Dear Chuck,
I just accepted a new position and have the opportunity to enroll in a Health Savings Account (HSA). I’m not sure I should, so I wanted to get your perspective. My wife works part-time and we have a preschooler. We’re all in good health so no big expenses are expected.
Thanks,
Unsure About HSA
Dear Unsure,
Welcome to the world of navigating healthcare in America! Winston Churchill said, “Healthy citizens are the greatest asset any country can have.” And, healthcare is supposed to “help” us care for our health.
In our home, we work at staying healthy by being vigilant and proactive in taking care of ourselves by eating right, exercising, and researching everything we are told by medical professionals.
When it comes to covering the costs for healthcare expenses, I like the HSA option. I’m still learning, but am grateful we have this option here in America. HSA’s, or Health Savings Accounts, offer some great benefits for those who qualify. The fact that you are seeking counsel is commendable. Hopefully you are gathering the opinions of others as well.
Where there is no guidance, a people falls, but in an abundance of counselors there is safety. (Proverbs 11:14 ESV)
An HSA is a medical savings account for people covered under high-deductible health plans coupled with a tax-favored savings account. Contributions, up to a maximum amount, can be made to your account yearly with the money going toward qualified medical expenses, including dental, vision, and over-the-counter drugs. Money collected in the savings account can be used to pay your deductible. After the deductible is met, the insurance starts paying and any money left in the savings account earns interest and is yours to keep for future medical use.
Anyone who has a high-deductible health plan, is not enrolled in Medicare or the dependent on someone else’s tax return, qualifies for an HSA. Those who want to limit the upfront cost of healthcare while saving for future expenses find these appealing and doable because of the low monthly premiums that accompany high deductible plans.
Here are some reasons why:
The 2017 contribution limits are $6,750 for a family and $3,400 for an individual. Catch-up contributions for those 55 or older are limited to $1,000.
In the event of death, the HSA would be owned by your spouse, assuming she is the beneficiary of your estate.
HSAs are a means of automatic savings.
The money is deposited for a specific use and your family reaps the tax benefits. However, for those who expect high medical fees, plans with low deductibles and lower copays may be a better choice. Every family is different and must seek the knowledge of others, but ultimately the Lord, for the right decision.
“With God are wisdom and might; he has counsel and understanding…. With him are strength and sound wisdom.” Job 12:13, 16a ESV
I hope this is helpful and makes you a little less unsure about electing to participate! Stewarding well what He provides requires research and faithfulness on our part. But, being faithful in the little things over a lifetime adds up to a life well lived.
If you are wanting to go deeper in your journey to becoming a faithful steward, enroll in Crown’s online MoneyLife Personal Finance study. This 7-week course is completely self-paced and will help you gain a deeper understanding of what the Bible says about your money and practical ways to steward it well.
Originally published on the Christian Post July 28, 2017
Dear Chuck,
This year I’ll have three children in school, and I’m dreading the cost of uniforms and school supplies. They’re all at an age where they notice the things their friends have and feel embarrassed if their belongings aren’t quite as nice. I want to teach them about good stewardship, but I also want to give my kids nice things. What would you suggest?
Thanks,
Stuck on School Shopping
Dear Stuck,
I understand where you’re coming from! Back to school shopping is a tradition in America. I remember the excitement of shopping for new clothes, shoes, and a lunchbox with my parents. Breaking open a new box of crayons and using new pencils with perfect erasers was a great feeling.
But, shopping for school supplies today has become costly both financially and emotionally. Children feel peer pressure to have the “right” stuff. Some even fear bullying if they don’t. That puts mom and dad in a predicament.
The solution? Raise your children with so much love and acceptance that they can stand against the pressures of this world. Show them you love them and that Christ loves them even more. The sooner they learn this the more content they’ll be and appreciative for what you can provide.
The writer of Hebrews said, “Keep your life free from love of money, and be content with what you have, for he has said, “I will never leave you nor forsake you.”’(Hebrews 13:5 ESV) Children armed with this truth can withstand the cruelty of others and will find their self-worth in the Lord, not things. Teach them at a young age that they can always turn to you for support, especially when things get tough.
Granted, they still need school supplies, so let’s get practical. Teachers assemble their lists knowing what items work well. Certain glue or markers, for example, are requested for a reason. So, honor the teacher and bless your child by getting the correct supplies from the list without overspending.
Set a budget and resolve to have fun! Shopping wisely requires that you assemble your lists and keep them with you at all times. Plan ahead and avoid the back to school rush – which probably means you need to start shopping NOW. Try to allow yourself several days, if not weeks, to gather the items.
Naturally, you need to consider the cost of your time and gas money. Stop and shop when you’re near certain stores, or combine the trip with other errands.
Reuse any binders or folders that are in good shape from last year. There is absolutely nothing wrong with sending recycled rulers, compasses, protractors, and calculators. Have any left over new pens or pencils? Gather them together. Emphasize to your kids how wonderful it is that you can apply the saved money towards other supplies.
Check trusted sites and compare prices on your list before you purchase anything.
Thrift shops usually have a section of school and office supplies. This is a great place to search if you have time. While there, look for classic, well-made clothes. We managed to keep our boys in thrift shop khaki shorts and pants for many years.
Scour the school supply aisle and see what’s on sale. Stock up when spiral notebooks, paper, or other commonly used items are marked down. If you end up with more than your kids need, you can return them, save for later in the year, or give to others.
