Kendal Perez at U.S. News & World Report, reported that the average American household has more than $130,000 in debt, $15,000 of which is on credit cards. We cannot afford the stuff we insist on accumulating!
Heidi Freeman, an assistant professor at the University of the Sciences in Pennsylvania, found that 90% of people who identified themselves as part of the simple living movement reported 
improved physical health. Although earning less money, many respondents also said their mental health improved. They are spending more time with friends, family, and getting needed physical activity. Many young people are choosing to live simply and avoid the stress they see in their parents’ lives. By living without consumer debt, they are free to go where the Lord leads.
Tim Kasser, a professor at Knox College and author of The High Cost of Materialism, found a link between materialism and poor physical health including unhappiness, depression, anxiety, anger, isolation, alienation, smoking, alcohol, and drug use.
Rather than adding to what you have, he says to ask what can you subtract? What can you stop doing?
And, are those expensive youth sports really worth it? Does the time and cost add to the long-term goals of your family? Just because others participate doesn’t mean you need to follow suit.
Flora Tan at ASimpleChristian.com says simple living allows us to focus on what is truly important – the things with eternal value. When we let go of everything that hinders our walk with God we can embrace Him fully. Without being encumbered by material things and entrapped by the expectations of others, we can more easily give ourselves to God and walk in His will.
In Matthew 6:19-21, Jesus said, “Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal, but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. For where your treasure is, there your heart will be also.”
First, I know a few folks who think life insurance is bad because they see it as a lack of trust in God to provide for their families. I can make a case to the contrary; I think it is good planning to take advantage of this tool to care for your family’s needs. So if you don’t have any or inadequate coverage, here is my advice.
The purpose of life insurance is to allow your family members to pay the bills and live their lives as planned despite your absence. It is really hard to know how much coverage is needed and to purchase too much or too little. 
Here is what you need to consider for coverage based upon an article at Kipplinger.com
Death expenses. A funeral, burial and related expenses should be covered. I don’t believe in buying expensive caskets, but make your own estimates here for what you will need.
Mortgages and other debts. Total your mortgage balance, car loans, student loans and any other debts that would be a heavy burden on your survivors. Be sure all of those are covered by your insurance amount.
Add future education expenses. This calculation can be tricky because you need to consider the cost of college at the time your kids enroll.
Income replacement. Once you cover funeral expenses, debts and education, calculate future income and earnings.
Add all four categories to estimate how much life insurance is appropriate, then tweak the number to reflect personal circumstances.
For most families, this exercise will work out to an amount in the high six-figures, possibly even $1 million or more. But don’t be frightened. With term insurance, boosting your death benefit by hundreds of thousands of dollars should cost just a few hundred dollars a year.
If you want to learn more about how to apply God’s principles to your finances, visit Crown.org
Originally posted at Christian Post June 24, 2016.
Dear Chuck,
With the Fourth of July coming up, I’ve been thinking that the Founding Fathers would roll over in their graves if they knew the kind of debt America is in. Time magazine recently reported that “Most critics of the (national) debt cite the fact that at $19 trillion, the national debt represents about 102% of the U.S. gross domestic product, the sum total of all the economic activity in this country each year.” Consider me a critic! It’s amazing to me that our country can owe more than the economy makes. What advice would you have for Uncle Sam? Is America in financial trouble?
Praying God will Bless America
Dear Praying,
I saw that story in Time which noted that with the debt load the U.S. carries, it amounts to $42,998.12 owed per man, woman and child. I find that tragic and ridiculous considering the decreasing number of Americans in the workforce. Add this amount to every household budget in our country and we have a serious problem. The math for repayment simply does not work.
The best piece of advice I can first offer you is found in your letter. We Christians – especially on America’s birthday – need to be praying for our country and for the election coming up. America needs God’s help for all the issues we face, and certainly a leader that can rein in the out of control federal spending should be among our prayer requests.
When it comes to debt, it’s important to understand the tension between having some debt and balancing a budget. The country’s debt has been allowed to increase, in part, because the government can manipulate the currency, interest rates and a number of factors to force the math to look good… on paper.
