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THE FAMILY FINANCIAL WORKBOOK

Moody Press

Chapter One

Because the urgent often crowds out the important, sometimes we don't have time to read and absorb the very information we need. If you like headlines and bullet points, then this quick summary is for you. It is not an exact outline of this workbook, but it provides a quick reference of key points. After finishing the workbook, continue to use this chapter as a reminder.

1. Principles dealing with home finances

a. Set your goals-with your family. b. Use a written budget. c. Provide for the Lord's work first. d. Limit credit. e. Think before buying. f. Practice saving money regularly. g. Get out of debt. h. Avoid speculative investments. i. Avoid indulgences and lavishness. j. Seek good Christian counsel. k. Stick to your plans.

2. Purpose of a budget

a. To define income versus expenses. b. To detect problem areas. c. To provide a written plan for spending and saving. d. To aid in communication and accountability. e. To schedule money in and out of the home.

3. What a budget will do

a. Help you visualize your goals. b. Provide a written point of reference for husband and wife. c. Help family communications. d. Provide a written reminder. e. Reflect your spending habits.

4. What a budget will not do

a. Solve all your immediate problems. b. Make you use it. c. Eliminate all decision making. d. Balance by itself.

5. Getting started with your budget

a. Understand your current financial position. Use a thirty-day expense diary or notebook. Use a checking account ledger. List all debts with amount due, monthly payment, due date, and interest rate.

b. Creating a family budget Calculate income. Calculate fixed expenses. Calculate variable expenses. Design your budget with categories. Pray for wisdom: in setting your budget goals, for self-control in spending, and for discipline in maintaining plans.

c. Using a budget Keep it visible and available for use. Set achievable goals and estimates. Keep records up to date. Establish a set time and day to review it with your spouse. Make changes as circumstances and plans warrant.

"Think before you buy." Consider these questions before a purchase, particularly a more expensive or unplanned one.

Is it necessary?

Does it reflect your Christian ethic?

Is it the best buy?

Is it an impulse item?

Would my spouse agree with the decision to purchase?

Does it add to or detract from the family?

Is it a highly depreciable item?

Does it require costly upkeep?

This couple owed $30,000 in debt as a result of poor financial decisions.

"We were not tithing and could hardly afford to feed ourselves. We did not want to file bankruptcy. We had created the mess and wanted to do the right thing and pay off all our creditors. We began tithing on our gross. We could not afford your budgeting guide so I went to the local Christian bookstore and studied the workbook. Larry, it worked. That was over three years ago and we have been debt free for eight months now."

Chapter Two

We'll hold the distinction of being the only nation in the history of the world that ever went to the poor house in an automobile. -Will Rogers

Planning is an essential element in any financial program, but particularly for Christians. God is an orderly provider and expects the same from us.

Why Should We Plan?

1. God wants us to be knowledgeable about the assets He has entrusted to us. "Know well the condition of your flocks, and pay attention to your herds" (Proverbs 27:23). For herds or flocks, substitute what you actually have.

2. We are to be an active part of God's plan as we exercise our minds and abilities. "Commit your works to the Lord and your plans will be established" (Proverbs 16:3). We are required to plan and to commit those plans to the Lord.

3. Plan with the future in mind. "Which one of you, when he wants to build a tower, does not first sit down and calculate the cost to see if he has enough to complete it?" (Luke 14:28). That means we should anticipate the unforeseen.

4. Each Christian should know God's provision for him individually and be content with it. "Godliness actually is a means of great gain when accompanied by contentment" (1 Timothy 6:6). When godliness and contentment work together in our hearts and minds, they bring gain-both financially and, more importantly, spiritually.

Considering Your Family Plan

Family planning is more than considering the number of children to have. Every Christian should establish a long-range family plan. What do you want for your family? Have you ever brought your family together to pray about how God wants you to live? Your budget doesn't determine your family plan. Your family plan determines your budget. Your budget is a reflection of your family goals and direction.

Key elements of your family plan include the following.

1. Decide a career path. Too often we choose a job based only on its pay. There are other issues to consider. What kind of career or job best allows you to meet your church and family commitments? Will both the husband and the wife work? Are you willing to move with your job, or are you committed to a geographical area more than to a job? (Note: Crown Financial Ministries offers a comprehensive vocational assessment. Visit our Web site at www.crown.org.)

2. Plan for children and other dependents. Beyond the number of children, do you plan for one parent to stay at home? Will the children attend public school, private school, or remain at home for school? Is it likely you will have to provide for another family member, such as an elderly parent?