Sometimes these have really big sales on certain items. But other things may be pricier to make up for the price loss of the sale items. The key: know your prices!
Grandparents or close friends can be a big help. Let them know what you need and they may be able to check stores and sales for you. In fact, with a network of friends, you can commit to shop for each other when you find great deals.
Seek hand-me-downs and shop used uniform sales. Some schools even have uniform closets for items that have been donated. If shopping now, start with the basics and keep an eye out for items you will need as the year goes by. If you find a good deal on things that are too big, buy them and store until needed.
Older children can be trusted with the responsibility to purchase what they need. Encourage them to be frugal and reward them with a portion of the money saved.
If you have supplies you no longer need, pass them along to someone else or teachers who usually welcome extra supplies.
Education is a privilege that many families in the world only dream of. Yes, it costs something. But, you can be faithful in little things and teach your children along the way. Just remember to keep things in perspective when preparing for the new school year. Keep your eyes on the prize with a grateful heart.
As Paul taught Timothy, “But godliness with contentment is great gain, for we brought nothing into the world, and we cannot take anything out of the world.” (1 Timothy 6:6-7 ESV)
Those new backpacks, lunch bags, and washable markers won’t go with you. But, you can bless your children with them and thank God for all he provides. And, you can find joy in stewarding even little things well.
I also commend you for wanting to teach your children the lesson of stewardship from an early age. This is a lesson best learned in the home! Crown has a wonderful new resource – Raising Money Wise Kids – designed to help parents teach their children what the Bible says about money and how to live as faithful stewards. It’s full of timeless biblical wisdom and fun, practical activities and lessons. It’s the perfect way to finish your summer! Claim your copy now!
Originally posted on the Christian Post July 21, 2017
Dear Chuck,
I’m trying to pay my credit cards off but my income is very limited since I am nearing retirement. I have a 401(k) and a small property that I could sell. What would you recommend: sell the property, keep paying the minimum on the credit cards, or take money out of the 401(k)?
Confused
Dear Confused,
Unfortunately, millions in America are struggling with mounting credit card debt. It can be especially challenging during the retirement years. I don’t know how you got in this position, but I sympathize with you. The stress can be overwhelming. That’s why all references to borrowing in the Bible are negative. Most are warnings like, “The rich rules over the poor, and the borrower is the slave of the lender.” (Proverbs 22:7 ESV)
The good news is you have options! I don’t know the full story of your financial picture or what dollar amounts you’re dealing with, but I’ll give you some basic advice for each of the possible solutions you mentioned, plus some alternative options.
If you have equity to cover the debt on the property and all costs of sale, then this could be a very good option. If this is your primary place of residence then you’re going to have to determine where to live and the cost of moving.
This should be your last option. You’ll carry the debt for a longer period of time, the interest you pay over time will climb dramatically, and you’ll miss out on saving or investing that money. None of these results are pleasant. God’s Word warns against staying in debt for long periods of time because He knows that it restricts our giving capabilities and prevents us from being totally free. Try to avoid this, but if it’s your only option for a temporary period of time, it may suffice.
Withdrawing a sum to cover your debt sounds like a valid option, depending on your age. However, there are significant costs involved that will require you to take out more than just the credit card debt. There’s a penalty for early withdrawal and federal income tax. Plus, the early distribution may push you into a higher tax bracket that will hit you next year at tax time.
Borrowing against your 401(k) is a possibility. But, if you leave your job, the loan must typically be repaid within 60 days. If you get laid off, the amount outstanding is considered early withdrawal and you’ll be charged a withdrawal penalty and tax. Ouch!
It may be possible to navigate a different path than those you have proposed. Let’s look at some other options:
I strongly recommend that you use Crown’s Debt Snowball Calculator to get rid of all credit card debt. This method will help you get out of debt faster and save money on interest payments.
In addition, consider taking these steps to accelerate your progress:
Make lifestyle and income adjustments now.
Even though your income is very limited, it may be possible to adjust your standard of living to prepare for retirement. I have traveled the world and seen how people live outside of America. Most of us are just never forced to “think outside the box”. But thinking logically, not emotionally, is what you have to do when you get in this kind of bind.
Also consider all the ways you might increase your income. Can you take on a part-time job? Can you sell any possessions? Why not temporarily cut your 401(k) contributions and apply that money to the card each month? Apply any extra income towards the debt.
Look for ways to reduce spending. Stop buying…period. Cut cable, eating out, costly entertainment, new clothes, travel, and basically anything you don’t need for survival (at least until you get your credit cards paid off). You’ll soon get creative and find ways to stretch your pennies.
Record each dollar you spend and at the end of the week analyze where that money is going. Create a budget and recruit someone you trust to hold you accountable.
Rather than feeling deprived, I challenge you to find joy in each dollar you refuse to spend. A dollar a day adds up to $365 in one year. Ten dollars a day is $3,650. If you save $10 a day, and earn an extra $10 a day, it adds up to $20 a day, giving you $7,300 in just one year. You start applying that to debt and you’ll see remarkable results! Plus, if you establish an emergency fund along the way you won’t end up in the same boat again.
Set a target date that you want to have the debt eliminated. Post that goal and record your progress with every single payment. Celebrate with friends or family along the way!
It is best to go into retirement without debt of any kind. If the property you own has a mortgage, it may be best to sell it. If it’s an investment property and can earn you income through rent or by appreciating in value, it may be best to try to hang on to it. Either way, set a goal to pay off all debt before you exit the full-time workforce.