Time also wrote: “Last year, Washington’s total interest payments to service the national debt were just under $225 billion. At the same time, the federal government pulled in nearly $3.2 trillion in total revenues last year. So the federal government’s debt obligations represented just 7% of its income last year, down from 17% in 1995.”
But the problem with minimizing the impact of debt with this reasoning is that just because it is possible to cover a debt payment today, that doesn’t mean it will be possible to handle it tomorrow. For one, the debt continues to grow year after year and our government cannot even agree on a balanced budget to stop increasing the debt! Second, our federal interest rates are at historic lows. Imagine the cost of the debt if interest rates were to suddenly double or triple!
No one knows what the future holds, and the greatest care should be given to choices that will not burden our children’s future. Our 31stpresident, Herbert Hoover, once observed, “Blessed are the young, for they shall inherit the national debt.” Obviously this was meant to be humorous at the time, but it is no longer a joke; rather, it is a sad reality for generations to come.
The government, like many people, has rationalized debt by arguing that we can make the payments, while failing to consider whether we should take on new obligations without re-ordering current priorities. With an economy slowing down, it will become more difficult to ignore the impact of debt payments, especially when your debt piles up in billions.
Most people, when presented with a new goal or a desired purchase, must look at everything on the table and make choices. Government should as well. It is not wise to justify spending based on assumptions that you probably can make the payments.
I have no doubt that the Founding Fathers would be horrified by the level of debt dragging down the American economy – money that cannot be invested in growth but rather that just keeps our proverbial heads above water.
I’ve written about what our first leaders believed about debt. Consider that John Adams, our nation’s second president, once observed: “There are two ways to enslave a nation. One is by the sword. The other is by debt.” George Washington once cautioned, “To contract new debts is not the way to pay old ones.”
I would encourage everyone looking at this year’s elections to ask the candidates how they would attempt to reduce our nation’s debt; what programs might they be willing to cut; and what specific proposals they recommend for strengthening the economy.
It’s popular at election time for politicians to promise to buy voters the moon in order to get their support. But eventually, campaign promises can become ruinous debt that taxpayers must pay back in the cold light of day.
If you are having problems with debt, Crown has resources that can help, and we also have some valued partners like Christian Credit Counselors who can assist you in making good decisions with the debt you may have. But I also hope that as we get our own houses in order that our leaders take on that responsibility for the nation. Please join me in praying for God to bless, to guide and to protect America as we celebrate another American birthday on the Fourth of July.
Dear Chuck,
As we celebrate Father’s Day this weekend, it seems to me that today’s dads are under pressure of all kinds as well as having to endure being the butt of the joke too much of time. Father may not always know best, but Hollywood makes dads appear weak, stupid and clueless. What kind of leadership does God require of husbands and fathers? And does God require men to be the primary breadwinners, bringing home more than their wives? My wife and I both work, and I’m not sure how God sees that.
Dual Income Dad
Dear Dad,
Your question raises a common confusion: the distinction between leader and provider, and how God instructs men on both. God the Father – the image that we are given in scripture for the highest and best leader of all – provides us with a template for understanding what is expected of men … and what is not. In the Bible, God lays out a chain of command, which does not subjugate, but rather organizes how people work together, and at the foundation of the structure is sacrificial love by the leader who is held to the highest standard.
When it comes to organizing leadership, 1 Corinthians 11:3 puts it like this, “But I want you to realize that the head of every man is Christ, and the head of the woman is man, and the head of Christ is God.” In this outline, we see God detailing who is accountable for whom in relationship. God, out of love for the world, sent His Son to die for us. He made a plan to care for all of us. He asks the most of Himself. The husband is told to lay his life down for his wife and family as well, following God’s example. Accountability does not equal tyranny, but rather describes a sacrificial relationship.
Consider that wives are told to love and respect their husbands, while husbands are ordered to be like Christ. “Husbands, love your wives, just as Christ also loved the church and gave Himself up for her,” notes Ephesians 5:25. Husbands and fathers, we are called to sacrifice our own desires for the good of our family. This requirement ranks far above money. It involves time, planning, preparation and self-discipline for the goals and good of our loved ones. But does that responsibility also include the requirement to make all the money in the family?