3. Have a family giving plan. Why should God trust you with a surplus? Do you have financial goals specifically related to giving to His kingdom? Does your family manage excess money well? Do your children understand a proper attitude about material possessions? Pray together as a family about ministries and humanitarian needs around the world. Pray to increase your giving as God gives to you.

4. Have a surplus plan. You should establish a plan in the event that you accumulate wealth faster than anticipated. Scripture is clear on this point: God's surplus is to be shared. This is God's plan for Christians, but unless you have a predetermined plan for increase, expenses are often adjusted to offset any increases. Consequently there will never be a surplus to share.

5. Have an estate plan. Do you have a plan for how much to leave your family after your death? God's plan is to provide for the needs of our family members and, if possible, provide for certain financial goals in our family plan (such as college education) in the event of an untimely death.

Setting Your Family Plan

Communication is vital to family financial planning. To enhance that communication, some questions are listed for both husband and wife. I suggest that each of you do them separately. Write every answer as if your spouse were asking the question. Then, during a time when you won't be interrupted, evaluate these together. Begin your evaluation by praying about your time together and opening your hearts to the Holy Spirit.

The questions are intended to enrich the discussions of mature, communicating Christian couples. They are not intended to become an additional source of friction for couples who are already void of communication and defensive about finances. Use them as tools of love, not ammunition for war.

Family Goals

1. What are our family goals? _______________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

2. Are we achieving our family goals? If not, how could we better communicate, plan, and achieve these goals? ____________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

3. a. (Wife asks) What can I do to help you fulfill your responsibilities as spiritual leader of our family? __________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ b. (Husband asks) How can I better fulfill my responsibilities as spiritual leader? ________________________________________________________________________________ ________________________________________________________________________________

4. Do you feel we are meeting the spiritual needs of our family? _____________________ ___________________________________________________________________________________ ___________________________________________________________________________________

5. What kinds of family devotions should we have? ____________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________

6. List the responsibilities stated for the husband and wife in the following passages:

1 Peter 3:1-2 _____________________________________________________________________ Colossians 3:18-19 ________________________________________________________________ 1 Timothy 2:11-15 _________________________________________________________________ 1 Corinthians 11:3 ________________________________________________________________ Ephesians 5:17-33 _________________________________________________________________

7. Do you think we have a consistent prayer life together? ___________________________ ___________________________________________________________________________________

8. Do you believe we are adequately involved in our local church? ____________________ ___________________________________________________________________________________

9. Do you feel we are meeting the physical needs of our family? ______________________ ___________________________________________________________________________________

10. Should we improve our eating habits? _____________________________________________ __________________________________________________________________________________

11. Should we get more exercise? _____________________________________________________ __________________________________________________________________________________

12. Do we make good use of our time? For example, do we watch too much TV? Should we have more hobbies? read more? __________________________________________ __________________________________________________________________________________

13. How and when should we discipline our children? What do you think is the biblical viewpoint of discipline? _________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________

14. List the responsibilities of parents and their children in the following passages.

Colossians 3:18-19 _______________________________________________________________ Hebrews 12:5-11 __________________________________________________________________ Proverbs 3:11-12 _________________________________________________________________ Ephesians 6:4 ____________________________________________________________________

15. What kind of instruction and training should be given to children in the home? ______________________________________________________________________________ ______________________________________________________________________________

Financial Goals

1. Do you think I handle money properly? _________________________________________ _______________________________________________________________________________

2. How could I better manage our money? __________________________________________ _______________________________________________________________________________

3. Do you think I am

too frugal? ___________________________________________________________________ too extravagant? ______________________________________________________________ about right? __________________________________________________________________ Why? __________________________________________________________________________

4. Do you think I accept financial responsibilities well? ________________________ _______________________________________________________________________________

5. Do you think we communicate financial goals well? _____________________________ _______________________________________________________________________________

6. What is your immediate financial goal? ________________________________________ _______________________________________________________________________________

7. What is your primary goal for this year? ______________________________________ _______________________________________________________________________________

8. What is your plan for our children's education? _______________________________ _______________________________________________________________________________

9. What is your retirement goal? _________________________________________________ _______________________________________________________________________________

10. What do you think about tithing?

Is tithing necessary? ________________________________________________________ How much? ____________________________________________________________________ Where should it go? __________________________________________________________

11. How do you feel about giving in general? Would you like to give more? _____________________________________________________________________ _____________________________________________________________________

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Continues...

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Excerpted from THE FAMILY FINANCIAL WORKBOOK by LARRY BURKETT Copyright © 2000 by Larry Burkett
Excerpted by permission. All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.

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