Do you know that it has been shown conclusively that individuals with high financial stress have more disease and illness than those without financial stress? For school families, this could mean – less money available for tuition. For employees, it could mean more sick days or less productivity.
Studies have shown that just a little financial education can make a big difference. Here are a few principles that can help anyone with their personal finances:
Spend less than you earn.
Be wise with debt.
Plan for financial margin, because the unexpected will occur.
Set long-term goals, because there's always a trade-off between the short-term and the long-term.
Give generously, because giving breaks the power of money.
When our faith informs our finances, money loses its grip on our lives.
A Biblical worldview should impact every area of our finances for the glory of God and not our own selfishness.
Where is the impact seen?
Lower credit card balances.
Fewer delinquencies.
Budgeting practices.
Savings plans.
Less financial stress.
Fewer family conflicts.
How about you as a Christian school? How can you help your families that are struggling financially? Is it your responsibility?
Incorporating a financial literacy program into your tuition aid program could yield tremendous dividends.
If you’ve been involved in financial aid very long, you know that financial stress is not a low-income issue. In fact, those with the highest financial stress are middle-income families. But families of every economic level experience this stress. The less educated families are about biblical financial management principles the greater the stress, regardless of income.
87% of applicants we have serviced, in our BeneFAQ financial aid verification program, identified personal money management practices needing improvement. Even families that are financially savvy attest to the benefit of being reminded of sound financial management principles. The bottom-line principle is this: our money is really God’s money, and we are merely stewards of what He has given us. So, why not be a part of the solution as a Christian school by helping guide your families to make wise decisions about their finances? If you are not ministering to your school families (particularly your tuition aid families) in this manner are you truly fulfilling your mission of “supporting the Christian family?”
Here's a place you can start helping families at your school:
Be humble and recognize that living life via Biblical principles is not black and white, and no two family situations (and previous financial decisions they have made) are exactly alike.
Help families understand that while God gives them the freedom to make decisions and prioritize their spending, with that freedom comes great responsibility.
I think it’s a fair and honest question to ask, “are you prioritizing your children’s education or your personal lifestyle preferences?” and, “are your financial goals centered around your comfort and selfish needs, or focused on God’s glory?” These may be tough questions to ask a family, but it is good stewardship for all of us to regularly question our convictions and heart motives that can help ensure that our financial decisions are made in light of what really matters most.
Encourage families to take the time to examine their finances regularly, allow others to ask them hard questions, and point out financial blindspots (such as poor spending habits).
Keep learning and be challenged in your own stewardship journey. This is a lifelong process. Teach by example.
Recent data from the New York Federal Reserve (2022), Experian (2022), Federal Reserve Board (2022), the St. Louis Federal Reserve (2022), and the Bureau of Labor Statistics (2022) reports the following:
The average household's monthly expenses are $5,577 ($66,928 per year).
The average annual income after taxes is $78,743.
Housing is the largest average cost at $1,885 per month, making up 34% of typical spending.
Americans spend $691 on food per month, with almost two-thirds being spent on groceries ($438) and the rest on eating out ($253).
The average monthly expenditure for entertainment is a whopping $297 (5% of monthly income).
Americans, between the ages of 35-44, had an average revolving credit card debt of $5,991. This is the primary age group for most parents of school-aged children.
Be aware of issues impacting your family’s financial situations and do your best to point them toward practical ways to reduce spending and debt, in order to keep their children in your school.
Families in your school, who have an excess debt-to-income ratio, or an expense-to-income ratio that leaves little to no room to pay for tuition, will eventually leave your school, and possibly with unpaid amounts of past due tuition. Merely providing financial aid to these families is not the answer. Helping families reduce or altogether eliminate unnecessary monthly or annual expenses, providing them with some solid biblical financial tools and other resources to manage their money well, will save them and your school from financial stress, and possible ruin.
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