Talking about money

With Alf Huebert, director of Stewardship Ministries

Alf Huebert, formerly a lawyer in Saskatoon, has been director of Stewardship Ministries of the Canadian MB Conference for 13 years. He, and the five provincial representatives of Stewardship Ministries, offer estate and will planning, RRSPs, saving programs and personal budget and money management counselling. Here he shares biblical wisdom and some sound advice about financial matters for young people, families and seniors.

What concerns about money do you encounter most often?

People’s main concern about money is how to manage it. Typically this arises when they discover that what they earn falls short of what they want to spend. In our society we are encouraged to address this by borrowing against our future earnings to pay for our present desires. This works up to a point, but all too often it results in a financial downward spiral.

Discussions that I have with people regarding money management are often propelled by a pressing need to recover from the results of ingrained spending habits fuelled by easy credit. The recovery is usually long and painful.

We can avoid much pain by recognizing the dangers of a haphazard financial approach, by setting financial goals that reflect God’s leading in our lives, and by ordering our affairs to effectively pursue those goals. I’m encouraged by the growing interest, particularly among young adults, in learning how to honour God in this area of life. Using money appropriately requires the same diligence, discipline and dedication as other aspects of the Christian life.

Does being a Christian make a difference?

A Christian’s attitudes toward wealth should differ from predominant attitudes in present North American society. By the way they deal with wealth, many North Americans demonstrate a “me first” mentality, anchored in the presumption that it all ends at death.

Mature Christians, on the other hand, take their attitudes toward wealth from the teachings of the Bible. Key principles that underpin the Christian understanding of money and its use are:

We hold wealth only as God’s managers, not as owners.
We must not put our trust in wealth, but in God.
We are to be generous with what we have.
We are to be diligent to use money wisely, converting it into that which has eternal value.

The challenge comes in making these biblical principles an integral part of our faith walk. How that looks specifically will vary for each of us. Discovering these specifics begins with our personal time with God, being immersed in God’s Word and open to the guidance of the Holy Spirit. Here we gain a sense of the direction we are to pursue.

Then we need to set faith goals. A faith goal is an objective toward which I believe God wants me to move.

The next step is to order our affairs to effectively pursue these goals. Each faith goal has a financial component. It is important to carry out our financial activities within the priorities dictated by our faith goals. The wealth entrusted to us will then be put to use in fulfilling God’s will in our lives, instead of merely satisfying our desires.

What advice about money management do you have for young people?

This is what I would say to youth and young adults:

Cultivate your relationship with God, who will give you wisdom beyond your years in every part of your life, including your finances.
Learn to live by the 10-10-80 rule: give 10%, save 10%, live on 80% of your income.
Use a budget and keep a record of your spending.
Don’t buy consumer goods with credit. If you can’t pay off your credit card balance in full every month, buy only with cash.
Never go into significant debt to buy a car. Stay clear of car leases. They trick you into thinking you can afford a new car when you can’t. Remember, a car is not an investment; it’s an expense.
Be very cautious about incurring significant debt in getting an education, especially if it is unlikely to open the door to a well-paying profession or occupation. If you are preparing for a ministry vocation, a large debt will burden you and limit your ministry opportunities, just at the time when you are most enthused and have the greatest energy and flexibility. Look for other ways to finance your education through scholarships, a financial mentor, or part-time work.

What would you say to a family that is stretched to the limit of their income, and feeling overwhelmed and guilty over competing demands, including the need to give to the church?

First, I would suggest that they seek help from a trusted financial counsellor to identify the reasons for their shortage, find practical ways to correct the problem, and get started in the required changes. Next, I would suggest that they meet for Christian fellowship and support with others in their church who are struggling with financial issues. People find it easier to resist as a group the pressure to live beyond their means. Friends can provide encouragement in making the hard lifestyle choices for a long-lasting solution.

I would also point out that Scripture places high priority on providing for our families (see 1 Timothy 5:8). Sometimes we experience periods of great financial difficulty, when the best we can do is to provide for the essential needs of our families. At such times we should give our families priority. Just as the church does not expect a member who is physically ill to contribute to church life in the way a healthy member would, so a member who is financially ill is not expected to give financially as if they were healthy. Paul’s words to the Corinthian church are helpful on this point: “Now finish the work, so that your eager willingness to do it may be matched by your completion of it, according to your means. For if the willingness is there, the gift is acceptable according to what one has, not according to what he does not have. Our desire is not that others might be relieved while you are hard pressed, but that there might be equality (2 Corinthians 8:11–13).