The short answer, I believe, is no. The Bible does not indicate that a good husband and father brings home all the income or even the most, but he is required to work for it to the best of his abilities. This is not a punishment. Genesis 2:15 says, “The Lord God took the man and put him in the Garden of Eden to work it and take care of it.” In the New Testament, we read in 2 Thessalonians 3:10, “If a man will not work, he shall not eat.”
A husband is required by God to care for the good of all in the family. 1Timothy 5:8 says, “But if any man does not provide for his own, and especially for those of his household, he has denied the faith and is worse than an unbeliever.”
This verse indicates that a husband and father is expected to provide for his family, to know their needs and to plan how to care for them. But there is no verse that says “Thou shalt have a larger W-2 (wage) than thy wife in this fiscal year.”
Some women do work — even in the Bible. In Proverbs 31 for example, we read about the industrious woman, who cares for her household and contributes to the income through her businesses. God chose Deborah to rule as a judge over Israel in the Old Testament, and we know of married couples like Aquila and Priscilla who worked together as tentmakers. Glimpses of couples laboring together are woven throughout the scriptures without any condemnation of the family where the wife may have earned more.
But God does require something from those in leadership and holds men accountable for their management of their homes and families.
A husband and wife together may decide that both need to work, and may organize their resources to achieve goals for their children and loved ones. But I believe that the scripture indicates that while God appreciates the labors of all, it is the husband and father who will be held accountable for keeping the family on track.
When counseling his pre-engaged daughter who is a physician and her future fiancé, an entry level accountant, a friend asked his daughter if she would be willing to respect her husband even though her initial income would be far greater than his. And second, in the event they were ever called to live on his income alone, would she be comfortable if that required a downgrade in their lifestyle? She said yes to both questions. He gave his blessing to the couple and they are now happily married.
The often-devastating impact of finances on marriage is such an important issue that I’m writing a book on this now, to help couples overcome the kinds of financial stresses that tear families apart. At the end of the day, it’s important for both husbands and wives to see the good of the family as greater than any one person’s individual desires.
A great first step to setting priorities for your family is make sure that what you believe about God’s principles for finances aligns with how you actually behave with your finances. The MoneyLife Indicator assessment was designed to help you identify areas of strength and weakness and provides an Action Plan for making changes. So, make it fun and plan a date night with your spouse to discuss your individual results, the impact on your family and what steps you want to take together!
Now the correct answer is that it is important that you have BOTH. But you may be thinking you have neither! Okay, time for some coaching.
A winning sports strategy involves a strong defense and a strategic offense. When both of these tactics are in place, the results can be far greater than one without the other.
Think about it this way, how you earn your income is your offensive strategy and how you manage your expenses is your defense. You can focus all your energy to make more money and build a strong offensive strategy, but if you ignore your expenses they can quickly get out of control and exceed whatever income you bring in.
Depending on your circumstances you may need to concentrate more on one strategy than the other. If you need to focus your efforts on building your defensive moves, I recommend:
Once you have established a strong defensive approach to manage what God has provided, you will want to focus on your offensive strategy to maximize the return on your income. And I’ve got three offensive moves for you to make:
Now that you are ready to create your financial game plan, we’ve got lots of resources to help you accomplish each defensive and offensive move. And if you need extra help tackling overwhelming credit card debt, our partners at Christian Credit Counselors are experts at developing debt management plans.
Dear Chuck,
My husband and I are more concerned every day about how we are going to help our children get through college without burying themselves in debt. It’s starting to be similar to the costs of buying a house! What can we do to help our kids graduate with as little debt as possible?
Frugal Folks
Dear Frugal,
I share your concern! Forbes reports that the projected costs of a 4-year degree from an elite college can run as high as $334,000 … and that’s assuming the kids make it out in 4 years! Strategies exist for cutting those costs if you really work at it. Not long ago, my wife and I proudly watched one of our sons graduate from the University of Georgia – debt free. I’m not saying it’s easy, but it is possible.