I hope you will never end up in this situation again. The sacrifices you make now will impact your future. Ask God to supply your needs and to give you the faith to trust Him in this trial. As James, the brother of Christ, declared:
“Count it all joy, my brothers, when you meet trials of various kinds, for you know that the testing of your faith produces steadfastness. And let steadfastness have its full effect, that you may be perfect and complete, lacking in nothing.” (James 1:2-4 ESV)
Originally posted on the Christian Post on July 14, 2017
Dear Chuck,
My wife and I would like to live off my income. The plan is for her to stay home after the birth of our first child. We bought a house and have one car paid for. We’ll have to adapt to the loss of her income, but we really believe she should be the primary caretaker of our children. Any advice?
Thanks,
From Two to One
Dear Two to One,
The transition to one income is admirable and one my wife, Ann, and I chose. I like to tell young people to never depend on two incomes. Rather live off one, preferably the husband’s, and save the other so you learn how to live below your means.
Good financial habits established from the initial days of marriage provide an easy transition to a one-income lifestyle. I’m not saying that was our case. In fact, we learned from our mistakes!
You’re showing maturity by seeking counsel. I recommend gleaning from the wisdom of godly couples who are already doing it, your parents, and your grandparents. You’ll be blessed. “Without counsel plans fail, but with many advisers they succeed.” (Proverbs 15:22 ESV)
Going from two incomes to one requires some preparation but is certainly manageable. Many couples today are burdened with such debt that both incomes are required. If you owe any money, it’s vital you establish a budget, pay down your debt, and learn to be content with what you have.
Money-Saving Basics
I want to offer you a number of ways to conserve money. Ann and I have implemented most of these through our years of making financial choices together. Some of these things may seem extreme and unnecessary in your case. But if you’re like me, the long-term benefit of having your wife at home will outweigh what you have to give up. Here goes….
Make sure your income covers all budgeted expenses. Does your job provide healthcare benefits? If not, determine the cost and add that to your monthly budget.
Think through how to save on baby costs now! All the cute patterns and fun advertisements can get you carried away quickly.
Do you really need two cars? If you can get by with one, perhaps you should sell the least valuable one and put the money in an emergency fund, savings or towards any remaining debt.
Eat at home. Start a grocery shopping date night (just don’t go when you’re hungry – trust me on that one!). If you’re a coffee drinker, brew it at home. You can save hundreds by avoiding coffee shops. Cook together and carry your lunch to work whenever you can.
Instead of paying to be entertained, never stop learning. Pick up a book rather than your phone or computer. Read the Bible aloud and memorize scripture together. Be the shepherd of your home, if you haven’t already taken on that role. Discuss worthy books. Listen to podcasts. Lead your family well.
Enjoy an occasional movie at home. Attend free concerts and community events. Hike, garden, ride bikes. Develop friendships with couples with the same goals and do life together. Play board games.
Serve the poor or handicapped– it will make you grateful and you’ll be challenged by the joy you’ll see in those with few earthly possessions.
Commit to save and invest your pay raises rather than increasing your lifestyle. You’ll be surprised in a decade or two how your investments grow just by steady plodding.
“The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.” (Proverbs 21:5 ESV)
Don’t spend hard earned money to accumulate things. The world will always try to convince you to buy more, bigger, better. Resist the temptation by setting and reviewing goals together. Remember, this world is not your home. “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. (Matthew 6:19-20 ESV)
Care for Your Wife
The joy of coming home will eventually wear off if she doesn’t have your support. Show your appreciation whenever you can because she is no longer being applauded in the marketplace. Leave room in the budget for her needs. She’s still working – just not getting paid.
Encourage her to spend time with a godly mentor. Many wives are not prepared to be helpmates for their husbands. According to Titus, “Older women are to teach what is good, and so train the young women to love their husbands and children, to be self-controlled, pure, working at home, kind, and submissive to their own husbands, that the word of God may not be reviled.” (Titus 2:3-5 ESV)
Remember Lydia in Acts 16? Many industrious women today find great satisfaction using their talents and contributing to the finances while working from home. The opportunities are endless. The topic is definitely worthy of discussion.
Trust Him
Finally, seek the Lord in all things. “Blessed is the man who trusts in the Lord, whose trust is the Lord.” (Jeremiah 17:7 ESV) Remember this and you WILL be a blessed man.
Being on the same page about your finances now will set you up for success later on. Many couples have found the Money Map to be a helpful guide to accomplishing this. It has practical steps for you to follow that are straight from Scripture and lead you on a path to finding financial freedom. It also makes your financial goals objective so it’s easier for you to agree on how to prioritize your budget. Make it a date night to review it and brainstorm ways to reach your goals!
Originally posted on the Christian Post, July 7, 2017
Dear Chuck,
My wife and I have been renting for five years and want to buy a home. Could you share any tips so we can make a wise decision?
Hopeful Homeowner
Dear Hopeful,
I commend you for seeking counsel in what’s typically the largest purchase of a lifetime. Assuming you’ve compared the costs of renting vs. buying to consider the impact to your budget, that you have a sizable down payment and money set aside for closing, maintenance, and emergencies, you may be ready to get out of renting. I just had a nephew go through a terrible experience with the purchase of his first home and it has motivated me to help others be fully informed about this decision. Here is a list of important questions and details to help you decide if you’re ready to buy a house.