There are seasons in our lives, and some are more bountiful than others. There is something we can give in every season, but the nature of the gift will vary. Let’s not allow life’s cares to rob us of the joy of giving what we can.

What advice do you have for seniors and their families?

For those still working, it’s important to know how they are doing in preparing financially for retirement. The Canadian Retirement Income Calculator (available at the Government of Canada website) is a very helpful assessment tool. It calculates your projected retirement income, including Old Age Security and Canada Pension Plan payments, based on your present situation and projected savings and earnings. This information will indicate whether you need to make changes.

For those who have retired, there may be a need to supplement existing retirement income. This should be addressed when health and energy levels are still good. Part-time work that leaves adequate time for family and personal interests may be the best alternative.

Although all of us need to plan for our affairs in the event of death, seniors engage this task with more urgency. They have a good understanding of their potential estate and the circumstances of their family. How best to pass on an inheritance becomes crucial.

Care must be taken to maintain harmony within the family while treating everyone fairly. Usually, but not always, this is best done by treating all children the same. Potential difficulties can often be avoided by open and frank discussion with the children.

Often parents wish to make substantial gifts to ministry in their wills. This can be an opportunity for family involvement. If the children are part of the process, the gift becomes a family ministry project and prevents the children from feeling disinherited.

Seniors need to appoint trusted people to make financial and health care decisions for them when they are no longer able to do this for themselves. This requires the preparation of legal documents often referred to as Powers of Attorney and Health Care Directives. Since these documents are so important and powerful, they should be prepared by a practising lawyer or notary.

Another important question for seniors is, ”Where will I live in my retirement years?” While climate may be a consideration, the availability of family and friends is more important. To quote the late Hugh Arscott, “It is better to be cold in Saskatoon than to be lonely in Vancouver.” If relocating, be sure to check cost of living, and the availability of health care and affordable senior housing and care. Make your move early, while you have the capacity to become part of your new church and community.

I need to make one more point. Be wise in deciding when to move out of your house into a seniors complex. If you wait too long, it will be much harder to make the physical move and to adjust. Furthermore, sudden illness may force you to move quickly, with little chance to look for the kind of place you will enjoy.

On making a will

People don’t readily look after making their wills. We don’t like to look our mortality in the eye. However, if we are to be faithful managers of what God has given us, we need to take seriously our obligation to look after the people for whom God has made us responsible. Much tragedy and unnecessary cost can result for spouses and children when people die without wills.

Part of the Stewardship Ministries mandate is to help our people put wills in place that will meet the needs of their families. Many people also desire to provide gifts to Christian ministries within their estate plan.

—Alf Huebert

On choosing charities

People today are confronted with many requests for money. When choosing recipients for your charitable giving, start with those you know well and with which you already have a relationship.

Give first priority to your church. You already know and trust its leaders, and they are already accountable to you.

Give your next priority to Mennonite Brethren ministries and institutions. You already have access to information about what they do through literature, personal contacts and their websites.

Give to other Christian organizations with which you have contact. Perhaps they have ministered to you, or they may employ friends whose ministry you wish to support.

Consider giving to other worthy Christian or secular charities. Charities with which you are not personally familiar require some investigation. Ask:

If a Christian organization, is it communicating the true gospel of Jesus Christ?
Are people responding positively to the organization? Does its work change lives?
Does it have well-defined goals? Is it reaching them? Can it explain those goals to you?
Are the lives of its leaders consistent with scriptural principles?
Is there a standard of excellence and financial responsibility? Are its overhead costs reasonable?
Does the organization have a good reputation in the Christian community?

A giving budget

One good approach is to make a yearly giving budget. In December, make a budget for next year showing the names of the ministries you wish to support and the amounts to be given. Limit the number so that your contribution will be significant. Put in a line for “special requests” so you can respond to special situations immediately.

Save the appeals you receive during the year in a special file folder. When new organizations ask for support, tell them your giving budget is set for this year, but invite them to provide information so they can be considered for next year.

This approach lets you focus your giving into areas you feel called to support. It also allows you time to gather information about ministries. Sometimes a cause is very appealing, but fails to stand up well under closer investigation.

If you are getting on in years, you may want to show your giving plan to your children or to some other family member or friend. Their insight can be helpful in keeping a balance between your giving and meeting your needs and those of your family.