As I wrote in this column last week, before you make an investment in a college education, take some steps to be sure that you are in a field of study that is suited to your unique and God-given design. Too many students increase the costs of their educations by switching their majors and adding years to their schooling. Borderzine.com reports, “About 80 percent of students in the United States end up changing their major at least once, according to the National Center for Education Statistics. On average, college students change their major at least three times over the course of their college career.”
Time is money when it comes to a degree. And time spent effectively in the high school years can save thousands of dollars in college tuition fees.
I strongly encourage parents to enroll their children in as many high school AP (Advanced Placement) classes as possible – classes that can also be counted for college credit. These classes, available at most high schools, often have more homework and a test you pay for at the conclusion (in the neighborhood of $100), but if the college your child attends accepts AP credits, you can save thousands per class and shorten your child’s time in college. Along these lines, get basic coursework out of the way at a local community college during summer breaks. Such classes provide real value and allow your child to focus on the more specialized classes in their major when attending a more expensive school.
Once you’ve chosen a college, explore whether your child can also “CLEP” out of some classes by participating in the College Level Examination Program. This allows you to buy a study guide and to test out of some graduation requirements. Usually, this won’t work for classes in a major, but if your child dreams of never taking another math or science class, CLEP may make their dreams come true! You probably will pay a fee for the test, but again, it can save the time and money of an entire course of study.
While still in high school, your children need to understand that with their high school grades and ACT or SAT scores, they are building a case for scholarships. Encourage your students (when they complain of how bored they are in high school) with the fact that good grades can equal scholarships and grants — money they don’t need to pay back. Good grades, literally, can become cash in the bank. In addition, each school usually has special scholarships and grants you should explore based on their chosen degree, so explore the website of their chosen school. I have always told my boys that good grades are the best paying job you can get in high school.
Another helpful way to save money is to put your children’s online, social media skills to work looking more broadly for scholarship monies and opportunities. The daughter of a friend of mine actually won scholarship money by writing an essay for a cement lobby she saw advertised online. She built her college bank account with a few well-chosen words on the construction industry. All kinds of retailers – from grocery stores to sports equipment – have money to give away. Go get it!
Still, I highly recommend that no matter what your major is in college, try to minor (or at least take some classes) related to money. Assuming that your child’s college education results in a job, I highly recommend that they include an economics or personal finance course in their schedules. Financial education is woefully inadequate in American high schools. The Council for Economic Education has found that only 17 states require some kind of personal finance instruction to graduate from high school, with only six of those actually requiring students to pass a test. Crown also has an easy-to-use guide for building a functional budget. It’s never too soon to show your children how a paycheck must be broken down to cover obligations and invest in dreams.
And don’t forget that your children can go to work to get money for school, and may even consider joining the military to cover the costs. I know that I worked in college, learning the important skills of balancing work and study. Working students fare better in college than non-working students.
I hope what you’ve learned in this column so far is that there is a lot that our children can do to take control of their college costs and to invest in their own futures. This is not your burden alone. But if you are wondering about how parents can prepare, I recommend you consider a 529 savings plan or other tax savings options.
This is one of the best-kept secrets of college preparations. In fact,72 percent of people told financial firm Edward Jones that they had no idea what kinds of plans these are. A 529 savings plan allows you to set aside monies, pre-tax, for your children’s future college expenses. But I would advise you to save in other kinds of financial products as well.
Take comfort in the fact that all of this takes some time. Proverbs 21:5 observes, “The plans of the diligent lead to profit as surely as haste leads to poverty.”
When it comes to funding college, there is no silver bullet. Like buying your first home or setting up a business, it takes work, savings, and effort.
Originally posted at Christian Post June 3, 2016.
Recently, I was interviewed for an article in Fortune Magazine about a survey on “financial infidelity”, and they said this, “One in twenty people in the U.S. admit to having started secret bank accounts or credit cards without their partner’s knowledge.”