If you plan to stay in your home more than three years then buying can be advantageous. This gives you some time to recapture your investment if the home appreciates in value. Be sure to consider the costs of repairs and updates on your new home. If you are stretching to make the purchase and will be broke when you move in, then it’s not the right time to buy.
You may have to show a two-year earnings history to get a loan if you’re self-employed or on straight commission. Lenders don’t like to see newly opened credit cards or recent debt, like car loans. And, moving money around 3 to 6 months before buying can negatively affect your credit profile. See if you qualify for any special grants or funding options.
In Proverbs 24:27 we’re told, “Prepare your work outside; get everything ready for yourself in the field, and after that build your house.” Establishing steady income and preparing prior to home ownership gives you the freedom to focus time and attention on those occupying your house instead of sweating how to pay your mortgage. This is what makes it a home.
Shop with resale in mind. A convenient location near good schools, green space, and shopping are important.
Avoid the biggest or best house on the block. Values typically rise as much as your neighbors’ homes, so the ugliest or smallest house has potential if it’s surrounded by nice homes and you can afford some remodeling.
Are prices increasing in the area you are considering? Multiple “for sales” in the same area is a red flag. Run from proposed projects like highways, mining, or landfills! Avoid existing cell towers, train tracks or highways.
Study the neighborhood at different times of the day. Visit with people out walking or biking. Meet the neighbors and seek the pros and cons of living there.
Do your homework to avoid getting upside down on your home value as compared to your mortgage. A good realtor can be invaluable.
There are many hidden, or unexpected, costs that come with buying a house. Do your research and don’t be in a rush to buy a house if you can’t adequately supply the cash for every fee.
Down payment: 20% minimum is ideal. Shop lenders for the best interest rates.
Private Mortgage Insurance (PMI): Protects the lender in case you default. Fees vary and are added to the monthly mortgage payment when 20% down payment is not made. Once you owe less than 78% of the purchase price, these payments can be dropped.
My advice: if you think you will need PMI, then you are not ready to buy a house.
Closing costs: Are 2-5% of the overall price of the home and include multiple fees. Sometimes sellers will negotiate and offer to pay all, or a portion of, the closing costs. Get a total estimate. Several days before closing, the lender will provide a closing disclosure listing all costs. Study it carefully, checking for errors. Don’t go to closing and get surprised!
Home Inspection fee: Goes to a reputable inspector to provide a detailed home inspection, documenting the status and condition of every part of the house. This usually costs several hundred dollars but can save you thousands. Hire one with years of experience – I highly recommend that you (the Buyer) hire the inspector and not the Seller! Do your research before meeting with the inspector and ask as many questions as you need. They should send you a detailed report afterward with pictures and an outline of everything they looked at, potential problems, and the current condition of every part of the house.
Repairs: If the inspection identifies problems, you and the Seller must decide who will pay for the repairs. A final walk-through should occur the day prior to closing. With furniture, paintings and rugs removed, check for cracks in walls and floors plus stains in flooring and any new water spots in the ceiling. A heavy storm prior to closing gives the opportunity to look for tree damage and water pooling in the yard or around the house.
What stays: There’s a possibility you and the Seller negotiated for a grill, curtains, a washer, and dryer, etc. During the final walk-through, check to make sure anything in the contract is present in the house. Any light fixtures, mirrors, window treatments, or appliances the Seller plans to remove must be recorded in the contract.
Moving: Analyze your options of generous friends, truck rental or hiring a company. You can get moving boxes for free at many restaurants and stores that would otherwise throw them away. Don’t be embarrassed to call and ask for them! Uhaul also offers used boxes at a discounted price. Be resourceful with your packing – towels and washcloths can replace packing paper around fragile items.
Remodeling and decorating: Budget adequately and exercise self-control. This is something that comes with time.
Mortgage: Half a percentage point on your interest rate is worth thousands of dollars over the life of the mortgage. An escrow account may be established for monthly payments to cover taxes, insurance, and other annual fees.
Property taxes: Are tied to your home’s value to pay for services like schools, fire, and police. Costs vary depending on location with potential increases over the life of ownership.
Maintenance: Set aside a minimum of 1% of the home’s value for yearly maintenance influenced by age, condition, and location of the home.
Homeowners Association fees: Are based on amenities in your neighborhood. If your neighborhood has an HOA, know how much it’ll cost you and when the fees are due. Check out any issues related to the HOA before buying.
Insurance: Is required for a mortgage and location dictates price. Flood-risk neighborhoods cost more and flood insurance is based on the elevation of the house. A security system, certain repairs or improvements, and location near good fire departments lower costs.
Title insurance: Protects you and the lender if someone later claims title and ownership of the house.
Laborers: Include fees like pest control, landscape and pool maintenance, snow blowing, etc.
Utilities: Electricity, natural gas, heating/cooling, water, and trash service vary by location. It is a good idea to ask the Seller for the past 12 months of billing statements for these items to help with your budget.
Commute: Costs may increase or decrease. Simulate a prime time driving scenario before signing the contract.
Get a copy of the covenants for your new neighborhood and read thoroughly. Seek answers to anything you don’t understand. If you ever want or need to rent out the home, make sure it’s allowed. Some neighborhoods have strict rules about roofs, landscape, outbuildings, siding, exterior paint, window coverings, etc.
