saving leftovers for second meals, 

(3) eliminating/reducing food waste by taking a bit more care in planning meals and using fresh food before the expiration date,

(4) allowing your children to participate in meal planning, shopping, and making to reduce the burden for you. 

These simple steps can help reduce food spending enough to make a difference in the lives of hungry Americans and others worldwide.

Here are some other motivational thoughts on helping you to reduce your spending on food and save to make donations:

For only $38 per month, you can sponsor a child through Feed the Children. Reducing your food waste by 23% would provide enough extra money to support a child. 

If you reduce your food waste by 30%, you will save $50 per month. A $50 donation to No Kid Hungry will provide up to 500 meals. 

A reduction of 15% would allow you to provide a gallon of milk for 15 families through Food for Others. For another 15% reduction, you could provide 20 families with a dozen eggs.

Volunteer at a local food bank when you turn in your donation. Your motivation increases when you see the impact it makes on the families in your community. 

Jesus encouraged us all to feed the hungry. “When the Son of Man comes in His glory, and all the holy angels with Him, then He will sit on the throne of His glory. All the nations will be gathered before Him, and He will separate them one from another, as a shepherd divides his sheep from the goats. And He will set the sheep on His right hand, but the goats on the left. Then the King will say to those on His right hand, ‘Come, you blessed of My Father, inherit the kingdom prepared for you from the foundation of the world: 35 for I was hungry and you gave Me food; I was thirsty and you gave Me drink; I was a stranger and you took Me in;  I was naked and you clothed Me; I was sick and you visited Me; I was in prison and you came to Me.'”  Matthew 25:31-36

If we all take steps to reduce our food wastes and expenditures, we can change make a meaningful difference in the lives of others and fulfill Jesus’s command to feed the hungry.

My book “Honoring God with Your Money” can provide you with many other ideas to reduce your expenses and manage your money. For other ideas on managing your money, please sign up for my quarterly newsletter: https://susaneball.us5.list-manage.com/subscribe?u=c4402ad22eed92a13b211a5ed&id=db5b79b8b5

Helping Your Child Establish Credit

When I graduated from high school, my parents gave me a sewing machine as my graduation gift.   The gift extended beyond the device, and my mother used this opportunity to help me establish credit and a good credit report. Sewing was a skill my mother taught me, and she knew that I enjoyed it. A few days after graduation, Mom and I went to the store and picked out a cabinet for the machine, which I would pay for myself. I completed a credit card application and put 20% down toward the cabinet purchase. A few days later, I received a Singer credit card in the mail. When the bill arrived, Mom had me write a check to pay the balance in full. So, at 18, I had a credit card with a record of promptly paying the debt in full.

My parents set a good example to use credit sparingly and to maintain an excellent credit record. In those days, gasoline companies and department stores issued most credit cards. They were used only in the store that issued the card. General-purpose credit cards, such as Visa and Discover, were rare in those days. I do not recall ever using the Singer credit card, but having it allowed me to apply for and receive a Sears credit card while in college. I used that card sparingly and promptly paid the balance in full upon receiving each bill. My mom invested in a gift that she knew would benefit my future.

When my sons began driving, I co-signed for a credit card for each of them. I wanted to ensure that they never got into a situation such as needing gas and not having any money. They had limits on how they could use the card. I could check the card online at any time, and my husband and I  expected them to pay their balances in full each month. If the bill was due and had not been paid, I transferred money from their savings account to pay the bill. We discussed their spending habits regularly. With a bit of guidance, they maintained excellent credit during college. When our first son to marry wanted to purchase a house, the mortgage lender was impressed that a twenty-two-year-old had a credit score in the high 700s.

A wonderful gift any parent can give their child is to help them establish good credit. Teaching the principles of financial integrity and maintaining good credit is critical to helping your children transition into adulthood.

Here are some guidelines to help parents get started on training their children to establish credit:

  1. Model responsible use of credit.
  2. Have family discussions on your budget regarding discretionary spending.
  3. Don’t assume your child has learned what they need to know about credit in school. Talk to your child about establishing and maintaining credit.
  4. Help your child to develop self-control. Early in their lives, teach them that you cannot afford to buy everything they want. Discuss with them the need to make choices and prioritize needs over wants.
  5. Demonstrate self-control by saving for larger, discretionary purchases. Share information with your child on how your savings are accumulating and how soon you will be able to make your purchase.
  6. Help your child develop a savings plan when they are young. Putting aside even a small amount each week or month can result in a tidy sum by the time they graduate high school. This money can be applied to college or their first car.
  7. Co-sign for a credit card for your child and discuss their spending habits each time the credit card bill comes. Discussions should be positive and affirm good decision-making. A good time to do this is when they start driving and going places without you.

Children do not instinctively know how to establish credit and maintain a good credit record. They must be taught, and it is your responsibility as their parent to instill good credit decision-making skills. Good credit will pay great dividends in your child’s future. “Train up a child in the way he should go, and when he is old, he will not depart from it.”  Proverbs 22:6

For more tips to help you manage your financial resources, please see my other blogs in the Finance tab. My book, Honoring God with Your Money, is full of guidelines to help you use money in a way that builds true wealth. Click here to sign up for my quarterly newsletter:  https://susaneball.us5.list-manage.com/subscribe?u=c4402ad22eed92a13b211a5ed&id=db5b79b8b5

Hope is Not a Plan

As a Christian, my hope is in the Lord, who holds my life in His hands. As a writer, I hope people buy my books and read my blogs. As the owner of short-term rental property, I hope that vacationers decide to stay at my home. But, as a small business consultant, I share with my clients the mantra, “Hope is not a plan.”