Another headline on the topic in The Guardian observed: “Cheating isn’t always sexual – many admit to hiding financial information from their partners, and a frank discussion may be the best way to approach the issue.” I don’t do this very often, but I agree with the media on this one!
When the Bible says that two become one in marriage, it acknowledges something that many of us understand painfully well – coming together is a process. Merging finances is one of the hardest things a couple does together. And in counseling couples, I have found that there does come a point at which couples can undermine their marriage with financial secrets.
There is no Bible verse that says a couple has to have joint checking or that the bills have to be written out by either the wife or the husband. But the ninth commandment, the one that tells people not to lie, is direct.
People who are hiding their finances are not usually trying to hide criminal activity or an affair. They are just embarrassed by their finances.
I highly recommend that a couple participate in a financial Bible study, to learn what God has to say about money. And every couple needs to sit down together to create a budget, where all accounts, debts and responsibilities are discussed openly.
Trust is the currency of greater value than any amount of money in a marriage. To get the conversation started, begin with the MoneyLife Indicator. It’s a free assessment that measures what a person believes about money and how those beliefs are actually put into practice. This is a great tool to get couples on the same page financially and spiritually.
To learn more about working together as a couple, click here and start with the MoneyLife Indicator today.
Ann and I have 4 boys. Three have passed the monumental age of 16 without getting their coveted driver’s license.
Yes, my wife and I delayed this process due to concerns for their safety with teen crash rates soaring higher than any other age group. But there is also a financial consideration.
Did you know that the average premium will increase by 80% when you add a teenager to your existing policy? That’s one of the reasons that our boys don’t get full privileges to drive until they are 18. Popular? No, but it has worked well in our family, teaching our boys lessons of patience, contentment and responsibility.
But if you already have a teen driver, take heart. There are ways to reduce those inflated premiums!
Your student’s good grades can payoff. Many insurance companies offer discounts for good students in high school and college. But you must be proactive in asking your insurance company about potential discounts.
Another way to decrease that premium could be by enrolling your teen in driver’s education or a driver-training course that will also give you additional peace of mind as your child drives off for the first time on his own.
And some companies offer personalized insurance rates if you or your teen have a device installed in your vehicle that monitors your actual driving. So the better you drive, the more you can save. Now that’s motivation to lay off the gas pedal!
And last, do the research before you let your teen buy a car. Check to see how a car’s safety equipment and general makeup affect your rates.
That teen driver may not be the only financial stress in your life. Many are dealing with overwhelming credit card debt. It can feel like you are drowning, but there is hope. Our friends at Christian Credit Counselors offer a helping hand in creating a debt management plan specifically for you.
Dear Chuck,
My spouse and I find that talking about our finances is so stressful, we would rather just avoid the topic altogether. We sort of go our separate ways, but try to avoid things like debt, and we agree on tithing. But I wonder if we would be doing better as a couple if we could really talk about money. How can we tackle an uncomfortable topic?
Married and Mum on Money Talks
Dear Married,
You are certainly not alone as millions of couples find talking about their finances a very difficult and painful topic. But it is a topic that cannot be avoided. You’ve heard the phrase “talk is cheap,” but the truth is NOT talking about money decisions can be very expensive when you’re married and trying to live happily ever after.
In fact, a study from Kansas State University found that arguments about money were the best indicator of divorce – more than conflicts over child rearing, sex, in-laws or any traditional areas of tension. I believe that being on the same page with your spouse on financial issues is one of the keys to a strong marriage.
Harmonious communication is key because your financial future depends on working together toward mutual goals. Since we all bring different beliefs, methodologies and goals into our marriage, a helpful first step is to seek to understand where your spouse stands on these issues.
Commit to learning and truly understanding each other’s financial philosophy. To help accomplish that Crown developed the MoneyLife Indicator, an assessment that can help you and your spouse clearly identify your financial perspectives. For instance, if one of you is a spender, and the other a saver, bringing those two value systems together can bring acceptance, unity and thus progress towards your goals. The free assessment is a way to start a dialog about what you each care about, keeping in mind that we should show love and respect as we learn of our differences.