Understand the contract before signing. Take your time to read it through and ask questions. If the seller, broker or agent won’t answer questions, walk away. Don’t close unless tax liens, unpaid HOA dues, or other title defects are fixed.
Consider your future income, expenses, and family needs. Are you dependent on your spouse’s income? Are you ready for the responsibility of home ownership?
This is an exciting time and I understand why you are hopeful! It is important to pray with your spouse and ask the Lord to lead you to the right decision together and remember: By wisdom a house is built, and by understanding it is established; by knowledge the rooms are filled with all precious and pleasant riches. (Proverbs 24:3-4)
For more practical help with your finances, download the Money Map. It’s a step-by-step guide that will help you find financial freedom and reach your goals. In fact, buying a house is one of the steps! Download your copy for free here.
Originally published on the Christian Post June 23, 2017
Dear Chuck,
An acquaintance at work recently shared the trauma a close friend experienced planning a sudden funeral then discovering criminals had accessed his deceased family member’s bank accounts. How can we protect ourselves 
and prepare for the inevitable?
Concerned
Dear Concerned,
It’s hard to believe, but there are scammers who prey on the vulnerability of those grieving the death of a loved one. To protect your family members and others facing the same scenario, I’ve gathered some helpful tips on a variety of issues.
Guard Personal Information
Criminals are experts at retrieving personal information from hospitals and funeral homes. They study published obituaries.
So, when writing an obituary, do not give the decedent’s birthdate, address, mother’s maiden name or any other information thieves can use to their advantage. Unfortunately, criminals can purchase a Social Security number online for as little as $10, and with little information, access accounts, open new ones, file taxes and even collect refunds. Even family members, favorite pets, and memberships in organizations are pieces of info they can piece together to hack your accounts. Shocking, but true! The less information you give, the better you are protected.
Guard Against Imposters
Criminals may also pose as Debt Collectors, calling and threatening legal action if you don’t pay fees they say you owe to release important documents. They sound legitimate and are armed with information, but you should never, ever make payments or release information over the phone. Ask for their name, phone number, and company so you can return the call. They usually hang up. If you suspect this is a legitimate debt, you should still wait and call them back after getting legal advice, because you may not be responsible for the debt.
Thieves may pose as Insurance Agents claiming a loved one left you a large insurance policy. Their ploy is to wire the money AFTER you pay the final premium payment. Some pose as lawyers, claiming you need to pay a fee to process the inheritance. ALWAYS ask for details and refuse to pay fees. Sometimes a secret inheritance or policies are left, just be discerning.
People have also been targeted by fake IRS Agents who demand information by phone or email. But the IRS does not initiate contact with taxpayers to request personal information or call with threats of lawsuits or arrests. Block and delete these numbers if they continue.
Sometimes long lost relatives attend funerals – some may be legitimate but others may be posing. Screen them thoroughly, confirm identity with other relatives, and ask imposters to leave. If they insist they are owed inheritance, money, or property, call your attorney.
Funeral and Burial Pricing
A federal regulation called the Funeral Rule protects consumers by requiring funeral businesses to give clear pricing information. A general price list helps people choose only what they want to purchase. Funeral homes cannot require services that are optional by law, like embalming. You should not be charged extra if you choose to buy a less expensive casket elsewhere.
Ask for any legal cemetery or crematory requirements. Don’t give in to sales pressure, manipulation, or guilt. Costs add up quickly, so take a discerning friend or relative with you to help you make decisions and stay within budget.
Request that someone stay in your home during the service. Burglars can easily find out funeral arrangements and your home address.
Who to Notify
Get at least 12 certified copies of the death certificate. Provide copies to the IRS, VA, DMV, Equifax, Experian, Trans Union, banks, brokerages, credit card and mortgage companies, insurance firms, etc. Use certified mail and keep track of where certificates are sent. Immigration agencies, public libraries, fitness clubs, and private organizations will need to be notified as well. Cancel the driver’s license to prevent fraudulent duplicates from being issued and used in criminal activity.
Request “deceased alert” on the decedent’s credit report. Arrange with each credit bureau to get a copy of his/her credit report to review lists of accounts and credit card activity. Check the credit report in six months for any suspicious activity and notify the police if anything looks odd.
Documents proving you’re the spouse or estate executor will be needed if someone asks you to demonstrate authority in representing the deceased’s estate. This is where a binder of all necessary paperwork needed upon death is a gift to your family.
File your loved one’s tax returns for the year in which they died and as early as possible.
Surviving Spouse’s Checklist
Crown and Bare Wealth Advisors have prepared a checklist of actions we advise for the first 48 hours and the following weeks of a loved one’s passing. It’s an easy guide to follow for a very difficult and emotional time.
Remember – you can be a wise steward when facing life or death. Nothing can separate you from His love. David wrote in Psalm 23: Even though I walk through the valley of the shadow of death, I will fear no evil, for you are with me.
Originally published on the Christian Post, June 16, 2017
To #Ask Chuck @AskCrown your own question, click here:
Chuck Bentley is the CEO of Crown, the largest Christian financial ministry in the world, founded by the late, Larry Burkett. He is an author, host of My MoneyLife, a daily radio feature, and a columnist for the Christian Post and a well-known speaker.
Dear Chuck,
I’ve been following Crown Financial Ministries for years and appreciate your advice on avoiding debt and putting God first through tithing, but is there ever a time when you SHOULD spend money?
Just Curious
Dear Curious,
The short answer to your question is YES. Let me offer two times when it is good and right to spend money.
