Manage Your Money God’s Way - We are Called to Be Good Stewards, How to Improve Your Finances, and Teaching Your Children the Value of Savings

November 20, 2016

We are called to be stewards of God’s blessings and we can do this by improving our finances and teaching our children the value of saving. Join Compass Catholic on Breadbox Media as we discuss these topics that are vital to your financial future.

Segments 1 & 2: We are called to be Stewards

The concept of stewardship can be interpreted as a call to give more money to the church.  But a real steward knows that everything we have is a gift from God, and we are responsible for managing his gifts in a way that is pleasing to him. Stewardship is a lifestyle not a program to raise money.

Segment 3: How to Improve Your Finances

Getting your finances under control may seem like an impossible task, so here are several simple steps to get you started:

1. Start an emergency fund - Begin with a goal of $1,000, building it to 3 then 6 then 12 months of income.

2. Create a financial plan - look at your financial goals, create a budget, and figure out how much money you can afford to save and invest after you’ve paid all your bills.

3. Pay off your debt – your budget needs to include a plan to repay all outstanding debts.
4. Take advantage of a retirement plan - be sure to maximize employer matches.

5. Start saving for your kids’ college - start a 529 and encourage relatives to contribute in lieu of birthday and holiday gifts.

6. Buy term life insurance - to protect your family’s financial future, especially if you have young children or a mortgage to pay.

Segment 4: Teaching Your Children the Value of Saving

Many parents don’t teach their children to save because the parents don’t know the value of compound interest.  

Here’s a great example: Danielle saves $1,000 per year for 8 years starting at age 21.  Matt saves $1,000 per year for 37 years starting at age 29.  They both earn 7% on their investment.

When they reach age 65, Danielle (who only saved $8,000 total) had about $64,000 more than Matt who saved $37,000.

This is the magic of compound interest.

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