My advice is to take the free assessment, then pick a time, convenient for you both, to just go over your reports together. Make this a time to encourage each other as you understand how God has made you to think and operate with money.
Next, commit to get organized and on top of all your financial information. Everyone needs to know where to access the budget, accounts, and important documents because you never know when you will need them. This is NOT a date night activity. Keep your romantic time free from financial conflict when you pick a time for a family financial meeting.
Then, learn to capitalize on your differences. Counseling couples, I’ve seen that in some marriages the husband is better with money, while in other marriages, it’s the wife. Ask which of you is good with deadlines, likes to keep track of important papers and is comfortable with details. And which of you is better at researching options or making a plan for the big picture. There is no right answer, so talk together about what you each like to do and what your skills are. Like in sports, some are good at offense while others excel at defense. It takes both to make a good team.
And don’t forget to make a plan for the tiebreaker. When you have conflict (and you will have conflict), a plan should be in place for how you make financial decisions. In my marriage, I have a higher tolerance for risk than my wife Ann, but I’ve learned over time that if she is uncomfortable about a decision, I need to wait until we can go forward in unity.
Ephesians 5 describes a marriage in which both husbands and wives consider the other, noting in verse 21, “Submit to one another out of reverence for Christ.”
Crown has a great outline for building a functional budget, which can be a good conversation starter, and remember that when you promised to stay together “for richer, for poorer” that life usually contains a bit of both. If you need expert help with debt, consider talking with financial professionals, like those at Christian Credit Counselors, a trusted not-for-profit that helps folks develop a debt management plan for eliminating expensive consumer debt.
And finally –– prepare for mistakes. No one makes the right choice every time, and even with a good plan, cars break down, accidents happen and investments fail. You’ll have a more peaceful marriage if you can forgive each other when the unexpected happens, stopping to pray together instead of making accusations about who is more to blame for the calamity. Remember to practice gentleness during the conversation. Proverbs 15:1 holds a wonderful promise: “A gentle answer turns away wrath, but a harsh word stirs up anger.”
I’m writing a book right now to encourage couples who feel broken by financial set backs. It is possible to unify and conquer these challenges. I have witnessed it over and over. Don’t let money divide this beautiful union that God has joined together.
It’s called skimming because thieves “skim” your credit or debit card information using a device that affixes to a card reader on something like an ATM machine or gas station pump. It blends in with the existing equipment well enough that unsuspecting consumers never notice it.
And it’s become a big problem. From January 1 to April 9, 2015, skimming at bank-owned ATMs increased 173.53% year over year, while growth at non-bank ATMs topped 316%, according to the 2015 FICO Card Alert Service. This type of theft accounts for billions in consumer losses, ATM Marketplace reports.
Here’s some helpful advice I found at Bankrate.com: “Skimming can occur almost anywhere, but consumers should be particularly aware at restaurants, ATMs and gas pumps,” says Kristi Arey, manager of fraud mitigation at Northwest Federal Credit Union in Herndon, Virginia.
While some thieves are caught, others are turning to increasingly high tech methods to carry out skimming, often making it difficult to detect and counter. Follow these guidelines to protect your plastic — and your funds — from skimmers.
“Identity thieves like to target places that are unattended”
“Identity thieves like to target places that are unattended,” says Paige Hanson, chief of identity education at LifeLock, an ID theft protection company in Tempe, Arizona. Scan the area before using your card. Criminals will often put a skimming device on gas pumps that are farthest from the store, or at an ATM that is not well lit.
Also study the card reader and give it a good tug or shake. “If the thieves have used an overlay, often times it’s only stuck on with temporary glue or double-sided tape,” she says.
At an ATM, look around for a place where a hidden camera may be lurking. Thieves often place one in a position where it can capture PIN information as you punch it in.
When you pay after dining in a restaurant, a worker might swipe your card through a skimming device, which records the information. The data might be used to access your account or make a counterfeit card.
Regardless of where you are, if anything looks different on the card reader, or appears to have any signs of tape or scratches on it, it could be a sign of tampering. “If it looks suspicious, don’t use it and notify authorities,” Arey says.