The most appropriate time to spend money is when it meets the needs of your family. We are admonished in Scripture to take care of our family. They are our priority in spending. We should never feel guilty for spending money that is used to take care of our spouse and children.
The next most appropriate time to spend money is when it can save all kinds of expensive problems later. It is particularly important to spend a little money to save in your own home. With spring in the air, this is the perfect time to do some home maintenance to take care of what is most likely your biggest investment.
Here are a few tips for heading off painfully expensive issues:
Did you know that water damage from washing machines causes one of the TOP FIVE home insurance claims? Floodchek.com notes, “Of all water damage claims related to washing machines, more than half – nearly 55% – are from water supply hoses that leaked or burst. And these claims are costly, with the average claim running more than $6,000.” When you consider that a washing machine hose can cost $10 to $30, clearly regular replacement is worth your investment. One more tip: take a look at whether you have a recessed washer box on your washing machine that allows you to turn off the water. If you do, be sure to turn off the water when your machine is not in use or when you travel.
Many of us don’t have the right kind of weather-proofing electrical outlet covers on outside power sources. A bubble cover better protects your electrical system and costs generally less than $20. Water in your system can lead to a fire, damage to your circuits, or damage to your wiring … all costly fixes. When is the last time you checked the condition of your outlets?
With all the spring showers, it can quickly become obvious that your yard is soggy or your basement is taking on water. Your solution may simply be a French drain, installed outside your house to provide better drainage. You will want to talk with a landscaper or professional installer about the project, as it involves digging a trench and laying special drains. A French drain 30 to 50 feet long could average $750 to $1,250 to install. But consider the high cost of a basement flood or damage to the foundation. A light clean up could run $1,000, and if mold or mildew sets in, costs can run from $3,000 to as much as $10,000. And none of those costs include what you might spend to replace drywall, carpet, or your possessions.
Many of us enjoy waking to the sounds of birds, heralding spring’s return, but just where are those feathered friends nesting? Check your air vents that expel air or draw it into your house, making sure they are not blocked or a home to birds. Should birds nest in your home’s vents, the cost of removal can include an exterminator followed by the need to replace portions of your air venting system, walls, or ceilings. You can prevent this problem with vent screens that cost very little. When birds nested in an air vent from the master bathroom owned by friends of mine, at first it seemed charming. But several of the baby birds died in the nest, deep in the ceiling of the bathroom. The bathroom ceiling had to be partially opened and all the venting replaced, resulting in about $3,000 in repairs. When the project was finished, the new venting was capped with a $3 screen.
It’s not uncommon for labor to be about half the cost of a project. Consider that on a minor bathroom remodel, that could easily be up to $10,000. Spring can be a good time to check out free classes at home improvement stores to learn whether you can lay your own bathroom tile and swap out leaky faucets (that are literally spending money with every drip). Also, check out YouTube for DIY instruction videos!
The need to take care of our property is as old as mankind. In Genesis 2:15 we read, “The Lord God took the man and put him in the Garden of Eden to work it and keep it.” To keep your house in order, home improvement expert Bob Vila recommends a spring home maintenance checklist, which can be a fun family weekend project. Also, make it a priority to save $1,000. This is the first step on the Money Map, which helps you achieve financial milestones and learn biblical principles. It’s a practical guide to help you take control of your finances and find freedom. With a little effort, you can save a lot of money and protect the home that God has given you.
Originally posted on the Christian Post April 21, 2017.
Dear Chuck,
I’m losing sleep over money worries. Seriously. Sometimes the stress of figuring out how to balance debt, bills and life is almost more than I can stand. Where do I begin?
Sleepless in America
Dear Sleepless,
I know how you feel. I was once there myself during a time when I had excessive debt and I was laid off from my job. Financial stress is a serious challenge for many of us.
In counseling individuals, couples, and church communities about money for many years, I’ve seen that money worries can be acancer, distracting us from what God wants us to accomplish in life. And so many of us are losing the joy of life due to this anxiety. A recent story in MarketWatch reported that “Americans are more stressed than ever — and for most of them, their bank accounts are to blame.”
Over 6 in 10 Americans (62 percent) reported that they were losing sleep because of money worries, according to a study fromCreditCards.com. While that is a slight improvement from the 69 percent who reported they lost sleep because of money worries in 2009, that’s still an astronomical number of Americans extremely stressed about money. And we are worried about everything – health care, insurance, retirement, education, mortgages, cars, and credit cards.
Financial stress is also one of the leading factors contributing to the high suicide rates of American soldiers.
And the most stressed of all? Generation-Xers and Millennials, who said that student loan debt keeps them up at night.
It is vital for each of us to get control of our emotions and our finances so that the potential that God designed in all of us is not lost to the distraction of worry and fear.
Jesus said in Matthew 6:31-34: “So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ For the pagans run after all these things, and your heavenly Father knows that you need them. But seek first his kingdom and his righteousness, and all these things will be given to you as well. Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.”
Likewise, 2 Timothy 1:7 reminds us “for God did not give us a spirit of fear, but of power, and of love, and of a sound mind.”
So let’s employ these principles to stop worrying, gain sound minds, and get a handle on our financial stress.