Hope is essential to taking risks and moving forward with new opportunities in your life. However, hope does not bring me readers or renters. I must take action to inform potential readers of my books and blogs and potential renters of my property. Those actions involve effort, such as marketing, advertising, and asking for reviews.

If you are trying to achieve a financial goal, hope will not help you to accomplish your goal. You need to have a plan:

  • If you want to purchase a new home or car, you need a plan to accumulate the down payment.
  • If you want to get out of debt, you need a plan to start paying off one debt while meeting the minimum obligations on your other debts.
  • If you would like to retire early, you need to start putting money into a retirement account at an early age and be consistent in making contributions.
  • If you want to improve your credit score, you need to obtain your credit report and assess what debts need to be paid off, what errors need to be corrected, and what steps you can take to reduce your total amount of debt.
  • If you want to start your own business, you must maintain a high credit score and set aside money to invest in your business.
  • If you want to start budgeting, you need to research and evaluate budgeting tools to determine which one you will actually use.

Key Factors of a Plan to Accomplish a Financial Goal:

  1. Live below your means. If you want to save money for any reason, or if you’re going to pay down debt, you must spend less than you make. This requires you to know what you spend and evaluate where to make cuts.
  2. Write down your goals. Studies show that writing down your goals significantly increases your chances of achieving them.
  3. Have an accountability partner. If you are married, you and your spouse should hold each other mutually accountable. If you are unmarried, ask a friend to be your accountability partner. Hold each other accountable by encouraging each other and reminding yourselves that money spent cannot be used to meet your goal.
  4. Celebrate milestones. Give yourself a pat on the back when you hit an intermediate milestone, such as paying off a debt or saving a certain amount of money. Milestone celebrations should be free or low-cost to keep you on track to achieve your goal.
  5. Make it easy to save. Set up payroll deductions for retirement or other savings so you never have access to the money. Download a budgeting tool that makes it easy for you to track your spending. Avoid “window shopping,” which increases your desire for items you do not really need.
  6. Keep your goal in front of you. Have a picture of your dream home or car on your refrigerator. Write your business plan and look around for possible locations. Develop a bucket list of all the fun things you will do in retirement.
  7. Evaluate your progress periodically, and if you have gotten off track, take action to correct your mistakes and get back on the right track.

Your plan does not have to be complicated to be effective. Start dreaming, set a goal, and develop a plan to reach that goal.

Setting and achieving financial goals helps you honor God in how you use and manage the financial resources He has entrusted to you. It also allows you to build treasure in Heaven. For more tips to help you manage your financial resources, please see my other blogs in the Finance tab. My book, Honoring God with Your Money, is full of guidelines to help you use money in a way that builds true wealth.

If you have never accepted Christ as your Savior, please consider accepting the free gift of salvation from your sins and eternal life in Heaven. It will pay dividends for all of eternity.

Minimizing the Costs of Credit Card Balances

Americans have a love affair with credit cards. They make life easier while also making it easier to overspend. Studies reveal that a purchaser will spend an average of 20% more on an item when using a credit card than when paying with cash.

Person using a laptop computer and holding a credit card. Title is "Minimizing the Costs of Credit Card Balances."

Credit card usage peaked in the fourth quarter of 2008, as the nation entered a severe recession, with balances reaching a then-high of $866 billion. Credit card balances fell significantly over the next 5 years. As the economy recovered, however, the use of credit cards and credit card balances began to rise. Today, credit card balances are approaching the $1 trillion level. The average consumer carries a credit card balance of $7,279 (Lendingtree.com). Fifty-three percent of credit cards being actively used are not paid off in full each month. The average interest rate of these balances is 20.92%, and the average interest rate being offered to new borrowers is 23.65%. 

The good news is that most Americans make regular credit card payments, and only 2.25% of credit card balances are delinquent by 30 days or more.

The minimum credit card payment is typically about 2% of the balance. On the average balance of $7,279, the minimum payment would be $86. At that payment and an interest rate of 20.92%, it would take a borrower 28 years and 3 months to pay off the debt. The total interest paid would be $27,776. In this scenario, the $7,279 in debt would cost the borrower $35,055.

When a consumer (that’s you) begins to take an active role in their financial future, they can minimize the interest on credit card balances. Remember, interest is handing part of your hard-earned paycheck to someone loaning you money. If you are not paying off your credit card each month, you need to determine why you carry a balance. 

The steps below can help you make advances on getting a handle on your credit card debt: 

  1. Always pay at least the minimum balance on time.
  2. Set up automatic payments to ensure that payments are always made on time.
  3. Pay more than the minimum balance whenever possible.
  4. Consider the actual cost of debt before making large purchases on credit cards.
  5. If your balances are on multiple credit cards, prioritize paying off the card with the highest interest rate first.
  6. Live below your means so that you will have some money each month to put toward your credit card balances.
  7. Create a budget to live within your means. (Refer to my past posts on budgeting) 

To learn more about how to manage your money and pay off debt, please click the Finances categories tab to find many blogs on money management, budgeting, and stewardship. My book Honoring God with Your Money is a great tool for financial money management.

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