- - - FROM THE DESK OF JEREMY WALKER - - -

Teaching Our Children About Financial Gain and Safety

(3 Min. 25 Sec. Reading Time)

I was having a discussion on the subject of bank loans and financial advice for our children with someone on social media recently. I was asked to share my point of view on the subjects we were discussing. The following is the advice that I gave...

The first principle I believe is important for Christians to hold is that the blessing of financial wealth is not an economic issue but a religious issue.

Financial gain and safety come from obedience to God and Him causing us to increase. Obeying God's commands will cause a person to live successfully in any economic system. Most, if not all, of God's commandments can be tied to prosperity or poverty. Keeping or neglecting to keep God's commandments equally incurs the blessing of God upon our work or suffering from being cursed by God for our disobedience.

In short, to learn how to make, keep, and increase one's wealth, our children need to learn the commandments of God rather than be taught someone else's ideas of strategic economic planning, etc.

Having said that, here are a few essential points that sum up my position:
1. Teach my children God's commandments and how to apply them to their lives in various areas.

2. Teach them a trade that allows them to earn income.

3. Teach them how to save, tithe, and spend money. (50% goes into a savings account, which they cannot touch until they are 18. 10% is tithed to God. 40% goes into a checking account where they can learn to spend wisely.)

4. Teach them a savings goal for marriage for up to 3 years of wages minus taxes. Both boys and girls. (This is not a dowry per se, but based on that concept that ensures that they understand the financial aspects of a family and show the character to provide for one.)

5. Teach them to make purchases only when they have the money to pay the full amount for the object they are purchasing. (No debt living.)

6. Teach them to get and use credit cards early to "build credit," which will be important in the future. (Purchases made with a CC are paid off every month, so no interest is paid, and money is lost.)

7. Teach them to purchase their first vehicle. (It should not be new, but it should be in very good shape and well within their budget to pay off in full at the time of purchase.)

8. Teach them to avoid wasteful purchases. (This will allow them to build both savings and checking together.)

9. At 18, give them full access to the savings that they have been building for years and instruct them on how to keep this a good habit.

10. Pray that they are wise enough to continue living on the path they have been taught.

11. I will have my children live in my home until they marry and move on. (This will allow them time to save, save, save.)

12. Provide guidance about home loans and how they actually work. Also, guide buying something that will fit a large family (4 or 5 bedrooms and two bathrooms).

13. Help them make a loan amortization schedule that shows them how long it would take to pay off a loan based on the interest amount, payments made each month, and how much money is lost due to interest over time. (Most people have no idea what this looks like. It's staggering.)

14. Advise that a loan of any amount be paid off as quickly as possible to save money in interest payments. (A home purchase is the only time extended debt is unavoidable. When 60% of what you earn is stolen from you, and housing costs are artificially ridiculous, you must learn to live where you find yourself successfully.)

15. I do not advise renting a home on anything but a very short term. (However, there is absolutely nothing wrong with renting a home your whole life. A rented home can never be owned, nor can it ever be passed on.)

Christians are called to be freemen, and this means we must live debt-free to the extent that we can in this world.
Personal home and business property purchases are the only two times I see extended debt as unavoidable.

I have followed the above myself with my family, so I know that it is not only good advice but also possible. I have given similar advice to other families, and they have done the same as I have, and it has worked for them as well.

Christians can learn to live without debt, purchase and own homes, have large families with many children, and live as free men.

Also, once Christians can learn to do this, it will allow them to save up for their children's children and build family wealth that starts to give out loans to their children and grandchildren rather than them going to a bank. The children would then pay the loan bank with interest, and the family bank would not only continue but would have more funds than before ready for use by another. (A set interest rate lower than the general bank amount can be set.)

Lastly, interest on loans is not forbidden by God. However, interest on loans given to those in hardship is forbidden. We are forbidden from taking financial advantage of those in hardship.