Never forget that you are not alone and that God himself understands our needs. In Luke 12:27-28 we read: “Consider how the wild flowers grow. They do not labor or spin. Yet I tell you, not even Solomon in all his splendor was dressed like one of these. If that is how God clothes the grass of the field, which is here today, and tomorrow is thrown into the fire, how much more will he clothe you…?” Our founder, the late Larry Burkett famously stated, “Do you trust God or just say that you trust God?” Study God’s Word and seek to apply His principles to your everyday life.
You’re never going to get ahead without a plan, which must begin with an assessment of your assets, your debts, your bills and obligations. You must build a functional budget before you can set goals, knowing where your needs are and with what you have to work. You can learn more about how to get your finances under control with Crown’s Money Map. Getting on a budget will help relieve stress immediately to ensure you stop overspending.
As you already know, debt kills opportunity as all your resources must cover obligations. Begin tackling debt with the snowball method, paying off the smallest debt first and then rolling those resources into the next largest obligations. Crown has a free calculator to help you establish a plan of attack and calculate how long it will take to pay it all off. You may also consider getting in touch with Christian Credit Counselors. As a non-profit credit counseling agency, they have a team of dedicated counselors that can help you avoid bankruptcy, debt settlement scams, and quick fixes that ruin credit.
The reason why so many of us have credit card debt is because we never had savings in reserve. One of your first goals must be to save $1,000 to have in case of emergencies. You may be surprised to learn 6 in 10 Americans don’t have even $500 in savings. Prepare for that rainy day (which will certainly come) by saving first $1,000 and then working your way up to a year’s-worth of living expenses.
Too many people think that giving is something you do only if all your other financial goals are met. But in fact, in giving, we acknowledge that God is the source of our strength, our skill, our health, our resources, and our very lives. Proverbs 3:9-10 reminds us that putting God first leads to blessing, commanding: “Honor the LORD with your wealth, with the first fruits of all your crops; then your barns will be filled to overflowing, and your vats will brim over with new wine.” Make giving your top financially priority and most of your financial problems will be worked out accordingly.
My hope for you and all who are spending sleepless nights worried over money is that through this struggle, you will build a closer relationship with God himself, the only one who can truly help you. Remember Philippians 4:6-7: “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.”
If you’re looking for a little daily encouragement, please accept this gift from Crown. You can receive practical principles and daily encouragement from God’s Word in the God is Faithful devotional, sent straight to your inbox to consider what God has to say about our daily life.
Originally posted on the Christian Post on May 19
Dear Chuck,
My wife and I have a 401(k) savings plan, and we are thinking of pulling out some of the money for home improvements. Our house is one of our major life investments, but do you think that is a good plan? It’s so hard to save up the resources recommended for retirement, but those resources could be useful today.
Rethinking Resources
Dear Resources,
In America today, 401(k) savings plans represent the way that most of us are trying to prepare for our future retirement. At Crown, we advise that you save 5-10% of your income for the future because you don’t know what you will need to survive. But as that nest egg grows, it can be very tempting to dip into those resources. And too many of us are giving in to that temptation.
A recent report in the Wall Street Journal observed, “Tapping or pocketing retirement funds early, known in the industry as leakage, threatens to reduce the wealth in U.S. retirement accounts by about 25 percent when the lost annual savings are compounded over 30 years, according to an analysis by economists at Boston College’s Center for Retirement Research.”
Although I don’t know your actual age, in my view, it is a mistake to dip into that nest egg for predictable projects like home improvements or a car purchase. By pulling out your money today, you are assuming that in the future, you won’t have similar financial needs to address. And you are literally reducing your available funds because when you withdraw money before age 59-and-a-half, you may need to pay taxes AND pay a 10 percent penalty. That kind of penalty means that no matter the project, you just added a hefty fee to the bottom line. It’s better to handle today’s issues while you are still earning. Of course, your age andthe complete financial picture could alter my counsel but I want to offer some general advice for retirement savings accounts.
But leakage is only one huge mistake that people make when it comes to 401(k) accounts. Top mistakes people make with their savings account include:
Especially as fewer companies offer pensions to care for their employees’ retirement, it’s important to start saving as soon as you are working. Even insects know to save when times are good. “Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores provisions in summer and gathers its food at harvest.” (Proverbs 6:6-8 NIV)
Many companies will match some of your savings with company dollars. If you don’t sign up, you’re missing a significant opportunity for getting ahead. “According to data from the Investment Company Institute, about three-quarters of 401(k) plans, covering 90 percent of Americans, have some form of employer matching policy,” so check with your human resources department to see whether you have that option. Put in your company’s 401(k) any amount needed to get the match … they are likely doubling your savings.
Too many people enroll in a 401(k) and forget about it. But it’s important to take an active role in understanding whether your investment is diversified (spread across multiple investments so that no one loss wipes you out) and to know what kind of fees you are paying. The costs may be higher than you think. “(T)he Center for American Progress estimates that the typical American worker who begins earning a median salary of $30,502 at age 25 and saves 5 percent of salary into a 401(k) is expected to lose a total of $138,336 in lifetime 401(k) fees.” Give your 401(k) a checkup with a reputable financial planner to ensure its good health.
Too many of us have not gotten our accounts and affairs in order in case death comes unexpectedly. All your hard work in saving in a 401(k) will be lost if your heirs don’t know about it. In fact, states, federal agencies, and other organizations are holding more than $50 BILLION in unclaimed cash and benefits. Take the time to read through Crown’s outline for an estate plan and get organized so that all your accounts can be accessed when the time is right.
A strong financial portfolio is built a little every day. Proverbs 13:11 makes it clear, “Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.” You can learn more about how to manage your finances with Crown’s Money Map.
And if you’re looking for a little encouragement in the year ahead, please accept this gift from Crown. You can receive practical principles and daily encouragement from God’s Word in the God is Faithful devotional, sent straight to your inbox to consider what God has to say about our daily life.
Originally posted on the Christian Post May 5, 2017.
Originally posted on the Christian Post on April 28
Dear Chuck,
I was raised in a home in which my parents talked very little about money, and my husband’s family didn’t say much about it either. For our parents, money was a private matter. I feel like that led to some financial mistakes when I got out on my own, through some trial and error. My husband and I want to do things differently with our children. Where do we begin? And how should we change our instruction as our kids grow up?
Puzzled Parents
Dear Parents,
Thanks for the great question, one that all parents should consider. The truth is, most of us will experience financial difficulties and I don’t know of a parent that does not hope that our kids can avoid the 
mistakes we have made. I’ve found that too few of us are open with our children about the kinds of problems families face as well as the kinds of mistakes that can be made. This isn’t about going through your checkbook with a child, but about being willing to discuss the good and the bad. In Deuteronomy 11, God advises the Israelites to talk about both, saying in verse 2, “Remember today that your children were not the ones who saw and experienced the discipline of the Lord your God.” Most of us have learned some lessons the hard way!
The Wall Street Journal reports that Americans are “notoriously weak” when it comes to financial literacy. The Council for Economic Education’s 2016 Survey of the States reports that only 22 states require high schools to offer a personal finance course, and only 17 require students to take it. In my view, so-called “financial literacy” is insufficient knowledge for Christian children. When it comes to their finances, they need biblical principles combined with practical skills. It’s a good idea to ask high school students to look at a rudimentary budget, but if you’ve waited that long to begin teaching them about finances, you’ve waited too long. Parents need to train up a child in the way he or she should go from the early days.
Still, you may be surprised to learn that a life lesson we teach toddlers is a money lesson many adults need to review.
LESSON ONE: Toddlers. Learn delayed gratification. Toddlers (and their older siblings and parents) can learn that you must often wait before getting what you want AND that reward follows work. Requiring your children to pick up their toys before they get a treat is a life skill in the making. As your young children ask for things, talk with them about why the answer is “no”. For example, a young child who wants pizza for dinner can be told that Friday is pizza night, and that’s what you budgeted for. This illustrates the financial construct of planning, waiting, and reward. They certainly understand anticipation, a plan, and the word “no.”
LESSON TWO: Early Elementary years. Learn the key elements of budgeting. At the heart of every well-rounded budget are three goals: saving, giving, and spending. At Crown we encourage parents to give children an allowance for work around the home. When my children were young, my wife Ann got a three-ring binder for our boys with three pouches in it (labeled Saving, Giving, Spending) to show them how money must be divided up as you earn it. The lifetime discipline of setting aside 10 percent of all monies earned for the work of the Lord will pay an eternal dividend. And as a child sees their saving grow, they can participate in making plans, another good discipline. While spending may seem like the easy part, even shopping can be taught as a skill as you help your child think about what they really want and are willing to work toward. For children ages 5 to 7, Crown has a simple book, The ABC Handling Money Student Workbook, filled with adventures like saving for a puppy.
LESSON THREE: Middle and High School years. Learn the realities of big purchases. As your children move toward adulthood, it’s natural that they want more expensive items like cars, entertainment, and trendy clothes. At this age, teaching wise consumer skills can help them achieve what they really want long term. Car purchases are an excellent teaching tool, as the cost of transportation is so much more than the cost of gas. Understanding what to look for in insurance, or how much money they are ultimately spending with a car is important before taking on new challenges. Many people enjoy travel as a family, which can be all the more sweet as you plan a trip with your older children, who can better appreciate the choices you make in hotels, flights, or entertainment as they consider the costs and weigh options. A vacation is a great tool for learning about “opportunity costs,” those things we lose when we gain something else. Having learned how to accept a no, now kids need to know the cost of yes.
LESSON FOUR: College Age. Learn the dangers of debt. Proverbs 22:7 warns that the borrower is slave to the lender. You can talk about avoiding debt and waiting for reward through your children’s entire lives, but as your teenagers reach adulthood, this is a good time to explain to them why they need to shred all those credit card applications that are targeted for college-aged kids. Especially as your children prepare to leave home, talk about the traps creditors set for them. In today’s economy, no talk about college is complete without a discussion of how to avoid student loan debt. And if you need to set a living example of what it means to live free of credit card debt, get in touch with our partners atChristian Credit Counselors. You may want to include resources like these in your conversations with your children so they are fully equipped to live a financially free life, even if they make mistakes.
LESSON FIVE: Learn to work together teaching your children. Personal-finance expert and author of Making Your Child a “Money Genius,” Beth Kobliner encourages parents to talk with kids about the big picture principles at stake … but not about every detail. In an interview with the Wall Street Journal she observed, “Children don’t need to know how much you earn or how much is in your 401(k)… And don’t fight about money in front of your kids. My dad always said: “Parents should keep a unified front!” I couldn’t agree more.
A fun tool for working through financial principles can be found at Crown’s Money Map. And if you’re looking for a little encouragement in the year ahead, you can receive practical principles and daily encouragement from God’s Word in the God is Faithful devotional, sent straight to your inbox to consider what God has to say about our daily life.
